Crisis of the Week: Vauxhall Tries to Douse Flames of Recall Controversy

ENLARGE

File photo from November 2015 of a Vauxhall Zafira that caught light on Manor Road in southwest London. PHOTO: ZUMA PRESS/LAURA KERR

This is a weekly commentary by external experts.

Vauxhall, a U.K.-based car maker owned by General Motors Corp., takes the crisis spotlight this week, after announcing a second recall of its Zafira B car model because of fire concerns. The second recall, which was announced in May and begins in August, was launched after a car fixed in the original recall in December caught fire. The company announced the second recall on its website, and then sent a letter to owners detailing what needs to be done.

After the first recall, the company said poor work to its heating and ventilation system caused the fires, and its comments followed an investigation that was prompted after car owners began complaining on Facebook in October 2015. The company’s chairman, Rory Harvey, apologized in a video statement, saying: “We are very sorry that this situation has arisen.” Customers are not being charged for any repairs, which the company estimated would cost around $44 million.

Using only the statements made by the company and its officials, the experts share their thoughts on how well the company is responding.

Adele Cehrs, chief executive, Epic PR Group: “One of the chief paradoxes in crisis management is that the timing of an announcement is supremely important, yet it is often an afterthought for most companies. In this case, Vauxhall took seven-and-a-half-years after its first reported incident–and after a widely publicized Facebook page was created–to recall the Zafira B. When questioned, Vauxhall’s customer service officer struggled to provide an explanation for why the company took so long to respond.

“In an attempt to extinguish the perception problem, Vauxhall’s chairman, Rory Harvey, gave a five-minute-video-statement. In the piece, Harvey makes no mention of  ‘safety’ or ‘mandatory repairs,’ but instead uses corporate-speak to describe the recall, such as a ‘preventative action’ to ‘improve the robustness of the system,’ which seems disproportionately light.

“In the past, an apology video, a recall website and responses in real-time on social media may have satisfied consumer concerns, but now companies must address anyone who posts a complaint with a tailored response. For a safety problem of this magnitude, Vauxhall should have stopped using robotic responses on its Facebook page–where a company spokesperson says to ‘keep their heat between zero to four’ and promises a followup letter regarding its staggered repair process.

“Additionally, Vauxhall is making car owners wait three months to bring their cars in for repair. This will only further erode consumer confidence. Vauxhall could have turned this $44 million media firestorm into a win if it would have invested in addressing the problem faster.”

Anthony D’Angelo, APR, Fellow PRSA, public relations professor at Syracuse University: “Given a repeated safety recall, Vauxhall is responding too slowly and with passive messaging. The chief executive’s video statement…does not convey sufficient urgency and focus to signal that Vauxhall is owning and attacking the problem. While clear and serious in tone, the video debuted last year after the first recall, and no update has appeared since the second was announced in May.

“Since then, Vauxhall has not kept pace with media and consumer criticism. The company’s website doesn’t have easy-to-find information on the crisis, and its latest post on its Facebook page was May 27. In the meantime, the ‘Vauxhall Safira Car Fires’ Facebook group boasts more than 16,000 members, and #Zafiracarfires is a popular Twitter hashtag.

“Vauxhall’s restorative actions must be both fast and disciplined, with much more frequent communication through multiple channels. It should doggedly seek the truth of the matter and, equally important, be seen as seeking and conveying that truth. It should communicate details of what it is doing to fix the problem today and prevent any recurrence, and explain why this wasn’t done at the outset of problems in 2009. Vauxhall, not its customers, should raise the obvious questions first—‘How can I be sure this fix will work?’ and ‘How will my car be worth anything in the future?’–and supply no-nonsense answers. That’s tough duty, but charred reputations demand it.”

Jennifer Vickery, chief executive, National Strategies Public Relations: “Vauxhall’s latest crisis has a combination of both good and bad in terms of the company’s public response. Starting with the good, Vauxhall’s video is heartfelt and appears genuine. Rory Harvey, chairman and managing director, expresses the company’s empathy for Zafira B auto owners and how seriously it is taking safety within their company.

“During this video and in additional statements, the company explains how it came to be facing not one but two recalls for the same issue, as well as the reason there was a delay in getting the information out to owners. Harvey states ‘unfortunately fires in cars can pose a major challenge for investigators as many are damaged beyond investigation.’ This speaks directly and clearly as to how difficult it was for the company to understand the malfunction, communicate and take action to getting its customers to safety. Consumers can begin to understand the challenge the company faces in course-correcting the issue.

“[The company faced a challenge on its Facebook page]…where a large number of concerned owners publicly brought the safety issue to light. The company should have spearheaded the Facebook group and moved ahead of the situation while acting as a more active participant. Although better than most, the seriousness of the issue outweighs the company’s communications and efforts for resolution by paying for all repairs. With time and continued ongoing communication such as it has already displayed, it can venture past the crisis. Overall, the company did better than average in its communication…but it hasn’t been as quick as the public would have expected.”

Write to Ben DiPietro at ben.dipietro@dowjones.com, and follow him on Twitter @BenDiPietro1.