MarketingWeek: BMW brand image slides after safety recall

Interesting | October 7th, 2010 by 7
bmw logo engine

Story of the week in the automotive world came from an important recall issued by BMW. BMW of North America submitting a letter to the …

Story of the week in the automotive world came from an important recall issued by BMW.

BMW of North America submitting a letter to the National Highway Transportation Safety Administration (NHTSA) this week announcing a voluntary recall of approximately 198,000 V8 and V12-powered BMW 5 Series, 6 Series, 7 Series, and Rolls-Royce Motor Cars models produced between the 2002 and 2010 model years.

In the affected vehicles, a leak may develop in the power braking system, potentially causing a vacuum loss and consequent reduction of power braking assistance. Mechanical braking is still available to slow and stop the vehicle. There has been no report of accidents or injuries.

According to Marketing Week, an expected decline in BMW’s brand perception has occurred. The recall of hundreds of thousands of vehicles due to a braking problem, led to a rating slide in brand’s image.

bmw logo engine

YouGov Brand Index data shows that the German car manufacturer’s Buzz rating, a measure of whether a person has heard a positive or negative statement about the brand, slumped to -4 on October 4th, from a 9.8 on 30 September, the day before the recall.

BMW says there have been no reports of accidents or injuries in relation to its decision to recall 10,522 vehicles in the UK and, reportedly, 200,000 in North America.

The recall involves BMW 5 Series, 6 Series and 7 Series vehicles powered by V8 and V12 engines from the 2002-2010 model years and certain Rolls-Royce cars from the 2003-2010 model years.

Same magazine states that despite the recalls, BMW has no plans to produce an awareness campaign and that all affected owners will be contacted individually.

As soon as the recall news hit the frontpage of many journals, marketing specialists began to compare the impact on the brand with the fiasco Toyota went through this year. Toyota has been working hard to restore their brand reputation, as well as regaining customers’ trust, and recent sales numbers are positive.

Compared to Toyota, BMW’s recall is likely to have significant less impact on the brand. Toyota’s recalls affected millions of vehicles worldwide, while the BMW and Roll-Royce recall affects fewer than 200,000 cars.

Another major differentiation between the recalls come from the type of issues encountered in the vehicles recalled. BMW’s recall is based on a possible leak in the power braking system that educes the amount of help the power brakes give the driver. Toyota’s recalls revolved around unintended acceleration.

In the next months, we expect to see more surveys and feedback being collected by marketing campaign, therefore, a more complete and fair analysis will become available.

7 responses to “MarketingWeek: BMW brand image slides after safety recall”

  1. Laszlo says:

    well, lots of potentially expensive issues were not recalled because they did not cause safety concerns. The diesel flaps in Europe are a major headache. The steering issues with the Z4, back in the 90’s the nikasil bore cylinders, the faulty electronics in teh new 4.4TT, and on and on. BMW is not free of these maladies.
    The recall is called a safety recall, so its only a recall when it affects the safety of your life not your bank account.
    I would much rather leave a brand for those then for a safety issue which will be fixed soon under this recall campaign. The safety recall of 200,000+ vehicles (us alone is 200k plus rest of the world) is a major one in BMW numbers. Toyota makes 10 time more vehicle, so their 2M recall is about a same percentage.
    Better to recall them now when the actual damage is small then later to get into Toyota’s fiasco.
    It would be nice to know how they are fixing this leak, how serious it is and whats the signs or warnings of it.
    Once I bought a car that had 4 recall 1 being a safety recall and none was done. The PO was ignorant or an idiot so he had none done. I scheduled the appointment and they did all but some were as old as 3 years old recalls !

  2. X5SoB says:

    Big frickin wup, recalls happen all the time, to ALL manufacturers. This one is pretty mild.

  3. plaxico says:

    oh my God!!!!!!!!!!
    This brand is even worse than i thought. The recall of hundreds of thousands of vehicles?????????????????????????? ARE YOU KIDDING ME?!?!
    and they have no plans to produce an awareness campaign!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!.and say ”hey Sir, look , u might wanna check ur mediocre car that WE made , its called bmw , we know that the interior is low- low-lowest of the low quality, we know that you gonna have to go to maintenance repair shop every other week, we know that you bought bmw b/c you have some ego issues so we lured you with ”ultimate driving nonsense ”, we know that d NEVER-EVER-NOT-IN A-ZILLION-YEARS happened if u bought top quality car like MERCEDES-BENZ or BENTLEY or even KIA etc, we know our engineering is poor, we know our cars have terrible uncomfortable blood-pouring-out-of-ur-ears-ride , BUT SIR there is one more thing …………u might wanna check ur BRAKES!!!!!!!!!!!!!!!!!!! ”

    SHAME ON YOU BMW!!!!!!!!!!!!

    Best or nothing !!!!!!

  4. Wooo hoo. says:

    LOL, Joe Camry is still jealous of the roundel…..

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