BERLIN (AP) – The “Made in Germany” label has stood for precision and reliability for decades, but since Volkswagen admitted to cheating on U.S. car emissions tests, many are questioning whether the automaker’s problems could taint the rest of the country.
It’s the second serious blow to a major German company’s reputation in six months, following the tragic crash of a Germanwings jet that killed 150 people. Parent company Lufthansa has faced questions over why it failed to identify the psychological issues suffered by the pilot who intentionally flew the plane into a French mountain.
Will such crises tarnish the hard-won, valuable reputations for quality of other German brands, such as BMW, Daimler or Bosch?
Experts say VW’s problems could hurt the economy in the short term due to the company’s sheer size, but that long-term damage to the country is unlikely.
That doesn’t mean others won’t try to capitalize. Companies will try to grab market share. And across Europe, people in countries that have been lectured by Germany for years about the virtues of financial honesty could be feeling smug.