More Than 70 Percent Of Car Shoppers Believe Emissions Crisis Could Spread Beyond Volkswagen And Mistrust Of The Brand Rides High

Autotrader Quick Poll Reports 30 Percent of Respondents Less Likely to Consider a

IRVINE, CA and ATLANTA --Oct. 5, 2015: Kelley Blue Book and Autotrader today report that more than 70 percent of KBB.com survey respondents believe the diesel emissions issue could spread beyond just Volkswagen. As for the brand's reputation, the majority of those surveyed say they have "complete" or "general mistrust" in Volkswagen. In addition, according to a recent Autotrader Quick Poll, 30 percent of respondents say they would be less likely to consider a diesel vehicle.

"Volkswagen can fix the mechanical problems and make reparations to owners, but winning back the confidence of shoppers and loyal buyers will be a daunting challenge that could take years to overcome," said Michelle Krebs, senior analyst for Autotrader. "Every automaker should take note of the importance of integrity."

Key Highlights from Kelley Blue Book and Autotrader Research on the Diesel Emissions Crisis

Awareness of Diesel Emissions Crisis is High, Primarily Associated with Volkswagen; Other Brands Are Suspected

• 64 percent of consumers are aware of the diesel emissions issue.
• 96 percent of those aware say that Volkswagen is the primary manufacturer involved.
• 63 percent cite "intentional deceit" as the most troubling aspect of this issue.
• 53 percent of respondents say they have "complete" or "general mistrust" in Volkswagen.
• 72 percent say they think this issue could spread beyond Volkswagen.
• 42 percent feel other automobile manufacturers also are secretly violating EPA emission rules.
• 58 percent are unsure if Volkswagen is taking proper actions in addressing this issue.

Source: Kelley Blue Book's KBB.com Survey, September 23-28, 2015, with 1,002 respondents

• According to an Autotrader Quick Poll, 30 percent of respondents say they would be less likely to consider a diesel vehicle.

"Automotive consumers are well aware of the diesel emissions issue, and they have Volkswagen squarely in their sights as the manufacturer at fault; as a result, the company's brand image is taking a hit," said Rick Wainschel, vice president of customer analytics and insights for Kelley Blue Book. "If this issue spreads, which consumers see as entirely plausible, other manufacturers – and diesel vehicles in general -- also could be affected."

Volkswagen Site Metrics for Autotrader (Week-Over-Week)

• Volkswagen Shopping for Diesel has increased 7 percent.
• Total Volkswagen Shopping is down 1 percent.
• Volkswagen Private Seller Activity for Diesel is up 19 percent.
• Total Volkswagen Private Seller Activity is up 1 percent.

Autotrader Listing Information for Volkswagen

Source: Autotrader Inventory, 9/12/15-9/18/15 (Pre-Announcement) Versus 9/19/15-9/25/15 (Post-Announcement)

"This announcement impacts the diesel vehicles from Volkswagen, which carry higher residual values than their equivalent gasoline counterparts," said Eric Ibara, director of residual values for Kelley Blue Book. "While early readings suggest that TDI vehicles are being affected by the news, it is possible that they could return to normal levels within a year. This will depend on how Volkswagen handles this crisis and what they announce the fix will be for the U.S. market."