Gas Pains: While daily headlines about the Volkswagen (VW) diesel scandal have abated, media coverage continues. At our press time two Fridays ago, the automaker said it was delaying its March 10 annual earnings report and shareholders’ meeting set for April 21 due to uncertainty about the cost of fixing the diesel emissions problem. Months ago VW set aside some $7.3 billion to make fixes to software in the 11 million cars in question. In addition it likely will need to pay fines and lawsuits in the billions if not tens of billions, The NY Times said, adding that analysts are unable to predict the exact amount. While it’s not always a bad sign when brands delay earnings reports, it often is. For the most part, VW has been tight-lipped about the scandal. It took the brand months before it held a press conference in Germany to address the issue. Another PR blunder: Last month VW boss Matthias Müller told NPR “We didn’t lie.” He later recanted.
Muscle Bound: Who says you can’t shape the message? In fact, it can be made muscular. Gawker’s investigative unit found a State Department official negotiated with The Atlantic’s Marc Ambinder for an early copy of a 2009 foreign policy speech that then-Sec of State Hillary Clinton was to deliver. In return the State Department’s Philippe Reines insisted Ambinder adhere to several conditions. First, he wanted Ambinder to characterize the speech as “muscular.” Check. He also wanted The Atlantic’s then-politics editor to note those in attendance included envoys Richard Holbrooke and George Mitchell, and National Security Council senior director Dennis Ross. Check. Last condition: “You don’t say you were blackmailed!” Well, at least Reines and Ambinder had a sense of humor. You could argue this is a systemic issue; the Internet’s pressure has conditioned the press pool to find scoops at all costs, including journalistic emasculation—although can you recall the last time a foreign policy speech made news? Another sad note: Chris Lehmann in The Baffler notes at least two other outlets, Politico and New York Magazine online, contained references to muscularity and the day’s seating chart. As Lehmann writes, “I’ll leave it to advanced statistical savants to work out the odds of such themes surfacing in the daily churn of State Department news....” Journalism and PR look bad on this one, as does the Clinton camp by association. Yet with Ambinder’s dispatch passing for political coverage the American public is the biggest loser.
A Thousand Cuts: More trouble for blood-testing startup Theranos. Earlier this month its main retail partner Walgreens suspended some ties to Theranos, whose finger-pricking test and low prices were perceived as a threat to disrupt the industry ( PRN, Feb 1). Now, after media reports that questioned the efficacy of Theranos’ technology, two unsatisfactory visits from federal agencies and poor PR work—basically the company has refused to make CEO Elizabeth Holmes available to answer the charges ( PRN, Dec 21, 2015)—Walgreens has given Theranos 30 days to fix its problems or the entire relationship will be kaput, according to The Wall St Journal. Theranos’ relationship with The Cleveland Clinic also appears shaky. The clinic claims Theranos has failed to properly demonstrate to it how its technology works. Despite its board being loaded with D.C. heavies like Henry Kissinger and George Shultz, Theranos’ biggest immediate challenge is the federal government. The Centers for Medicare and Medicaid Services found Theranos out of compliance and gave it until last Friday to fix things or face daily fines that could cripple the company. -- Nasdaq and its GlobeNewswire distribution unit entered into a definitive agreement to acquire Marketwired, a distribution and analytics provider. The deal is expected to close in Q1 2016. Nasdaq said its “corporate services clients will benefit from an enhanced experience by gaining access to Marketwired’s…social media targeting tools.” -- Was it effective for Chipotle to close its doors last Monday to explain new food safety procedures to employees? Yes, says Bill Jasso, PR professor at Syracuse University.Chipotle “demonstrated to its loyal customer base that it is taking this situation seriously...[and] communicated clearly why it closed its stores.” Unfortunately, there also was a lot of coverage about Hank Levine, the MD man whose mobile number was similar to one Chipotle urged followers to text to receive a free burrito when outlets reopened Tuesday. After receiving hundreds of texts, he texted the correct number to get his free burrito and went to his local Chipotle for solace. Finding none, he opened a Twitter account to get Chipotle’s attention. His story spread. He received law questions (he’s a lawyer) and date proposals (he’s happily married). Chipotle corporate resolved the situation and gave Levine 4 free burritos. -- Teresa Henderson joined Burson-Marsteller as SW market leader and a managing director in the U.S. corporate and financial practice. Teresa Henderson, Burson-Marsteller SW Market Leader, Managing Director, U.S. Corporate and Financial PracticeLike a Hillary Clinton Speech.
This article originally appeared in the February 15, 2016 issue of PR News. Read more subscriber-only content by becoming a PR News subscriber today.