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BMW Brilliance Automotive Ltd. Crisis Communication Plan Kaiqi Xue Crisis Communication Northeastern University October 2014

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BMW Brilliance Automotive Ltd.

Crisis

Communication

Plan Kaiqi Xue

Crisis Communication

Northeastern University

October 2014

1

(Background—BMW Brilliance Automotive Ltd. (BBA), located in Shenyang China,

is a nationwide joint venture of BMW Group and Brilliance China Automotive

Holdings Ltd. It connects and cooperates closely with BMW Group Region China.

The main business of BBA is to manufacture 3 types of BMW cars, to sell them and

other imported BMW cars, and to provide after-sales services in the mainland of

China.)

Crisis Inventory

The probability of each crisis is estimated according to the events that occurred

recently in China, and information gathered on the Internet. The talent leaving and

cars being recalled are now occurring in China.

In this exercise, I will design the crisis communication plan around two crises which I

think are most likely happen: Production Failure (recalling cars) and Talent Leaving.

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Transportation delay

Natural disaster

Strikes from employee

Production failure(recall sold cars)

Customers protest/boycott

Computer failure

Computer hacking

Talent leaving

Lawsuits

Damage Probability

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Introduction

Dear BBA employees,

BMW Brilliance Automotive Ltd. (BBA) was founded in 2003. With the hard work of

all the employees, BBA is now able to thrive and provide the best services to our

customers.

However, the future is unpredictable. Any crisis could emerge at any time, and can

destroy our company’s reputation and prospects if they are not handled properly.

Therefore, to minimize the damages that are caused by possible crises, it is necessary

to prepare in advance so that we know what actions should be taken and can react

quickly as soon as we encounter them.

This crisis communication plan is established to provide instructions for actions that

should be taken when we encounter Production Failure (recalling cars) crisis and

Talent Leaving crisis. Both of these crises have already occurred and they are likely to

occur again in the future. Therefore, instructions for these crises must be followed. If

not, we will not only fail to establish a highly efficient team to strengthen our

company, but also will ruin our reputation by not fulfilling our mission as placing our

customers as our top priority.

Let us always be well prepared to meet our challenges.

Sincerely,

Olaf Kastner

Chief Executive Officer and President

BMW Brilliance Automotive Ltd.

Rehearsal Date

Due to its high probability and the greatest impact, a rehearsal on how to react to the

public regarding the Production Failure crisis is scheduled for every 6 months. It

happens every May and November.

The high probability of Talent Leaving crisis is attributed to the fact that many senior

managers in top management have gone to other automobile companies in recent

years, which has led the public to question BBA’s personal management. Therefore,

we have upgraded the probability of this crisis and plan to schedule the rehearsal

annually. It happens every August.

Purpose and Objectives

BMW Brilliance Automotive Ltd. (BBA) is committed to being an open, honest and

transparent automobile manufacturer for the public. It is written in our policy that any

information we provid must be verified and updated in a timely manner.

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As a corporate citizen, BBA will take responsibility for our customers and employees

under any circumstances. In any crisis, BBA aims to minimize customers’ and

employees’ losses by following these instruction and company’s policies strictly.

List of Key Publics

Production Failure (recalling cars)

Top management in BMW China

All the board members

Shareholders

Corporate attorneys

Public communications department

Government officials

Suppliers

Manufacture department manager and employees

All the employees

All the dealers

Clients/customers

Media (including traditional ones and online social platforms)

Talent Leaving

Top management in BMW China

All the board members

Shareholders

Public relation/communication department

All the employees

Media (including traditional ones and online social platforms)

Notifying Public—methods

Public Production Failure (recall

sold cars)

Brain Drain

Top management in BMW

China

Phone, fax, email, intranet Phone, fax, email,

intranet

All the board members

Phone, fax, email, intranet,

face to face (meeting)

Phone, fax, email,

intranet, face-to-face

(meeting)

Shareholders Email Email

Corporate attorneys Phone, fax, email, intranet,

face-to-face

--

4

Public relations/communication

department

Phone, fax, email, intranet,

face to face (meeting)

Phone, fax, email,

intranet, face to face

(meeting)

Government officials Phone, fax, email, face to

face

--

Suppliers Phone, fax, email --

Manufacture department

manager and employees

Email, intranet, face to face

from upper managerment

--

All the employees Email, intranet Email, intranet

All the dealers Email, intranet --

Clients/customers Phone, email, official

website, official public

announcement, Weibo

(Twitter-like), Renren

(Facebook-like), official

blog

--

Media Phone, news release, press

conference, official website,

official public

announcement, Weibo

(Twitter-like), Renren

(Facebook-like), official

blog

Phone, news release,

press conference (if

necessary), official

website, official

public

announcement,

Weibo (Twitter-like),

Renren

(Facebook-like),

official blog

Crisis Communication Team

Managers:

Director of Public Relations Department

Senior manager in Brand management Department (assistant crisis manager)

Team members:

Deputy director in Public Relations Department

Senior manager in Government Affairs Department, Yue Sun

Senior manager in HR Department

Senior manager in Aftersales Department

Senior manager in Total Vehicle, Quality Management Department

Senior manager in Customer Relationship Management Department

All the employees in the Public Relations Department will assist the crisis

communication team to draft and publish the news; all the activities must be reported

to the President of Corporate Communication.

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Crisis Directory

Phone numbers Fax Email

Director of Public

Relations

Department of

BBA

(+86)###-####-#### 86-24-####-#### *****@bmw.com.cn

Senior manager in

Brand

management

Department of

BBA

(+86)###-####-#### 86-24-####-#### *****@bmw.com.cn

Deputy director in

Public Relations

Department of

BBA

(+86)###-####-#### 86-24-####-#### *****@bmw.com.cn

Senior manager in

Government

Affairs

Department of

BBA

(+86)###-####-#### 86-24-####-#### *****@bmw.com.cn

Senior manager in

HR Department

of BBA

(+86)###-####-#### 86-24-####-#### *****@bmw.com.cn

Senior manager in

Aftersales

Department of

BBA

(+86)###-####-#### 86-24-####-#### *****@bmw.com.cn

Senior manager in

Total Vehicle,

Quality

Management

Department

(+86)###-####-#### 86-24-####-#### *****@bmw.com.cn

Senior manager in

Customer

Relationship

Management

Department of

BBA

(+86)###-####-#### 86-24-####-#### *****@bmw.com.cn

President of

Corporate

Communication

(+86)###-####-#### 86-24-####-#### *****@bmw.com.cn

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of BBA

SVP of

Technology and

Manufacturing of

BBA

(+86)###-####-#### 86-24-####-#### *****@bmw.com.cn

CEO/president of

BBA

(+86)###-####-#### 86-24-####-#### *****@bmw.com.cn

Senior Vice

President of BBA

(+86)###-####-#### 86-24-####-#### *****@bmw.com.cn

CEO/president of

BMW China

(+86)###-####-#### 86-10-####-#### *****@bmw.com.cn

President of

Corporate

Communication

of BMW China

(+86)###-####-#### 86-10-####-#### *****@bmw.com.cn

Media Spokesperson

Olaf Kastner, the CEO of BBA, is authorized as the preferred spokesperson in any

crisis. However, in a crisis that occurs in a particular field, managers of that

department will be the second spokesperson to address the questions. For example, in

the Production Failure crisis, Knudt Flor, the SVP of Technology and Manufacturing

of BBA, will be the second spokesperson whose main job is to answer questions

regarding technical problems.

In any circumstance, the Director of Public Relations will speak on behalf of BBA in

front of the media. The Director of Public Relations and the President of Corporate

Communication will also be the back-up to the CEO as the primary spokesperson if

the CEO is not available when a crisis occurs.

Emergency Personnel and Local Officials

General Administration of Quality Supervision, Inspection and Quarantine of PR.

China

Tel: ####-####

Defective Product Administrative Center

Tel: ####-####

National Passenger Car Quality Supervision and Inspection Center

Tel: ####-####

BMW Group Region China

Tel: ####-####

BMW Group Headquarters

Tel: ####-####

BBA’s manufacturing factory in Shenyang

Tel: ####-####

My BMW Club (BMW China’s official car owners club)

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Tel: ####-####

BMW Car Club of China (unofficial)

Tel: ####-####

Key Media

Newspapers/magazines (print/online):

Editor, China Automotive News

Editor, Auto Magazine

Editor, Auto Motor und Spor

Car column editor, Xinhua News Agency

Car column editor, Chinanews Agency

Car column editors, Economic Daily/ China Daily/ Global Times/ China

Business/ The Economic Observer/Beijing Business Today/ Business Watch/

Guangzhou Daily/ Southern Weekend, etc.

TV

News desk, China Central Television stations

News desk, Phoenix Satellite Television stations

News desks, 34 Chinese Provincial Satellite Television stations

Radio

News desk, China National Radio

Spokesperson for Related Organization

Production Failure (recalling cars)

Official spokesperson, General Administration of Quality Supervision, Inspection

and Quarantine of PR. China

Tel: ####-####

Official spokesperson, National Passenger Car Quality Supervision and

Inspection Center

Tel: ####-####

Corporate spokesperson, BMW Group Region China

Tel: ####-####

Corporate spokesperson, BMW Group Headquarters

Tel: ####-####

Manager, BBA’s manufacture factory in Shenyang

Tel: ####-####

Managers, BMW China dealers in different cities

Tel: ####-####

Talent Leaving

Corporate spokesperson, BMW Group Region China

Tel: ####-####

Corporate spokesperson, BMW Group Headquarters

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Tel: ####-####

Crisis Communications Control Center

BBA’s branch company in Beijing:

25th

F, Tower B, GATEWAY, No.18 Xiaguangli Dongsanhuanbeilu, Chaoyang

District, Beijing

BMW China’s service center in Shanghai:

No. 900, Longwu Road, Xuhui District, Shanghai

Equipment and Supplies

All the office supplies

Phone, computers, fax, printers, copy machines

List and directory of key publics

List and directory of key media

Contact directories of all dealers

Cameras, microphones, video recorders

In addition, all the crisis communication team members’ phones must be turned on

24/7. Everyone must have the electronic backup of the list and directory of the key

public and media in their own computers.

Pre-gathered Information

Some documents must be prepared in advance so that the company is able to react to

the crisis as quickly as possible. The documents that are needed to be prepared in

advance should be:

Safety report

Annual financial report

Quality control procedure

Product manufacturing procedure

Corporate business concept and policies regarding after-sales service

Corporate fact sheet

Key messages

Production Failure (recalling cars):

BMW pays high attention to recently reported product issues. We have launched

the investigation immediately and have been fully cooperating with the General

Administration of Quality Supervision, Inspection and Quarantine of PR. China

(AQSIQ) on the investigation. We will publish and update the latest information

through the official channels and reply to our customers as soon as possible.

In order to ensure the safety of our customers and reduce our customers’ losses to

a minimum, we decided to recall all the products with potential problems. We will

contact all the affected customers to discuss the detailed recall matters in the next

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few months. Customers who do not receive personal notices from BMW

authorized dealers do not need to be worried as only customers own products

with potential problems will be informed. If customers have any questions, please

feel free to contact our customer service hotline: 400-800-6666 or visit our

website: http://www.bmw-brilliance.cn/cn/zh/recall_service.html; or check on the

AQSIQ website: www.aqsiq.gov.cn, the Defective Product Administrative Center

website: www.dpac.gov.cn, and the Automotive Recall website:

www.qiche365.org.cn. for more information.

BMW China and BBA are always committed to our customers-first policy. We

are devoted to solving all the related issues and continuing to provide the best

services to our customers. We apologize for any inconvenience to our customers.

Talent Leaving:

In BBA, we always respect our employees as well as any choices they make. It is

people’s right to choose their own jobs. Though we feel sorry about losing the

talented employees, we are glad that they find jobs that they think suitable and

hope they have a bright future.

We have more than 13,000 employees at BBA and the prosperity of BBA in

recent years proves that our employees are fully qualified for the jobs they are

doing. We believe our career paths will attract more talented people to join BBA’s

big family. We welcome any one who has the passion to push BBA further

forward.

Website

Information that is needed to be published for the public must be posted and updated

on the official website.

BBA official website:

Chinese version: http://www.bmw-brilliance.cn/cn/zh/index.html

English version: http://www.bmw-brilliance.cn/cn/en/index.html

BMW China official website:

Chinese version: http://www.bmw.com.cn/cn/zh/index.html

English version: http://www.bmw.com.cn/cn/en/index.html

Social Media

All the social media platforms listed below must be monitored closely and updated on

time.

Brilliance China Automotive Holdings Ltd. Weibo:

http://weibo.com/huachenqiche

BMW China, Weibo:

http://www.weibo.com/bmwchina

BMW China, Renren:

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http://page.renren.com/601296199?checked=true

MyBMWClub (BMW China’s official car owners club), official website:

http://www.mybmwclub.cn/bocc/member.php?mod=logging&action=login&refer

er=%2Fbocc%2F

MyBMWClub, Weibo:

http://www.weibo.com/mybmwclub

Prodromes

Production Failure (recalling cars):

Many customers complain about similar issues with their cars. Moreover, most of

these cars come from the same series.

There are some issues with the same group of products sold in other countries.

The recall of the same series has been launched in other countries.

Talent Leaving:

Employees begin to discuss privately the frequent issue that top managements

have left for the jobs in other automobile companies in recent years.

Rumors about the Talent Leaving begin to spread among employees and even on

the Internet.

Employees may be asked to provide information by some reporters informally.

Some media report and comment on the issue.

Related Internet URLs

General Administration of Quality Supervision, Inspection and Quarantine of PR.

China: www.aqsiq.gov.cn

Defective Product Administrative Center: www.dpac.gov.cn

Automotive Recall: www.qiche365.org.cn

Evaluation form

BMW Brilliance Automotive Ltd. Crisis Communication Evaluation Form

Crisis name: Occur date:

Description:

Result:

Please answer the following questions (rating scale: 1-totally disagree/need

improvement; 2-disagree; 3-neuturl; 4-agree, 5-totally agree)

1. Was the crisis communication plan followed strictly? 1 2 3 4 5

2. If yes, was it helpful? 1 2 3 4 5

3. If no, what do you think the reason was for this situation?

4. Do you think everyone knew their responsibilities and was able to fulfill them?

5. Was the result satisfactory? /Was the damage reduced to the minimum in the end?

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1 2 3 4 5

6. What do you think we should improve in this crisis communication plan to

prepare for the next similar crisis?

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Reference:

BMW Brilliance Automotive. (nd.). About BBA. In Company information. Retrieved

from http://www.bmw-brilliance.cn/cn/en/com_waw_bba.html

BMW Brilliance Automotive. (nd). Recall service. Retrieved from

http://www.bmw-brilliance.cn/cn/en/recall_service.html