Insights on Managing Public Opinion Risks in the Automotive Industry

The impact of online content on market sales has become a significant concern for the new energy vehicle (NEV) sector, leading to an increase in public opinion crises and targeted attacks by online black public relations. In a recent article, Catherine Guo, a partner at Anli Partners with extensive experience in managing public opinion risks in the automotive industry, shared insights and practical approaches for in-house legal professionals to navigate these challenges.

Guo highlighted five main types of public opinion risks in the automotive industry:

1. Product liability risks: Disputes over core components like braking systems and battery safety can lead to punitive damages under the Product Quality Law.
2. Online defamation risks: Negative reviews, biased comparisons, and commercial disparagement can impact potential car buyers, requiring strong evidence collection skills to prove malicious intent.
3. Risks stemming from public events: Disputes between car owners, manufacturers, and dealers can escalate into collective legal actions.
4. Legal disputes among competitors: Cases involving trade secret infringements, patent disputes, and defamation can attract high-profile public attention.
5. Regulatory chain reactions: Major public opinion incidents may trigger regulatory actions within 48 hours, such as special inspections by market supervision authorities.

To effectively manage public opinion, companies should establish an early warning system to identify potential risks in advance. Guo likened public opinion to a fire, emphasizing the importance of understanding the cause, intensity, and spread of negative information. Companies can establish a multi-level early warning system based on the speed and intensity of sentiment, with a red alert indicating the highest level of risk.

In responding to public opinion crises, companies should focus on legal characterisation, issuing a well-crafted company statement, and seeking assistance from external legal counsel for impartial perspectives. A carefully crafted company statement can defuse tensions and turn a crisis into an opportunity to establish a positive brand image.

Overall, Guo’s insights provide valuable guidance for in-house legal professionals in the automotive industry to effectively manage public opinion risks and navigate the challenges posed by online content and targeted attacks.