Volkswagen US sales plummet after emissions scandal

  • Volkswagen US sales plummet after emissions scandal

Volkswagen US sales plummet after emissions scandal

VW said it will increase spending on alternative drive technology such as electric and hybrid vehicles by 100 million euros next year compared with previous targets.

Terming emission test cheating by Volkswagen as "well thought-out crime", government today said all diesel passenger vehicles in India will come under scanner in the next six months to check their compliance with norms.

Total sales fell by almost 8,000 vehicles from a year ago to 23,882 units in November: a whopping 25 percent.

The Ford Motor Co., the second-biggest American automaker, said its sales rose 0.4 percent to 187,000 vehicles in November.

Volkswagen Group India said the owners will be informed by it through the respective brands about the technical measures that will be implemented in their cars.

Sales for the Beetle coupe dropped about 50 percent while Golf and Passat models fell more than 60 percent.

Following the Volkswagen Group's embarrassing and expensive diesel emissions defeat device scandal, the company's head office in Germany has embarked on a huge cost-cutting exercise to help it stem its losses.

The automaker is trying to boost production of the gasoline-powered cars that it is allowed to sell, but it didn't increase shipments to dealers until the middle of the month.

The U.S.is a relatively small market for Volkswagen AG. "We would like to thank our dealers and customers for their continued patience and loyalty", said Mark McNabb, chief operating officer, Volkswagen US. The company has also been battered as customers flee cars in favor of crossovers.

The company has admitted to fitting up to 11 million diesel cars worldwide with software that cheats emissions standards.

Volkswagen AG will recall about 323,700 cars in India after a government-ordered probe into its diesel models showed emissions exceeding permissible limits.

There were some bright spots in VW's results.

"From the end of this month, we will start testing all passenger diesel vehicles in India to estimate whether they have committed emission violations".

"Volkswagen will take a long time to dig out from under this, but the very first step needs to be a clear and comprehensive plan for fixing it, and that does not appear to be forthcoming soon".

Kelley Blue Book analyst Alec Gutierrez said there's a serious risk that consumers won't return to Volkswagen diesels even after the fix is delivered. VW got more cars to dealers about November 18, but it takes at least a week to prepare the cars for sale and advertise them, he said.