Volkswagen Scrapping Plans For US Overhaul Until After Scandal

Aaron Cole
by Aaron Cole

Volkswagen could significantly overhaul its U.S. operations — including not selling diesel models in the country — after it has dealt with federal and civil claims stemming from its massive diesel cheating scandal, Reuters reported.

The report, which quoted two sources familiar with the automaker’s plans, said replacing North American chief Winfried Vahland, who quit after three weeks, would happen after the automaker has reached an agreement over its illegally polluting cars.

Roughly one out of every five Volkswagens sold in America is a diesel model, the company reported before the scandal erupted.

In 2014, Volkswagen Group reported over 598,000 sales in the U.S., of which nearly 367,000 were Volkswagen-branded vehicles. Globally, the company reported sales of just over 10 million cars. Volkswagen’s U.S. sales have slowed significantly since its peak in 2012 — even before the diesel scandal.

Meanwhile, Porsche seems to be pretty profitable

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  • FormerFF FormerFF on Oct 27, 2015

    It's pretty tough to make an economic case for diesel cars in the US or Canada. I haven't driven one, so I can't comment on whether or not they're more enjoyable to drive.

    • See 2 previous
    • FormerFF FormerFF on Oct 28, 2015

      @Luke42 Thanks. The only diesel vehicles I've driven include a 18 foot Isuzu moving van (very trucky), a late model Ram pickup with the Cummins I-6 (also very trucky), and a 1983 Mazda B2200 with a Perkins 2.2 liter normally aspirated diesel (slow, vibratey, noisy, and slow. Did I mention it was slow?) Lately I've been driving a plug in hybrid, and I've become addicted to the perfect response that an electrified drivetrain gives. If I get a chance to drive a diesel Jetta I sure will take it, but I'm pretty sure I wouldn't want one on a permanent basis, the kind of driving I do favors the hybrid powertrain.

  • Tekdemon Tekdemon on Oct 27, 2015

    Scandals aside, it seems that if you qualify for their $2000 loyalty rebate there are some pretty great lease deals you could get on a Jetta or a Passat that might make them cheaper to lease than pretty much anything else. Too bad you have to actually own a VW first.

    • Brettc Brettc on Oct 28, 2015

      VW needs to do a lot better than $2000 for loyalty cash. It'll be interesting to see how their October sales are and whether or not they bump the cash up for the forthcoming months.

  • Richjw Richjw on Oct 28, 2015

    VW will survive. As will VWoA. Restructure can wait, as long as Wolfsburg comes up with a plan. VW will shift to an offering of EV's across its line-up along with Hybrids. They are investing in next gen battery technology (Tesla is way ahead) and - if VW uses its head, it could provide a turning point for EV infrastructure for the US. (Think: Instead of $5B in fines, $5B to build charging station across America - an opportuity is knockng EPA to really make a change). That VW cheated is unacceptable. Find the culprits, hold them personally accountable and change the corporate structure to keep it from repeating. And VW - hopefully - will learn to understand the American market and make the cars they will buy.

  • Voyager Voyager on Oct 28, 2015

    It's a disgrace! 1. It took German prosecutors three weeks to decide to raid VW offices to look for evidence. 2. The European auto industry is already lobbying to extend the leniency towards testing diesels. 3. Still no uprising of shareholders who insist on firing management without the usual golden parachutes; management that should be held accountable for the catastrophic losses and drop in shareholder value.