Volkswagen Scrapping Plans For US Overhaul Until After Scandal
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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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.
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.
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.
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.