VW Nov. sales drop 25 percent as TDI scandal wears on

December 1, 2015
Volkswagen’s US sales have fallen by nearly 25 percent as many TDI models remain unsaleable.

The company in September halted distribution of vehicles powered by non-compliant four-cylinder TDI engines after the Environmental Protection Agency first announced discrepancies with emissions tests. The agency later found problems with VW Group’s 3.0-liter V6 diesel, prompting a sales interruption of the Touareg TDI earlier this month.

Deliveries of the Golf fell by 64 percent for the month, while the Jetta SportWagen (now Golf SportWagen) lost more than half its sales volume. Passat and Beetle sales were down by 60 percent and 39 percent, respectively.

Despite the diesel troubles, certain models remained in demand. Tiguan sales surged by nearly 88 percent, and GTI numbers were up by almost 14 percent. The e-Golf achieved the biggest gains, tripling sales from 119 units to 472 vehicles for the month. Even the Eos experienced a slight uptick. Perhaps not coincidentally, all four gainers are not available with TDI engines in the US market.

“Volkswagen is working tirelessly on an approved remedy for the affected TDI vehicles,” said VoA COO Mark McNabb. “During this time we would like to thank our dealers and customers for their continued patience and loyalty.”

Sales are expected to remain down until VW puts its offending TDI models back on the market. The company has already outlined a seemingly straightforward fix in Europe, however stricter US regulations are believed to pose more of a technical challenge as engineers attempt to implement a refit that does not affect performance or fuel economy. Many TDI vehicles held on lots will likely be forced to collect dust until sometime next year.

VW last month posted its first quarterly loss in more than 15 years, with revenue $3.9 billion USD in the red. The company quickly launched a compensation program to mollify dealers, as TDI models accounted for approximately 23 percent of US sales before the EPA announced emissions violations.

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