VW says goodbye to diesels in USA
Good day and welcome to another story from Car Business – On the Job. Bob Aldons reporting to you from Redcliffe Australia about the latest twist in the VW ‘dieselgate’ saga. And isn’t this a story that just keeps on giving? It’s been over 12 months since this story broke in 2015 and it continues. Herbert Diess of Volkswagen has allegedly announced through the German daily newspaper, Handelsblatt that VW will not offer diesel engines in North America for years if not ever again. So what does that mean for Audi and Porsche which use the same engines? And what about other international markets where VW had previously offered these power plants?
I think that as each country introduces higher Euro emission regulation, VW will have to withdraw diesel technology, unless of course, their engineers miraculously fix the problem. In Australia, the deniers (Michael Bartsch) are still maintaining their neolithic stance with a head in the sand. ‘We don’t have to do anything for Australian customers because we meet or exceed current Australian environmental levels”.
That might bee the case Mr. Bartsch, but can you explain the resultant issues for Australian VW owners, please. Resale values on diesel VW vehicles have fallen through the floor. I saw a 2012 Gold Diesel DSG hatch with under 60,000k’s offered for less than $15000, and at that, there were only 3 of these vehicles offered for sale in Queensland. Really? Is it the double trouble – diesel engine with troublesome DSG transmission? Personally, I don’t have an issue with VW diesel engines nor DSG transmissions, but there seem to be quite some consumers who do.
Here’s an article from Autoweek, our US based industry colleagues. Pretty interesting read
REPORT: VW BRAND CEO SAYS TDI MODELS ARE NOT COMING BACK TO THE U.S.
Volkswagen will not offer new diesel models in the U.S. the German daily Handelsblatt reports. VW brand chief Herbert Diess made the admission to the paper after months of indecision on the matter on the part of the automaker, as it had earlier been suggested by other VW executives that TDI models may come back for a year or two before more stringent regulations kick in.
This means that VW will no longer offer TDI versions of the Golf, Jetta, Beetle, Passat and Touareg models in the U.S.
VW, Audi, and Porsche had not applied for EPA certification for its 2.0-liter and 3.0-liter diesel models for the 2016 and 2017 model years in the wake of the diesel scandal, though VW’s apparent statement on TDI models is unlikely to extend to all Audi and Porsche vehicles in the near future. Audi has indicated that it will continue to offer some 3.0-liter diesel models after the current issue is resolved, and Porsche may also continue to offer the Cayenne Diesel.
Diess’ comments represent a sharp turn away from diesel models in the U.S., which for VW represented a quarter of all U.S. sales. Audi offered the A6, A7, A8, A8L, Q5 and Q7 models equipped with 3.0-liter diesel engines — a greater variety than VW though a smaller volume of sales — until November 2015, when the EPA Notice of Violation forced a stop-sale order for the models.
Diess’ statements to Handelsblatt indicates VW may not be able to sell unsold 2015 model year diesels after a fix for the 2.0-liter engines is developed. VW is still expected to repair several thousand 2.0-liter VW vehicles whose owners have elected to keep them; recent comments by VW representatives suggest that many but not most owners are keeping their cars instead of selling them back. The situation may be different for new, unsold examples that have been gathering dust since September 2015.
VW’s reported decision on the matter may represent a combination of impending diesel regulations, which are expected to kick in at the end of the decade, and bad publicity as a result of the diesel crisis in the U.S. Earlier this summer VW U.S. chief Hinrich J. Woebcken indicated that TDI models may come back for the 2017 through 2019 model years.
“The regulations from 2019-2020 are going to be so hard that we would have had to find an alternative to a certain extent anyhow,” Woebcken said at the time. “The diesel crisis is forcing us simply to think about this earlier.”
The VW Group has yet to resolve the matter of the 3.0-liter models by Audi and Porsche, a chunk of which will reportedly be bought back by the automaker. VW is expected to repair some 60,000 remaining examples and continue to offer at least one 3.0-liter TDI V6 model in 2017 or 2018.
Read more: http://autoweek.com
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