So Much For Being Green: Volkswagen October US Sales On The Increase In Spite Of Diesel Scandal

Volkswagen's sales of VW-brand vehicles in the U.S. have grown "slightly" in October, the first full month since the company's emissions scandal broke, two people familiar with the matter said.

VW is offering discounts on new models and other incentives in the world's second-largest auto market, which have helped to offset a sales ban on all 2.0-liter, four-cylinder diesel models enacted last month when VW's rigging of emissions tests became public, said the people with knowledge of the sales data.

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TheSteve - 10/30/2015 11:00:07 AM

+3 Boost

So the interesting thing here is that VW moved a lot of diesel units, and without the ability to sell 2 liter diesel engines, they shifted those sales to gasoline engines, and *increased* units moved. That increase is due in no small part to the enormous wads of cash they're putting on the hood; more than double the industry average.

So while it appears to be good news that VW unit sales are up, the bigger question will be how is their bottom line (profit)? And you can bet that'll be hurt when they start fixing and buying back "cheat" diesel vehicle, and paying the potential US$30 Billion in fines.

The sh*t has only begun to hit the fan at VW. They still have a long way to go.

222max - 10/30/2015 12:39:03 PM

+3 Boost

Couldn't agree more. VW will be incentivizing the crap out of their lineup to keep product flowing but, make no mistake, damage has been done and while it may not set them back the way the infamous unintended acceleration scandal nearly destroyed Audi back in the 80s, it will hurt.

Agent009 - 10/30/2015 2:17:19 PM

-6 Boost

Exactly, but it does prove that the buying public may be more interested in saving cash than going green.

It makes you wonder what truly motivates the American buyer these days.

MDarringer - 10/30/2015 11:50:18 PM

+2 Boost

The true cost to VW per car is more than the incentive because not only are they having to buy down the price so consumers will buy cars, they are having to pay dealers for lost profits too. Dealers were already nervous about how quickly the Passat fizzled. They were angry about not having competent crossovers.

TomM - 10/30/2015 8:40:49 PM

+2 Boost

When you sold few cars last year - it is easier to sell more this year.

The fact is - with gas prices as they are - and with Gas engines being more "green" that diesels in actuality - why wouldn't a "green" buyer get a gas engine over a diesel.

However - Money is what motivates a car buyer. If you are actually going to buy a car - and you include a VW model in your possibilities - the VW will likely come out at a significant savings from just a few months ago.

TeibNet - 10/31/2015 1:48:28 PM

+1 Boost

Superficially, things might not look as bad as they really are. The incentives are being used to mask the reality. Such incentives are costly and as such, they are not sustainable.

jameswisrik - 10/31/2015 6:37:01 PM

+1 Boost

I hear rumors there is also a cheat software for regular gas ...

http://www.popularcar.net/es/166/page2/Unreliable-Cars-and-Trucks-to-Avoid