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I'd buy another Toyota, but VWs give me pause. Glad I skipped the Rabbits. Guess I've had the most luck with Nissans come to think of it.
What was the best NEW vehicle you ever bought?
My wife has endearing memories of the '82 Tercel sedan. It was peppy and fun to drive, but I think she liked it because it was the first car she'd had, new or otherwise.
Fun question. You?
"Volkswagen's very public goal has been to be the biggest car maker in the world. And it reached that goal in the first six months of this year, selling 5.04 million vehicles and moving past Toyota.
Szakaly says Volkswagen’s aggressive global push adding factories and brands could work against the company: “A large system that produces a large volume of motor vehicles is also very expensive to run and it’s also very expensive to maintain.”
But that global expansion got it to number one. Mike Austin, editor in chief of Autoblog.com, says the company’s sales in China have been a major plus. In Europe, of course, it’s a slam dunk. On the other hand, he says the company is struggling in the U.S.
“They only have about 30,000 units so far this year,” he says. “It’s one-sixth the size of Toyota in terms of sales.” He says Volkswagen and Toyota are so close, it’s anyone's game for the next six months."
Poor reporting. VW sales were 30k last month total 2015 US sales for VW was 174,442.
http://www.usatoday.com/story/money/2015/07/28/volkswagen-surpasses-toyota-worlds-largest-automaker-first-half-2015/30772509/
2016 Volkswagen Touareg Gets $2,000 Price Cut; Touareg Hybrid Discontinued
2016 Volkswagen Tiguan Arrives at VW Showrooms With $1,365 Price Cut
VW was in a slump before this news story, and not just slumping in the US.
"The decline in Volkswagen's group vehicle sales accelerated to 5.4 percent in August, from 3.7 percent in July, with the German carmaker citing tough markets in Latin America, Russia and China."
Volkswagen sales slide accelerates in August (Reuters)
VW Offers $500 Loyalty Bonus (247wallst.com)
Seems like they may need to change the software and hardware, which will be expensive and difficult.
Could it be impossible? Could VW be forced to buy back these polluting diesels to get them off the road? Hmmm.
Also, while there are almost 500,000 non compliant VW/Audi diesel cars in the U.S., worldwide there are 11,000,000 such cars, according to the NY Times. It seems to me that VW will lose its 2015 sales lead to Toyota, and maybe even fall behind GM this year.
Another consequence of this diesel issue is that it'll put GM's ignition switch issue in the background. On balance, it'll help sales of the other major world manufacturers, including the Detroit 3, Peugeot, Renault and Chrysler-Fiat.
Longer term, most people tend to have short memories, so my guess is that if VW handles this mess well sales will begin to recover by sometime in 2017.
11 million cars that pollute in ways that violate laws? If true, that will cause major financial damage to VW.
"Volkswagen Says 11 Million Cars Worldwide Are Affected in Diesel Deception
By JACK EWINGSEPT. 22, 2015
FRANKFURT — The scope of Volkswagen’s diesel scandal broadened on Tuesday, when the company said that 11 million of its diesel cars worldwide were equipped with the same software that was used to cheat on emissions tests in the United States.
The German automaker said it was setting aside 6.5 billion euros, or about $7.3 billion, to cover the cost of fixing the cars to comply with pollution standards. That could have a big impact on the company’s profits, which totaled €12.7 billion last year.
The carmaker’s statement was its first admission that diesel cars outside the United States may contain the software that led the Environmental Protection Agency to accuse the company of deliberately evading pollution tests. Previously, Volkswagen had acknowledged only that the problem affected about 500,000 vehicles in the United States..."
"Forty-one years ago, Volkswagen paid $120,000 to settle charges that it violated emission-control rules by placing a defeat device, which deactivated part of the emission control system, on some 1973 vehicles." (USA Today)
From VW's statement:
"Volkswagen does not tolerate any kind of violation of laws whatsoever. " (via the Atlantic)
Translation from the original Deutsch - "dammit, we got caught again".
adios, VW.
Winterkorn, 68, was Volkswagen (VLKAY) CEO for eight years. The German company, which also owns the Audi and Porsche brands, had just achieved his long-standing goal of overtaking Toyota (TM) to become the biggest automaker three years ahead of target.
http://money.cnn.com/2015/09/23/news/companies/volkswagen-emissions-crisis/
To put things in perspective, while overtaking Toyota and GM in sales was a notable achievement it was for the first half of 2015, and not for a full year. For calendar 2015 VW is likely to be third in world sales.
http://www.nytimes.com/2015/09/25/business/international/problems-at-volkswagen-start-in-the-boardroom.html?hpw&rref&action=click&pgtype=Homepage&module=well-region®ion=bottom-well&WT.nav=bottom-well&_r=0
"China’s shunning of diesel cars may turn out to have been a blessing for Volkswagen, as it’s shielded the company from direct backlash in its largest market. The Wolfsburg, Germany-based automaker has counted on the country for about 35 percent of vehicle sales this year and plans to raise local production capacity to 5 million autos by 2019, from 3.5 million in 2014.
“The Chinese government has been supporting development of electric vehicles instead of diesel-powered cars,” said Steve Man, a Hong Kong-based analyst with Bloomberg Intelligence. “China is critical for Volkswagen and the ban on diesel cars may make China a savior for the company and help preserve the brand’s good reputation in the market.”
China Pushes Ahead With Electric Vehicles Amid Diesel Scrutiny (Bloomberg)
The US is toast for a while and the EU may not be so hot a market either. VW needs to look to China - cash flow from the gassers to keep the company afloat while they R&D EVs for the Chinese market. Then export the tech.
The heck with joining hands with FCA - go with VW/Chery as a joint venture.
VW signed a deal earlier this year to build both EVs and hybrids in China. They have several already in production.
http://europe.autonews.com/article/20150604/ANE/150609930/vw-saic-sign-deal-to-build-evs-plug-in-hybrids-in-china
The 2014 Paris Motor Show is shaping up to be a showcase of fuel saving technologies. Citroen and Peugeot are showcasing compressed-air hybrids, while Volkswagen will reveal a "GTE" plug-in hybrid version of its eighth-generation Passat that boasts economy figures of 141 mpg (2.0 l/100km).
http://www.gizmag.com/volkswagen-passat-gte-hybrid/34034/
The Tiguan GTE is another SUV, but in this case a plug-in hybrid. It is based on the very popular MQB platform, which has seen ~2.6 million sales since it was birthed 2007.
The Tiguan GTE concept has 50 kilometers (31 miles) of electric driving range, presumably based on the overly generous New European Driving Cycle. “Its average fuel consumption (combined) is a mere 1.9 l/100 km; this equates to a CO2 emissions figure of 42 g/km,”
http://evobsession.com/volkswagen-tiguan-plug-in-hybrid-suv-unveiled-at-frankfurt-motor-show/
"The Volkswagen brand, a stalwart in emerging markets and in Europe, has been hurting in the U.S. since 2013, facing stiff competition in the popular SUV segment."
Volkswagen Diesel Scandal: Here’s How Bad Volkswagen Sales Were Before The Company Was Caught Cheating (ibtimes.com)
http://europe.autonews.com/article/20150930/COPY/309309964
"Demand for Volkswagen-branded diesel cars through German online car dealer MeinAuto.de slipped from 40 percent to 30 percent of total enquiries last week as the scandal unravelled, according to numbers flagged by Deutsche Bank analysts who described it as "the first 'tangible' number we came across in recent days".
VW’s diesel debacle may already have hit sales (CNBC)
Not so gloomy (yet) in the US:
"Volkswagen AG’s U.S. sales rose 6.3 percent last month, less than rivals’ but better than analysts expected, in a sign of how consumers are reacting to the automaker’s cheating on diesel emissions tests. VW didn’t give results for its diesels, including the 2-liter models that were pulled from lots."
Volkswagen-Audi U.S. Sales Climb 6.3% Amid Diesel Scandal (Bloomberg)
"Meanwhile, Volkswagen separately said Friday it would cut a second production shift, this time at its auto production site in Puebla, Mexico, amid expectations the emissions scandal will slow sales. The cut announced Friday follows a similar move at a Volkswagen’s engine factory in Salzgitter, Germany, this week."
Volkswagen Starts Helping Customers Identify Tainted Cars (WSJ registration link)
EU may have been created to promote and sell VW / Skoda / Seat cars to the Europeans by strong arm tactics !!
nytimes.com/2015/10/02/world/europe/germany-volkswagen-autos-merkel.html?ref=world&_r=0
VW scandal will spell the doom for German ambitions in the EU.
VW Chief Says Automaker Will Scale Back Amid Diesel Emissions Crisis (NY Times)
So, VW will have about 20% of inventory it can't sell, and FCA will be out of inventory if a strike happens and lasts any significant amount of time. GM is a bit at risk since they have the UAW to worry about.
That leaves Toyota in the catbird seat eh?
"Ford Motor Co. and Fiat Chrysler Automobiles NV have provided some of their dealers with new trade-in and other incentives to help convince owners of older Volkswagen, Audi and other Volkswagen automotive brands to buy their new models." (WSJ - may be a registration link)
Auto supplier Bosch sued in Alabama for conspiring with Volkswagen (al.com)
VW's board meets today. Tommorrow is the US Congressional hearing.
I also don't think the UAW understands that Marchionne is not your typical Detroit exec. I think he is more like Caterpillar and if the union selectively targets his jewels with local strikes, he may well lock them all out and seek new employees like Cat did. Might get interesting, But my bigger concern is that because the sales market is up right now, Ford and GM may cave to the UAW and then end up in trouble again when the market goes soft.