VW's Feels The Effect of The Emission Cheating Scandal As November Sales Plunge 25%

by Industry Week | Technology

VW's Sales Plunge 25% in November 

 

The Emission scandal that engulfed Volkswagen in late September has taken its toll on the company's sales after it suspended sales in the US in November, according to a report by the Industry Week

 

Volkswagen's U.S. sales plunged 25% as a result of the freeze on sales as the German auto-maker try to redeem its image.

 

According to a report by the Industry Week, the emissions cheating scandal has had its toll on the embattled German following the freeze on diesel car models in the States on November 4 after new accusations on the use of software that cheats on emissions tests.

The suspension affects about 20% of its typical sales but appears to have also impacted non-diesel models.

It sold nearly 8,000 vehicles less than a year ago and reported only 23,882 units in November.

 

Their arch rival however, Toyota of Japan showed a 3.4% increase in November from last year.

 

GM was up 1.5%, Ford 4% and Fiat-Chrysler 3%. Honda was down 5%, with its pickups and SUVs lagging behind other automakers. Volkswagen sold 5,462 TDI diesel vehicles in November 2014, the report said.

 

But consumer trust on the company has not been lost altogether and IW said sales held in month immediately following the scandal which forced the resignation of its former CEO, Martin Winterkorn, just one day to the renewal of his contract.

The IW report quotes Michelle Krebs, senior analyst for Autotrader as saying: "Volkswagen was lucky to hold its own in the months immediately following the revelation of the emissions problems, but its luck on sales ran out in November," adding "Volkswagen will take a long time to dig out from under this, but the very first step needs to be a clear and comprehensive plan for fixing it, and that does not appear to be forthcoming soon."

Read the full report [ here ].