Volkswagen U.S. CEO: Diesels to Take a Backseat Going Forward

You don’t have to be a marketing expert to know Volkswagen’s diesel reputation is tarnished in the U.S. and in other countries, so it probably comes as no surprise that VW is less than enthusiastic to pursue diesel growth in this market. Still, this is the first time we’re hearing it from the mouth of the top VW executive in the U.S.

In an interview, Volkswagen Group of America CEO Hinrich Woebcken told Automotive News that “clean diesels” won’t be at the core of its U.S. brand identity going forward.

“We are not stopping diesel. Wherever diesel makes sense as a package to the car, we’ll continue,” Woebcken said. “But in reality, we have to accept that the high percentage of diesels that we had before will not come back again.”

Given that VW will spend roughly $15 billion in the U.S. on reparations and to buy back or repair (if a fix is approved) affected 2.0-liter TDI models, this move should shock no one. But shifting its focus away from diesel represents a drastic change in VW’s strategy. Prior to the scandal, Volkswagen offered diesel engines in six of its eight U.S. models, and TDI-branded cars and crossovers accounted for more than 20 percent of U.S. sales. Volkswagen halted sales of new diesel models shortly after news of the scandal broke. Though no cheat devices were found in vehicles with the new EA288 diesel engine, VW withdrew its request to EPA-certify 2016 TDI models. The automaker has not submitted a new request.

But according to Woebcken, this shift away from diesels was going to happen eventually anyway.

“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,” he told AN. “The diesel crisis is forcing us simply to think about this earlier.”

As we’ve previously reported, VW plans to pursue electrification with a new MEB modular platform specifically designed for EVs. Additionally, the company will focus on crossovers and all-wheel drive in the U.S.

Source: Automotive News (Subscription required)

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