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Emissions Scandal Catches Up With Volkswagen As November Sales Fall

In November, Volkswagen halted sales of another 85,000 vehicles with three-liter diesel engines amid allegations they, too, contained defeat devices. In November of 2014, it sold nearly 32,000, the Associated Press reports.

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In addition, Volkswagen is under investigation by regulators in the United States and Europe for exaggerating claims about fuel efficiency and emissions on conventional gasoline vehicles.

Germany’s Volkswagen Group on Tuesday announced its decision to recall 3,23,700 vehicles encompassing cars from the Volkswagen, Audi and SKODA model range equipped with a software which helps cheat emission tests.

Volkswagen’s USA sales fell by a quarter last month as the German carmaker counted the cost of the emissions test cheating scandal. Doyle says VW, Audi and Porsche incentives were collectively up 27% in November compared to the year before to an average $3,747 per vehicle, more than quadruple the rise in the auto industry as a whole.

The hit from the scandal couldn’t be coming at a worse time for VW. This comes a week after VW was ordered by South Korea to recall more than 125,000 diesel vehicles.

VW has suspended sales of its diesel-powered models until it resolves its issues with the Environmental Protection Agency and California Air Resources Board.

Akshay Anand, an analyst with Kelley Blue Book, said Volkswagen likely won’t see its USA sales increase until it fixes the affected diesels and introduces new vehicles.

Mark McNabb, chief operating officer for Volkswagen of America, said the company was “working tirelessly on an approved remedy” for affected vehicles. Sales for the year-to-date were down four per cent at 318,484. November worldwide sales haven’t yet been released.

Ford sales in the month were essentially flat over a year earlier at 187,794 cars and trucks.

Among Volkswagen’s notable brands, sales of Jettas fell roughly 30% in November and Passats fell more than 60%.

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Among foreign automakers, Toyota said its sales increased 3.4 percent and Nissan reported a 3.8 percent gain. “Revenue in December should also be strong as it’s historically a huge month for luxury brands, ranking as the top-selling month for premium vehicles for the past six years”.

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