Emissions Scandal Catches Up With Volkswagen As November Sales Fall

Volkswagen on Tuesday tied halted sales of diesel-powered vehicles affected by the emissions troubles to the large decline. Last month, the government said it sent VW a show-cause notice after tests by the Automotive Research Association of India showed significant variations between on-road tests and those done in laboratories.

“Volkswagen is working tirelessly on an approved remedy for the affected [diesel] vehicles”.

These sales figures come in the wake of an emissions scandal in which the U.S. Environmental Protection Agency (EPA) issued a notice of violation of the Clean Air Act to the company after discovering that the company had manipulated their turbocharged direct injection diesel engines to mislead laboratory emissions tests to the effect that certain pollutants met U.S. standards. And in October, the first full month after the scandal, sales remained stable, thanks to discounts and incentives offered by dealerships.

The German carmaker reported that United States sales in November fell nearly 25% from a year ago. After adjusting for the loss of diesels, deliveries of all other VW models models fell by 2,381 units from November 2014, or 9 percent. If the year wraps up with an 18 million total, it will beat the best year on record, 2000, by half a million cars and trucks.

“These people bought vehicles that have turned out to be not what they bought”, he said. He pointed out that low gas prices have already saved Americans about $98bn.

“What I think is happening is that some dealers will use the scandel as leverage to give the auto owners as little as possible for the vehicle, they’re trying to take advantage of a situation that is not even affecting New Zealand”, sales manager Anthony Blanche said.

Hyundai Motor America, which saw a 11.8% rise, said it had its best November ever with 60,000 vehicles sold.

For the full year, the pain wasn’t quite as sever for the German automaker – sales were down only 4.3%.

Fortunately for the embattled company, the fixes that it will make to its diesel engines will likely involve software updates and relatively minor mechanical changes.

“Automakers are in a very healthy position after the close of Black Friday promotions, with nine of the top 12 manufacturers experiencing notable revenue gains”, said Eric Lyman, vice president of industry insights at TrueCar.