Emission scandal: VW to recall 3.23 lakh vehicles in India

Autocar India, Autocar Professional’s sister magazine, had exclusively reported on Monday, November 30, 2015 that the Volkswagen Group was bracing itself to initiate a recall of its cars affected by the diesel emissions scandal. They have tumbled 32 per cent this year through Tuesday. The total number of units sold last month was 23,882, down from 31,725 in November 2014. “It seems like one scandal after another and it just seems to be getting worse”. The owners of the affected vehicles will be informed by the respective brands of the Volkswagen Group after the solutions are approved by the authorities.

VW has suspended sales of its diesel-powered models until it resolves its issues with the Environmental Protection Agency and California Air Resources Board. That so many say they have information suggests knowledge of the cheating may have been more widespread than previously thought. Also today, Standard and Poor’s cut Volkswagen’s credit rating a notch, from A- to BBB+, on “a tarnished reputation and brand image, reduced business prospects, a more challenging competitive position, substantial costs, and weaker leverage metrics”.

Elaborating steps planned by the government to ensure that emission norms are not violated, Geete said: “Over the next six months, we will carry out checks on emission levels of all diesel passenger vehicles in India”.

“As we head into the final sales month, we are on track to achieve our sixth-consecutive record year and exceed 200,000 annual sales for the first time”, Del Rosso said in the statement.

“The favourable… environment of low interest rates, oil prices, and unemployment, coupled with our strongest product lineup ever, continues to be a significant driver of FCA sales”, sales chief Reid Bigland said.

The suspension affects about 20 percent of its typical sales but appears the emissions-fooling scandal also impacted non-diesel models.

Toyota sales were up 3.4%. Ford sales were up 0.4%. America Honda Motor sales were down 5.3%, due to a drop in Acura brand sales.

The VW brand sold 490,000 vehicles worldwide in October, 5% fewer than the year before.

The scandal has widened, with the German automaker subsequently revealing that it had understated carbon dioxide emissions, including those for gasoline engines, for up to 800,000 vehicles.