Volkswagen brand US sales fall nearly 25 percent in November

Volkswagen AG’s US sales were hit hard last month by the company’s diesel-emissions scandal, as dealers labored for most of the month with inadequate saleable inventory on their lots.

On continued sales of vehicles powered by the EA189 engines, VW said: “Based on the current situation, Volkswagen Group India will continue the production and sales of the cars with EA 189 engines in India”.

Volkswagen of America posted its November sales figures Tuesday, reporting a 24.72% drop in overall sales compared to November 2014.

Of the four engines from the EA 189 diesel engine family, software updates will be performed on the 1.5-litre, 1.6-litre and 2-litre engines.

Volkswagen also announced that in order to make sure that all its cars are running the latest hardware and software, there will be a voluntary recall of all cars sold running the EA 189 engines.

Volkswagen was in discussions with banks in November for up to $22 billion in financing to brace for emissions-related costs, a person familiar with the matter has said.

Among foreign automakers, Toyota said its sales increased 3.4 percent and Nissan reported a 3.8 percent gain.

In October, the company’s Indian unit said it was recalling 389 units of its best-selling Polo hatchback produced in September for inspection and preventive fix of a glitch in the handbrake.

However, not all models of Volkswagen in the USA recorded a decline. Now, with November sales in the books, the true impact of this cheating scandal has reared its ugly head. The vehicles contain illegal software known as “defeat devices” that skirt USA clean air rules. The move follows a month after the government said it sent VW a show-cause notice after tests by the Automotive Research Association of India showed noticeable differences between on-road tests and tests done in laboratories.

“We have proposed to check emission levels of all diesel vehicles in the country”. In November, Volkswagen halted sales of an additional 85,000 vehicles with three-liter diesel engines amid allegations they, too, contained defeat devices.

Last month, Fiat Chrysler’s sales reached 175,974 – a 3% rise.

With sales plummeting by 25 percent in November, how will the automaker’s US sales fare in December to end this forgettable year? Honda fell by 5.2 percent.

The company also said Tuesday that about 50 employees have stepped forward in an amnesty program to offer information about who was responsible for the emissions scandal.