Volkswagen Extends Olive Branch To U.S. Dealers, Vowing To Salvage Damaged Brand

VW Cross Coupe, VW, Volkswagen

Volkswagen AG at the weekend reached out to car dealers hit in the pocket by the company’s emissions-testing controversy, though key stuff the dealers were looking to hear was not said.

Herbert Diess of VW met with over a hundred dealers for an hour and half in Las Vegas on Saturday, where he affirmed that that the company plans to be a key mass-market player once again in the U.S.

He insisted that VW will “redefine” their sullied image and in time “relaunch” their brand.

Diese also said that the fallen automotive giant will fast-track new products so that dealers can get their sales back on track.

A lot of attention during the 90 minute talk was focused on the 2016 Volkswagen Alltrack. VW are looking to roll out around 8,000 in 2016 and a further 30,000 next year.

Dealers, however, are insisting that they want some 75,000 Alltrack’s in 2017.

Volkswagen Financial Concerns

The VW executive also disclosed the fact that he can’t go into specifics about the legal and financial consequences of the emissions-testing scandal, which is estimated to cost Volkswagen billions of dollars.

The lack of info on how U.S. dealers will be reimbursed for any damages caused by loss of sales has tarnished relations between VW and its dealers.

VW is currently talking to regulators about how they can solve the growing issue.

The German company has numerous fines to pay, and it also is yet to fix cars affected by the scandal.

Moreover, VW need to develop a strategy that will enable them to become a big player in the diesel mass-market again.

Will Titterington
  • 4th April 2016

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