Volkswagen proposes to resell most cars strangled in the German automaker’s diesel emissions scandal.
The statement was made by the brand head, Herbert Diess after the board meeting on Thursday. The fallout is something they need to bear as the company seeks to grab a market share in the US.
Moving forward, he also said that the brand has suffered tremendously and they aren’t sure about what’s next. Since more than a year, Volkswagen agreed to pay over $20 billion against criminal charges. This was pertaining to the company’s sales equivalent to 600,000 cars with ‘defeat devices’ just to clear the emission tests.
The first batch of retrofitted vehicles comprises of new 2015 models that were not sold after the cheating scandal was revealed. Hinrich Woebcken, head of Volkswagen Group of America spoke that dealers who got diesels through the buyback program will avail the right to refuse vehicles from getting showcased in the used market.
Further, there are many channels that would help to market them in the best way. This has to be done so that the residual value remains stable and vehicles don’t enter the market all at once. Moreover, heavily used vehicles would be no longer be in use. The management meeting in Chattanooga would be held as VW boosts the production of seven seat SUVs. This is the best example because the company would drift from small cars and be involved to become a volume brand in the United States. Diess said that the objective is to increase the market share from 2 percent to 5 percent.
To achieve 5 percent, VW has to pass Ram, Subaru, GMC, Mercedes-Benz, Dodge, Lexus, Hyundai, Kia and Jeep. As recorded on July 31, all the brands had less than 5 percent share.
VW confirmed to introduce an electrically operated microbus in 2022, but the decision has not been made. Since 1970s, Volkswagen vans haven’t been sold in USA. But, the new versions arouse excitement when it was shown in California last month.
Diess said that the company boasts a beautiful heritage with trials and triumphs. Even when the past was dreadful, they seek a second chance to grow through American customers.
If there’s any other production apart from Passat sedan and Atlas, then it would be managed at the plant in Chattanooga. This plant is much capable and the company wishes to use it to their advantage.
Volkswagen’s U.S. plans don’t arrange for a pickup. Diess said that it’s risky because the American players are above par. Investment has to be made in something that’s necessary. The plan offers flexibility to the North American region to design vehicles for the local area. Matthias Erb, the chief engineering officer for Volkswagen’s North American region said that drifting from the decision denotes a different shift to culture at the organization. This is due to the fact that it failed to recognize features which enhance comfort.
According to Erb, the new approach is distinct with the decision of new SUVs in North America and Atlas. They have been sold by the name ‘Teramont’ in other markets.
The brand name was changed five years ago or else everyone would be fired.