Volkswagen To Re-Evaluate Diesel’s Potential In U.S. ‘Product By Product’

Tue, Sep 13, 2016 1,275

With tightening emissions standards, it’s becoming more difficult than ever for automakers to manufacture diesel engines that comply with regulations. Volkswagen was required to stop selling its diesel-powered vehicles in the U.S. in the immediate aftermath of Dieselgate, but it isn’t ruling out a comeback.

VW is currently focusing on selling its gas-powered engines, and has plans to slowly roll out hybrid and full-electric models. But without diesels to sell, VW’s market share dropped, though sales of its gasoline-powered vehicles have surprised Hinrich Woebcken, head of Volkswagen AG North America, according to The Wall Street Journal.

Although it would be costly to redevelop its TDI engines to meet emission standards, VW said it will review the potential for diesels in the U.S. on a “product by product and package by package” basis, according to WSJ.

Whether or not VW is able to meet those standards in the future might not even matter, though. If people have lost the trust in the company thanks to Dieselgate, one of the biggest automotive scandals ever, bringing diesel engines back could be a lost cause.

And recent sales figures suggest that might be the case.

Despite increasing incentives by 31 percent in August, compared to last year, VW’s year-over-year sales dropped 9 percent in the U.S., according to Yahoo Finance.

Thumbnail photo via Volkswagen