Volkswagen US Dealers Slash Prices to Counter Diesel Crisis
US Volkswagen dealerships are offering incentives of up to $11,000 on new petrol and electric models as they struggle with unsold stock and regulatory blocks on diesel sales.
Volkswagen dealers across the United States have turned to aggressive incentives, with discounts reaching $11,000 on some models, as they attempt to shift unsold stock left stranded by the diesel emissions scandal. The move comes as the company remains unable to sell its 2016 diesel models, with US regulators yet to approve any technical fix.
Analysis of dealer pricing shows the 2015 Passat is being offered with incentives as high as $7,850, while the 2015 Jetta can be found with up to $7,290 off. The 2016 Jetta also carries discounts exceeding $5,600. On the electric front, the e-Golf is advertised with incentives up to $11,000, and the Jetta Hybrid is being discounted by as much as $6,000. These figures reflect the scale of the challenge Volkswagen faces in the US as it tries to maintain showroom traffic and clear a backlog of unsold cars.
Regulatory block on diesel sales
The Environmental Protection Agency (EPA) and California Air Resources Board (CARB) have yet to approve any technical solution for the nearly half a million diesel vehicles affected by the emissions cheating software. Volkswagen has said it is working with both agencies but has not committed to a timeline. California has set a deadline for a proposed remedy, while the EPA has not issued a specific date. In the meantime, 2016 diesel models remain off the market, leaving petrol, hybrid and electric models as the main focus for dealers.
Dealer strategies and market impact
With diesel sales halted, Volkswagen dealers in the US have little choice but to rely on heavy incentives to move petrol and alternative-fuel models. The scale of these discounts is highly unusual for the brand and reflects both the immediate pressure on inventory and the longer-term damage to Volkswagen’s reputation in the US market. According to reports, a technical fix for the affected diesel models is still weeks away, leaving dealers with limited options to recover lost sales.
For more on Volkswagen’s broader product strategy in the wake of its emissions crisis, see Volkswagen Plans 60 New and Upgraded Models to Counter European Decline.
