VW Cuts Prices in Japan

Volkswagen AG has lowered prices on its Golf hatchback in Japan by as much as 160,000 yen ($1,500) to bolster sales there. The discount reduces the price of the car to less than 2.5 million yen ($22,900). VW has added discounts on other models too, The Nikkei reports.

The VW brand outsold all other foreign marques in Japan for 15 years until 2015, when it was surpassed by Mercedes-Benz. But the newspaper says VW’s image for high quality has been dented by its global diesel emission cheating scandal—even though the company hasn’t marketed any of the affected engines in Japan.

VW sales in the country plunged 19% last year and were down 8% in April. The Nikkei opines that cutting prices may further cheapen the brand. The Japanese market contributes less than 1% of VW’s global volume.