VW Makes It Official: No More Diesels for U.S.

Volkswagen brand chief Herbert Diess confirms the unit will no longer offer diesel-powered vehicles in the North American market.

Diess’ comments to that effect were reported on Tuesday by Handelsblatt and confirmed later in the day by Reuters. VW Group's Audi unit indicated previously that it may continue to offer a diesel option in the region.

VW Group has been banned from selling diesels in the U.S. since it admitted 15 months ago to rigging engines to cheat on emission tests. In June the company reached a $14.7 billion settlement covering 475,000 cars in the U.S. that are equipped with 4-cylinder diesels. A separate settlement for owners of about 85,000 V-6 diesel models is imminent.

Diesels once accounted for more than 20% of VW brand sales in the American market. But VW executives have been signaling for months that a complete phase-out for the option in the region was likely.

VW’s cheating was a result of the company’s struggles to meet U.S. diesel emission standards, which are considerably more strict than those in Europe. Last week the company suggested that it was ready to reallocate the cost of certifying diesels into “the spot where the future is,” meaning electrified powertrains.