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VW Used Big Discounts to Avoid U.S. Sales Slide
Volkswagen AG used heavy incentives in the U.S. last month to avoid a sales slide caused by its diesel engine scandal, Automotive News reports.
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Volkswagen AG used heavy incentives in the U.S. last month to avoid a sales slide caused by its diesel engine scandal, Automotive News reports.
The effort worked, barely: The VW brand sold 74 more vehicles in October than it did in the same month last year, according to Autodata Corp.
The Environmental Protection Agency revealed in mid-September that VW had rigged 482,000 of its 4-cylinder diesels in the U.S. to cheat on government emission tests. The company quickly suspended diesel sales, which last year accounted for roughly 20% of its volume. EPA also withheld certification for VW’s 2016 model diesels pending review of their emission control systems.
To compensate, VW hiked per-unit sales incentives more than 50% last month to $4,000 per vehicle, AN says. The carmaker’s array of discounts included $2,000 for repeat customers, low- or zero-rate financing and cash bonuses of nearly $2,800 for buyers of gasoline powered Passat sedans and Tiguan small crossovers.
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