Get 40% Off
👀 👁 🧿 All eyes on Biogen, up +4,56% after posting earnings. Our AI picked it in March 2024.
Which stocks will surge next?
Unlock AI-picked Stocks

Volkswagen CEO sees no diesel in future of U.S. business

Published 11/22/2016, 02:59 PM
Updated 11/22/2016, 02:59 PM
© Reuters. Volkswagen's brand chief Herbert Diess delivers his speech as Volkswagen presents a turnaround plan at a news conference in Wolfsburg

By Andreas Cremer and Alexandria Sage

WOLFSBURG, Germany/SAN FRANCISCO (Reuters) - Volkswagen (DE:VOWG_p) will no longer offer diesel vehicles in the United States, its global brand chief said on Tuesday, ending speculation the company might return to the technology after its emissions scandal fades from memory.

The comments by Volkswagen brand Chief Executive Herbert Diess, first reported by European business daily Handelsblatt and confirmed to Reuters by a VW spokesman, were the strongest yet to deny the possibility that diesel - once a quarter of the brand's U.S. sales - could be a part of Volkswagen's future U.S. lineup.

Volkswagen reached a $14.7 billion settlement with 475,000 U.S. owners of diesel vehicles and federal and California regulators in October after admitting to installing secret software in its diesel cars to cheat emissions tests.

In September, Diess told Reuters at the Paris Auto Show the company was not yet ready to abandon diesel technology, and could continue to offer diesel models for the U.S. market.

Just last week at the Los Angeles Auto Show, the CEO of Volkswagen Group of America, Hinrich Woebcken, told reporters he did not believe diesel would ever "come back in the same magnitude as we've seen it up to now" in the U.S. market.

"Emissions standards in following years are getting tougher and tougher," Woebcken said. "Why don't you put the money and investments ... to comply with these standards, why don't you put the money on the spot where the future is?" he asked, speaking of VW's new focus on electric vehicles.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Luxury car brand Audi, a subsidiary of Volkswagen, still sees a diesel vehicle as possible, its Americas president said last week.

"Once we hopefully get past everything, I see an opportunity for potentially, probably to offer it on one model, and that model would probably be the Q7 SUV," Audi of America President Scott Keogh told Reuters.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.