auto dealer in black and red logo
MenuMENU
SearchSEARCH

Volkswagen Suffers 24.7% Drop in Unit Sales

The effects of Volkswagen’s diesel engine scandal are beginning to sink in, with the automaker reporting a 24.72% drop in November sales.

by Eric Gandarilla
December 2, 2015
2 min to read


HERNDON, Va. — The effects of Volkswagen’s diesel engine scandal are beginning to sink in, with the manufacturer’s November unit sales dropping 24.72% from a year ago. Kelley Blue Book and Autotrader analysts said they aren’t optimistic about the company’s future performances, even after it initiates its plan to fix the nearly 500,000 diesel vehicles sold in the United States with the emmissions software cheat.

Analysts with the two firms said they were surprised by Volkswagen's ability to holds its own despite the scandal, noting that the automaker was able to squeeze out a 0.24% sales increase in October. But based on the automaker's November performance, that grace period might have come to an end.

“Obviously, VW is facing some pretty tremendous challenges right now, and a 24% drop is certainly something you can’t ignore,” said Alec Gutierrez, senior analyst for Kelley Blue Book. “I think once the fix is in place and the vehicles are available for resale, there’s still a big question whether or not they permanently impacted consumer perception of their diesel cars.”

Volkswagen and Gutierrez attributed much of that drop in unit sales to the manufacturer’s decision to halt sales of vehicles equipped with its TDI diesel engines. Gutierrez noted that TDI vehicles accounted for 20% of Volkswagen’s sales prior to the scandal.

“There’s the possibility that the negative perception from consumers will extend beyond TDI. I think that’s the most apparent that we’re seeing right now,” Gutierrez said. “We do know that they had ramped up incentives to clear out some of the '15 model-year gas engine cars, which help to potentially offset and mask the potential impact to their gas engine cars.”

Looking toward the future, Michelle Krebs, senior analyst for Autotrader, said that the manufacturer’s mostly small-car portfolio could also hamper its recovery. Even before the scandal, she said that the manufacturer was on a downward trend because of its product mix. One of Volkswagen’s only bright spots in November was its Tiguan, with sales of the compact sport utility vehicle increasing 87.7% from a year ago.

Not having a wider portfolio of sport utility vehicles means they’re missing out on that valuable market, Krebs said.

More Auto Finance

Industryby StaffAugust 15, 2024

The Risk When the Customer Is Not in the Dealership

Take this series of steps to help protect your business from fraud by this method.

Read More →
F&Iby StaffAugust 13, 2024

Auto Loan Access Keeps Falling

July conditions tighter for consumers despite average loan rate decline.

Read More →
F&Iby StaffAugust 12, 2024

Dealers Wary of AI in Auto Finance

Poll shows growing aversion to technology’s accelerating part in process.

Read More →
Ad Loading...
Auto FinanceJuly 25, 2024

Is the Death Knell Being Sounded for Dealer Financing?

There appears to be a regulatory target on auto dealer-provided loans.

Read More →
Industryby StaffJuly 24, 2024

Ferrari Calls Cryptocurrency Foray a Success

Carmaker will add the payment options in its European dealerships this month after introducing it in the U.S. last year.

Read More →
Industryby StaffJuly 16, 2024

New-Vehicle Affordability Is Up

June conditions, including best average loan rate in a year, make buying more likely.

Read More →
Ad Loading...
Industryby StaffJuly 12, 2024

Pandemic-Era Prices Affect Trade-Ins

New buyers, especially those with EV trade-ins, are feeling the brunt of depreciation as market normalizes.

Read More →
Industryby StaffJuly 1, 2024

Auto Credit Crunch Tightens

Borrowers taking on more debt, moving many into delinquent territory.

Read More →
Auto Financeby StaffJune 19, 2024

New Cars Within Easier Reach

Affordability metrics improved in May as lending costs ebbed, finances flowed more freely.

Read More →
Ad Loading...
Auto Financeby Hannah MitchellJune 13, 2024

A Good Deal

Rising auto loan delinquencies, though bad news, could be another opportunity for agents to help dealers come down from pandemic highs.

Read More →