Dieselgate has affected VW’s new car orders, labor boss says

#hashtags: #Volkswagen

Volkswagen is not selling its cars like hot cakes anymore, as the cheating scandal unsettled customers’ trust, VW’s top labor representative recently said. Not so long ago, Volkswagen cars were on top of the customer list. But the recent events made prospective buyers less confident about the Group’s cars and it is easy to understand the reasons behind such hesitations. VW’s sales have not been so drastically affected by the illegal software scandal, but the people’s trust has been shaken even more after the automaker admitted last month it understated fuel usage and carbon dioxide emissions. Therefore, as a consequence of its deceiving actions, VW is facing slowing orders for new cars, according to VW’s top labor representative. “There is caution in buying,” the German company’s works council chief Bernd Osterloh told reporters. “The CO2 issue has triggered a greater crisis of confidence (in VW products) than the nitrogen (emissions) issue.” The company said in the beginning of November it had manipulated the level of CO2 emissions in about 800,000 cars sold mainly in Europe, and it is expecting costs of at least 2 billion euros, including compensation payments to customers. The disclosure did not stop for diesel cars, as just two weeks later, VW said the CO2 cheating affected more petrol-powered vehicles than previously admitted. Osterloh, who also sits on the VW supervisory board’s influential steering committee, said there could be risks to jobs should the decline in orders persist. “Employment is safe provided we are selling cars,” he said. “If we sell no cars, it will get relatively difficult. We will have to look at incoming orders of the next days, weeks and months,” he added. Via Reuters