Volkswagen Mismanages Dieselgate Even More

2013 Volkswagen Beetle TDI badge (Credit: Volkswagen)

Just when it looked like Volkswagen was about to start moving past the whole Dieselgate scandal, things seem to be getting even worse. Kicking off the latest round of events were reports in a number of German newspapers that the so-called defeat devices in TDI models were an “open secret” in the company, countering claims that on a few “rogue” engineers were involved in the deception.

Instead of fessing up, VW has decided to discredit a whistleblower’s report. CEO Matthias Muller is basically asking everyone to trust that these claims are false, while refusing to release anything about an internal investigation until after an annual shareholder meeting in April. In the US, it has brought on a new chief attorney and is planning to open an office in Washington, D.C. to increase its influence with the government.

The VW Group keeps letting everyone know the defeat devices were legal in Europe, where the majority of TDIs are sold. Several reports fly in the face of this claim. Even if the measures didn’t violate European laws, they still are considered unethical by many, and that’s hurting the company’s public image.

Autolist Volkswagen Dieselgate infographic (Credit: Autolist)

Autolist polled people in all 50 US states about their perceptions of Volkswagen. Among the results, 62 percent of the respondents found the environmental impact from Dieselgate to be very severe, with another 29 percent saying it’s somewhat severe. Quite a few people said they possibly will reconsider buying a Volkswagen in the future and have a more negative view of the quality of the automaker’s vehicles.

Autolist VW Dieselgate infographic (Credit: Autolist)

Another result of the Dieselgate crisis, according to preowned sales data compiled by Autolist, is Volkswagens are sitting on lots longer. While the average vehicle stays on the market for 97 days, scandal TDIs sit for 166 days or 71 percent over the average. Even gasoline-powered VWs aren’t moving quickly at 110 days on the market. That translates into lower profits on Volkswagens, with Autolist estimating over $20 million in financial losses for dealerships.

The second-largest VW Group shareholder is pressuring the automaker to reveal all details about how Dieselgate and its origins. That would be a change, because the company hasn’t been forthcoming about information, like the fact that 3.0-liter TDI engines also had defeat devices.