VW TDIs Lose Value, Bosch Plays Damage Control

2015 Volkswagen Golf TDI engine (Credit: Volkswagen)

In a market shift that surprises no one, the prices of used Volkswagen TDIs have gone down, according to a recent report from Automotive News. The publication says that Kelley Blue Book measured a 13 percent drop in value for United States auctions, versus a 2 percent drop for gasoline-powered VWs.

Bosch, which has strong ties with Volkswagen as a major parts supplier, is going on damage control. Chairman Volkmar Denner said that he sees no indications that diesel vehicle demand has dipped at all, despite the recent VW emissions scandal, according to a Reuters report. Bosch certainly has something to lose if VW TDI sales decline.

The noose is tightening around Volkswagen’s neck in the meantime. On top of offices in Italy and France having been raided by police lately, Germany has stuck it to the automaker by forcing a recall. Reportedly, VW wanted to voluntarily repair its diesel vehicles, but authorities said no. A Bloomberg report noted that such a move is unusual, especially considering it’s coming from Volkswagen’s home country, indicating that the government is tired of how slowly a solution has been coming.

Meanwhile, in the United States the EPA says it has a “long list” of questions about the presence of another software cheat which was discovered recently, a statement that was made recently in another report from Reuters.

Volkswagen dealers are staying surprisingly upbeat during the fallout from the Dieselgate scandal, as reported by Automotive News. Customers have been kept in showrooms with incentives, presumably preempting an apocalyptic scenario. Edmunds is predicting that the floor will fall out, citing info that indicates a decline in car shoppers even considering the VW brand. Kelley Blue Book says that traffic on its KBB.com site indicates fewer people are looking at Volkswagens, and TrueCar has reported a similar dip.

For now VW seems to be managing alright, but as the Dieselgate drama continues and governments take increasing regulatory action, things could change in a hurry.