VW US chief says sales will recover, announces new SUV

  • VW US chief says sales will recover, announces new SUV

VW US chief says sales will recover, announces new SUV

The new warranty coverage provided by VW surpasses the industry-leading 60,000 mile or five years warranty coverage offered by competing auto manufacturers Hyundai Motor Co. and Kia Motors Corp.

The German automaker announced that its all-new 2018 Tiguan and Atlas SUVs, will come with warranties that beat competitors like the Honda CR-V and Ford Explorer. The longer bumper-to-bumper warranty is also transferable to a subsequent owner. All U.S. sales of diesel vehicles manufactured by Volkswagen were stopped in 2015 once the emissions scandal became public.

He said the SUV, which does not have a name yet, will be a little smaller than the Atlas. The powertrain warranty is 100,000 miles, but it only lasts five years or 60,000 miles if transferred. The world's second-largest automaker sold close to 600,000 vehicles equipped with "defeat devices" that were created to cheat emissions tests.

Hinrich Woebcken (VEB-Kin) estimates VW sales rose 10 per cent in the first quarter when the rest of the US market is down almost 2 per cent.

In March Volkswagen pleaded guilty as part of a settlement over the automaker's diesel emissions scandal.

The company said on Tuesday that it would continue selling the current Tiguan as the "Tiguan Limited" for several years even as it plans to offer a completely new, larger version later this year. VW has "to give a price that reflects that you are asking for forgiveness".

In total, VW has agreed to spend up to $25 billion in the United States to address claims from owners, environmental regulators, states and dealers and offered to buy back about 500,000 polluting USA vehicles. Chief Executive Officer Mike Jackson told CNBC News in an interview.