VW News: As the Diesel Emits: Volkswagen Cuts Back On Trims and Variants As A Way To Save Cash

[William Maley]

Volkswagen is trying to save as much cash as they can to help offset the upcoming fines and penalties due to the cheating devices they fitted to a number of diesel vehicles. We have reported that Volkswagen is in the process of freezing and reevaluating a number of projects. Now it seems the German automaker is making cuts in the trims and variants it offers.

 

Bloomberg reports that Volkswagen will be cutting back on the number of trims and variants that it offers. Bernd Osterloh, a supervisory board member at Volkswagen says the move will cut a fair amount of complexity and costs. How much are we talking about? About $1.9 billion Euros (about $2 billion).

 

“We from the works council have long flagged the huge range of model variants and different components. That brings enormous complexity and adds to costs, for example, for logistics. We can take out costs there on a large scale and don’t have to talk about job cuts,” said Osterloh.

 

Source: Bloomberg

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[David]

Interesting read, sounds like this is being used to finally kill off trim lines that really do not make sense or profit. Course I wonder how much they will have to spend to cancel contracts, but this should help them clean up a messy product line.

[Drew Dowdell]

Say bye to the Beetle

[regfootball]

Passat has S model, Wolfsburg, SE, SEL, and possibly the Sport and maybe one other.  And then 3 engines.  But thats what you get when you want big sales in volume segments. 

 

So does this mean manual trans will get cut on a lot?  And will they consolidate their automatic choices?

 

Gotta wonder if the Germans won't take to a little US backlash.  The EPA busted this, at some point the German fans will go, 'is emissions and mpg really worth what has been done to this German company'.

[David]

Passat has S model, Wolfsburg, SE, SEL, and possibly the Sport and maybe one other.  And then 3 engines.  But thats what you get when you want big sales in volume segments. 

 

So does this mean manual trans will get cut on a lot?  And will they consolidate their automatic choices?

 

Gotta wonder if the Germans won't take to a little US backlash.  The EPA busted this, at some point the German fans will go, 'is emissions and mpg really worth what has been done to this German company'.

I do not think they will have a choice as Germany is already having a major problem with acid rain and destruction of the forests due to it. The German gov is working to change out of diesel mode and into green mode. I would expect a drop in diesel and manuals.

[daves87rs]

Say bye to the Beetle

 

 

Maybe, but even with lower sales it is pretty much their icon in the US. They need all the good press they can get....thinking quite a few diesel models will get cut though.....

[Suaviloquent]

What they need is what they sorely lack. Trim's don't change the underlying vehicle, so seeing them gone is good, but not great.

 

Competitive vehicles at a competitive price. With the big hit to diesel, and the fact they're behind everywhere else, shows in their inability to resolve the present issues:

 

How do they make investment into VW products in America worth it?

 

Americans buy everything from the VW Group in huge quantities in the Group other than VW itself.

 

VW Group is going to decline now, and TDI is probably forever tainted. 

 

I really want them to do well, I think they're a brand that should. But they're not going to go anywhere by half-assing here in the States or trying to nickel and dime customers based on a antiquated belief of superior German engineering in mass-market segments; the same customers who buy Camcords, Fusibus, and the like.

[regfootball]

now GM diesel can succeed by playing it straight and not having to have big market share at the start.  They can literally make the diesel offerings small volume and just build their own grass roots base over time.  I really can't wait to see how good the 17 cruze diesel is.  That car could lay the foundation to building a diesel following for Gm to grow over the years.

[Suaviloquent]

Exactly.

 

But it was VW as an organization that was not setting reasonable expectations.

 

Basically Piech ordered for maximum reductions in emissions without a single cent being spared to equip vehicles with the necessary technology and components.

 

GM is probably just building diesels with the efficiency and emissions on par with where VW would have been now or within one calender year if they hadn't cheated, or really had reasonable expectations and an understanding that they can't compromise the vehicle, and certainly can't build it to a price.

 

But I expect the Cruze diesel to be again, limited to the higher trims. They're going to sell the Whisper Diesel like how they sell the Duramax in the Canyonado trucks.