Volkswagen achieves 6 million vehicle sales in 2017, with close to a million units of the Golf model sold
In the automotive world, the Dieselgate scandal was a storm that shook Volkswagen to its core. Revealed in 2015, the scandal exposed the German automaker's deceit in manipulating emissions data for millions of diesel-powered cars.
The fallout was immediate and profound. Volkswagen reported a quarterly loss of €2.52bn in the third quarter of 2015, a stark contrast to its usual profits. The company spent around £5 billion to buy back approximately 350,000 diesel-engined cars in the U.S. alone, with these vehicles now being stored in 37 secure facilities around the country. Over 300,000 of these bought-back cars remain in storage.
The scandal also caused Volkswagen to abandon its "Clean Diesel" mantra and led to the dropping of its iconic slogan "Das Auto" in response to the crisis. The company's advertising was affected, with a shift towards more transparent and honest messaging.
However, Volkswagen has not let the crisis define its entire future. The company sold 6 million cars in 2017, with the new Tiguan selling over 700,000 units. The corporate leadership, under the management of Herbert Diess since 2018, has accelerated the focus on electric vehicles and SUVs as part of its transformation strategy.
By 2020, Volkswagen will have 19 SUVs in its lineup and aims to have one million Battery Electric Vehicles (BEVs) on the road by 2025. From 2020, the company plans to deliver a complete family of electric models, starting with the I.D., I.D. Crozz and I.D. Buzz.
Despite the costs associated with the Dieselgate crisis, Volkswagen has been on a product and sales offensive. The company delivered over 60 models at 50 plants in 14 countries in 2017. Production and logistics boss, Thomas Ulbrich, plans to continue this product offensive with the whole VW range renewed in the next few years.
The Dieselgate crisis has undoubtedly caused Volkswagen significant grief. However, the company is determined to learn from its mistakes and move forward, focusing on transparency, honesty, and innovation in its vehicles. With its renewed focus on electric and SUV models, Volkswagen is looking to regain the trust of its customers and reestablish itself as a leader in the automotive industry.
