Reuters - Video

Edition: US | UK | IN | CN | JP

video Finance Videos

Greener, not leaner: VW boosts US sales target

Friday, September 01, 2017 - 01:50

Volkswagen is launching a scrappage scheme for older diesel vehicles in Great Britain as it tries to lure buyers back post-dieselgate - while announcing ambitious new sales targets in the US. David Pollard reports.

▲ Hide Transcript

View Transcript

From the past, to the future ... VW taking another step to emerge from dieselgate ... By announcing it wants to boost SUV sales and US targets. It currently builds around 400 of these - its Atlas SUV - a day at its Chattanooga Plant. But could eventually double that - and add electric vehicle offerings. Brand chief Herbert Diess eyeing an increase in US market share to five per cent - from the current 1.9. It could be a hard sell. (SOUNDBITE) (English) BGC PARTNERS MARKET STRATEGIST, MIKE INGRAM, SAYING: "Yes, I think they perhaps got a tail wind from lower emission standards or the prospect thereof, yes, certainly lower gasoline prices in the U.S. are certainly going to help relative gas guzzlers. But you have to say that you know overall the car industry, the auto sales have actually been trending down in the US for the last couple of years." VW is to tempt UK consumers with a new scrappage scheme. They'll be offered a discount of up to 6,000 pounds for a new Volkswagen if they trade in an older diesel vehicle. Combined with a government grant, it could knock 10,000 off the list price of a new electric Golf. Germany already has a similar trade-in scheme ... And it may prove popular in a Brexit-hit British economy. (SOUNDBITE) (English) BGC PARTNERS MARKET STRATEGIST, MIKE INGRAM, SAYING: "VW sales have held up relatively well compared to the news flow over dieselgate over the last couple of years so it may well attract buyers particularly in an environment where consumers are starting to feel feel the pinch." The German carmaker is still under huge pressure to clean up emissions since its pollution cheating scandal. It's agreed to spend up to 25 billion dollars for US settlements alone - as it seeks cleaner, sunnier times ahead.

Press CTRL+C (Windows), CMD+C (Mac), or long-press the URL below on your mobile device to copy the code

Greener, not leaner: VW boosts US sales target

Friday, September 01, 2017 - 01:50