VW offers 6-year warranty to win back US customers

By REUTERS | 13 April 2017


Atlas.


NEW YORK: Volkswagen AG is trying to win back American customers after its diesel emission scandal with SUV warranties that it said will be the longest in the United States.

Ahead of the New York auto show, the world's largest automaker said Tuesday it will offer a six-year, 72,000 mile (115,872km) warranty on its new 2018 Atlas and 2018 Tiguan sport utility vehicles that go on sale later this year.

"This warranty further addresses the needs of American buyers head-on," said Volkswagen Group of American chief executive Hinrich Woebcken.

VW said most other major rivals offer a 36,000 mile (57,936km), three-year warranty on similar SUVs. The longest warranty is now offered by Hyundai Motor Co and its Kia Motors Corp affiliate. That warranty extends 60,000 miles (96,560km) or five years. The powertrain warranty is 100,000 miles (160934km), but it only lasts five years or 60,000 miles if transferred.

Tiguan.
Tiguan.


The German automaker has been struggling to recover since it admitted in 2015 the company installed secret software that allowed vehicles to cheat emissions tests for six years.

The new VW warranty is twice as long as the current three-year 36,000-mile warranty on the Tiguan. The Atlas is a new model.

VW brand US sales this year are up 10 percent this year, but fell 8 percent in 2016 to 323,000 vehicles after falling 5 percent in 2015. The automaker halted all US diesel sales in late 2015.

"The American people are full of forgiveness. All you have to do is say you are sorry and give them a deal," said Jackson, who heads the largest US new car dealership chain. VW has "to give a price that reflects that you are asking for forgiveness."

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

In total, VW has agreed to spend up to US$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 US vehicles.

In a related development, Daimler AG's Mercedes-Benz USA chief said the German automaker has not decided whether to resume selling diesel vehicles in the United States. The German automaker has not received approval from the US Environmental Protection Agency to sell 2017 model diesel vehicles.

Dietmar Exler, president and CEO of Mercedes-Benz USA, told reporters at the New York auto show, that the company's engineers are in talks with EPA over the diesel vehicles. He said he was not aware of the status of those talks.

Before the EPA declined to approve 2017 model diesel sales, Mercedes-Benz diesels accounted for just 2-3 percent of US sales, Exler said. "No decision made one way or the other," on the future of diesel sales, he added.

Exler said the automaker plans a big boost in electric vehicles, adding 10 new EVs by 2025 worldwide, including 7 or 8 coming to the United States. "That's going to be the big focus going forward," he said.

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