Although it has laid out plans to address the emissions issue in its unsold diesel vehicles, car maker Volkswagen (VW) has yet to get past regulators – and the delay is making dealers antsy.
Dealers across the US have been holding onto nearly 12,000 3.0 liter TDI (turbocharged direct injection) vehicles in their lots for nearly 10 months after a stop-sale notice from regulators following the emissions software cheating scandal that rocked VW.
VW is currently the largest diesel car seller in the US, and the hold on the sale of its vehicles represents a paralysis in 25% to30% of the market, Washington state VW dealer Matthew Welch said.
The car maker claims to have a fix, but it has to go through regulatory approval, the timetable for which is still unclear. According to sources, dealers will meet with the company next week to resolve matters on doling out settlement to buyers and a schedule for repairs of unsold inventory.
However, stop-sale orders are not unique to VW, as a wave of safety recalls hit the US car market. Newly launched models that enjoy huge demand are among them, as well as industry-wide actions, such as that against Takata’s air bags, which has affected a broad range of inventory.
VW recently reached a $14.7 billion settlement with US regulators and customers to address the emissions-cheating scandal that reversed its fortunes as a top car brand in the US.
