While carmakers were displaying their latest ware at the Los Angeles Motor Show, VW America chief Michael Horn was busy apologizing to customers and dealers for the deceptive software used by VW to sidestep US emission requirements on diesel cars. It is not clear how this apology was received but early indications strongly suggest that the days of the diesel engines in passenger cars in America could be numbered.
Horn admitted that an apology is not enough. Fixing the problem is not going to be easy. California regulators are waiting to hear a remedy plan from VW for the four-cylinder engines which emit as much as 40 times the allowed amount of nitrogen oxide. There are separate allegations associated with the six-cylinder engines. The company is still investigating its own discovery that hundreds of thousands of cars misstated information about carbon dioxide emissions.
Michael Krebs, an analyst with Auto Trader, suspects that VW has no clear plan yet as to how to fix the problem. He said “I am not sure they have the answers.” He adds “Yes, you have to apologize. Yes, you have to continue doing business. But what everyone’s waiting for is a comprehensive plan.”
Mark Reuss of GM adds “I am not aware of an easy fix.” His company resolves the issue by adding urea to diesel cars.
Meanwhile, other car executives at LA were not defending their diesel models but rather discounting their significance. Ludwig Willisch, CEO of BMW North America, said that the issue has not impacted his company at all, adding “Diesel is only six percent of our business.”
Steve Cannon, CEO of Mercedes-Benz USA added: “There certainly will be fallout in the market from VW, but….we can just sell gasoline SUVs.”
Most American consumers would agree that buying a diesel car now is not a good investment. In addition to the tainted image of polluting the environment, there is the resale value to consider.
The apology tour may not be enough to save the diesel car in America.
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*Adel Murad is a senior motoring and business journalist, based in London.
Email: [email protected]
