Sunday, May 28, 2006

Volkswagen to pull 3 TDI models for 2007

Text from Detroit Free Press.
Volkswagen of America will lose hot-selling diesel models of several of its most popular cars as the automaker catches up to new federal emissions standards that take effect this fall.

VW will drop the diesel versions of its Jetta, Golf and Beetle models for the 2007 model year, which begins this fall. The new U.S. limits for nitrogen oxide emissions are among the most stringent in the world.

VW has promoted its fuel-efficient diesel engines heavily this year as a way to beat high gasoline prices. The frugal engines can boost a car or truck's mileage as much as 35% compared with a similar gasoline engine.

VW's diesel sales have boomed in 2006, helping propel the German brand to a 20.4% increase in U.S. sales. Diesels accounted for 22.7% of VW's U.S. sales for the first four months of 2006, nearly twice their traditional 12%, VW spokesman Steve Keyes said.

"They are becoming a significant part of our business, so it's disappointing," Keyes said. "If diesels continue to contribute 20%-22% of our sales, this has some significant impact on us."

VW has credited its surging U.S. sales to diesels and the addition of new models like the Passat midsize sedan and Jetta compact sedan.

VW will offer a diesel version of its Touareg SUV in '07, and the company plans to build extra '06 diesel Jettas, which it hopes to sell well into next year.

A new diesel Jetta that meets emissions standards in all 50 states should be available for the 2008 model year.