In terms of sales, Volkswagen had a good time last month as it dominated the sole sales. Even though the company is on a high due to its consistent sales, it has a lot to worry about. Due to the Dieselgate emissions scandal that took place a while back, the German automaker is still incurring the costs to cover it up. The profit through such sales is not adequate for the cost of the emissions scandal. Therefore the automaker is looking for alternatives to cut down on the overall costs of the company. In order to do so, the auto giant is planning to omit further plans of production of two of its models, the Volkswagen Beetle and the Volkswagen Scirocco.
This move clearly shows how deep the pit of trouble is for Volkswagen. This is in accordance with the fact that Volkswagen Beetle and Scirocco are considered to be famous names for the automaker. Despite this, the company is contemplating upon shutting down its production. This clearly indicates that Volkswagen is looking for desperate measures to cover the expenses of the emissions scandal. Under the pressure of cutting down costs, Volkswagen is now mainly focusing on its sport utility vehicles and electric vehicle programs. A spokesperson of the automaker has hinted on the closure of the production of both these vehicles. But a confirmation on the same is yet awaited.
Are low sales of Volkswagen Beetle and Scirocco causing this decision?
Recently at the 2017 Annual Session of Volkswagen, board member Arno Antlitz indirectly talked about discontinuing the production of the Volkswagen Beetle and Volkswagen Scirocco. He states that both these models have an emotional appeal to them. They might be an attraction for the customers but that doesn’t mean that the company has to continue the production of cars to the next generation as well. This shows that after the current iterations of these two models, there will be no update of their production. Earlier Volkswagen had other plans. The new Volkswagen Scirocco was going to be out in the market this year whereas Beetle would undergo electrification. All these plans are nullified now.
Antlitz said that the void of vehicles with an emotional value can be filled with upcoming electric vehicles. This was in regard to the discussion of replacing certain vehicles in the Annual Session. This means that the company believes that the sales of electric vehicles are more promising than the existing models. In the case of the Volkswagen Beetle, the sales are always slow. For example in the first quarter of this year, sales of only 5,774 units took place in Europe. On the other hand, Scirocco only received 2,054 bookings for the first three months of 2017. This is despite the fact that it is an innovative model.