Volkswagen, and the Price of Lying
Volkswagen is facing scrutiny, official sanction and lawsuits over the recent revelations that the German automaker fudged the emissions testing on their diesel models bound for the U.S. market. But the damage to the Volkswagen diesel brand can already be seen, and measured.
Kelley Blue Book is reporting that that average auction prices for Volkswagen diesel vehicles has already declined just four weeks after the diesel emissions scandal was revealed.
Shopping activity for diesel Volkswagens on the kbb.com site has also declined, the company reports.
KBB said that the average auction price for Volkswagen diesel models have declined by almost 16% since the news broke of the emissions crisis, while new-car shopping activity for affected Volkswagen TDI models is down by 2.4%, on average.
This crisis of confidence also seems to be affecting non-TDI Volkswagens: KBB said that the average auction price for the brand’s gasoline-powered vehicles is also down, though by just 2.9%.
While Volkswagen’s legal and regulatory-compliance costs for dealing with this matter will no doubt be steep, there may indeed be a bigger price to be paid in lost consumer trust, and tarnished reputation. Only time will tell.
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