5 Fall Outs From The Volkswagen Dieselgate Saga

VW has announced that it is slashing budgets across the business to cover the estimated €30bn (£21bn, $32bn) costs associated with the Dieselgate scandal, but what does that mean for the company? Here are some of the losers now VW is pulling out cash
5 Fall Outs From The Volkswagen Dieselgate Saga

1. Next-gen Golf will re-use many parts

5 Fall Outs From The Volkswagen Dieselgate Saga

According to a report by Reuters, Volkswagen is looking at re-using as many parts as possible for its next generation Golf. Doing this could easily help the company save millions of Euros, however is does come with a small risk of losing ground on its rivals. Volkswagen is in the fortunate position of already having a class leading car, so it can arguably afford to slow its progress into the next generation.

On the down side, customers may be less willing to part with cash to upgrade to a new model if it’s largely identical to the one they already have. It’s a tight rope that VW will have to walk very carefully.

2. No managerial promotions in 2016

5 Fall Outs From The Volkswagen Dieselgate Saga

Bad news for bigwigs at the German manufacturer. As part of its attempts to cut costs, Volkswagen is freezing promotions of staff in managerial positions. This does seem like something of a token gesture, though. VW is a large company, so while the relatively small wage increases this nullifies will soon add up, it likely won’t make much of a dent in the €30bn Euro cost of the scandal.

In fact, a works council chief called the decision “merely symbolic”, saying the move would only affect employees. He also expressed concern that, in a “cost cuts at any price” company culture, manager bonuses could be unfairly impacted.

3. Football team sponsorship could be cancelled

5 Fall Outs From The Volkswagen Dieselgate Saga

It is reported that Volkswagen spends about €1.5m (£1m, $1.6m) on football team sponsorship every year, but that looks set to be axed under its new investment budget. With anything that’s ‘not essential’ at risk of getting chopped, it’s easy to see why sponsorship deals may be cut.

That’s exactly what’s set to happen, according to German newspaper Bild am Sonntag. Currently, Volkswagen sponsors Bundesliga sides Hannover 96, Werder Bremen and Schalke 04, and Second Division side 1860 Munich.

4. New Volkswagen design centre in Wolfsburg put on hold

5 Fall Outs From The Volkswagen Dieselgate Saga

In a move that will save a massive €100m, VW has revealed that it will be putting the building of its new design centre in Wolfsburg on hold. The centre was intended to be a flagship design studio for the company, but it is now deemed an unnecessary extravagance.

5. Electric Phaeton successor delayed

5 Fall Outs From The Volkswagen Dieselgate Saga

Recently we heard that Volkswagen was planning to bring a successor to the cult hero Phaeton, in the form of an electric vehicle. It would’ve been a bold but understandable move; bringing silent EV power to the luxury market seems like a no-brainer.

Unfortunately a new electrified model of an already niche product just isn’t likely to reap the kind of profits VW requires, so the Phaeton EV project has been put on ice.

Sources: PRWeek, Reuters and Car Magazine

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Comments

Anonymous

New Golf will reuse most of the parts? are you telling me this don’t happen now? Golf 6 and Golf 7 the biggest difference is the head and tail lights. By the way the Golf is less and less the class leading, the competitor are getting much better much faster..

11/27/2015 - 19:02 |
5 | 5
R9Z6001

In reply to by Anonymous (not verified)

Actually the mk7 is a completely new car, the mk5 and mk6 are much more similar and share a lot of parts

11/27/2015 - 19:13 |
12 | 0
Arno

In reply to by Anonymous (not verified)

No the biggest difference between the mk6 and mk7 is everything. The car is built on a completely new platform, how different do you want it to be?

11/27/2015 - 22:11 |
2 | 0
Legendary

Bugatti successor still on! - Good guy VW

11/27/2015 - 19:11 |
37 | 1

Well if they actually do it right this time they could make millions, so it makes sense.

11/27/2015 - 20:02 |
3 | 0
Anonymous

hopefully the fallout from this will make other companies either not consider cheating the tests or quit while they are ahead and work on how to legitimately pass them.

11/27/2015 - 19:37 |
3 | 0
Arno

In reply to by Anonymous (not verified)

They’re all doing it, and they’re all going to fall into the same pit probably.

11/27/2015 - 22:09 |
1 | 0
Legendary

#6 “global warming”

11/27/2015 - 19:37 |
8 | 2
Anonymous

Don’t forget they were talking about buying Red Bull F1

11/27/2015 - 19:56 |
4 | 0
Anonymous

Not sponsoring football teams any more. You mean improving your image to the millions of people that don’t like those teams?

11/27/2015 - 21:38 |
1 | 1
Anonymous

In reply to by Anonymous (not verified)

They might also cut sponsoring of Formula Student team. That’s sad.

11/28/2015 - 13:56 |
0 | 0
Anonymous

I just got a 1500+€ bill for vw for servicing the golf yesterday. Just saying

11/27/2015 - 21:55 |
1 | 1
Anonymous

In reply to by Anonymous (not verified)

what the hell did they service?

11/27/2015 - 22:21 |
0 | 0
DL🏁

Yeah, dieselgate is a sad thing for VW fans like me (and fans of other VAG brands), because we probably won’t see many new cars in the next 3-5 years. VW will probably rely on facelifting their current models, without much innovation. Still looking forward to mk8 Golf though - a lot of investment into developing the car took place before dieselgate, so hopefully we will see another great car.

11/27/2015 - 22:49 |
2 | 0

At least we get the used ones cheaper :)

11/27/2015 - 23:34 |
0 | 0
Miguel Teixeira

They sponsor many football teams, but they also own a football team, Vfl Wolfsburg, i think 95 % of the team belongs to the Volkswagen group, correct me if i wrong.

11/27/2015 - 23:15 |
0 | 0
Elias 3

does them Scania trucks need emission cheat?

11/27/2015 - 23:33 |
0 | 0

Probably not since the emission test for rigs is different then cars

12/09/2015 - 00:42 |
0 | 0