TBC Information Network

Teal, Becker & Chiaramonte offering valuable insights, impressions and commentary on today's financial and business world.

Is this the end of small diesels in the US?

Auto manufacturers are regularly shifting focus and trying to stay on the cutting edge in an effort to maximize revenues in the multi-billion dollar auto industry.  As consumer demands change, auto manufacturers must adapt.

Recently, Volkswagen experienced turmoil as a result of failed emissions tests and alleged knowledge of the shortcomings by the manufacturer.  The company faced backlash from government agencies and consumers alike.  The manufacturer has come to a series of agreements which will end up costing them approximately $15 billion to settle claims from the scandal, including $10 billion to buy back the vehicles from the owners of affected diesel cars, $2.7 billion to the EPA, and $2 billion for the Clean Energy Technology mandates.

In an effort to re-gain consumer confidence and boost sales, VW has decided to scale back its diesel engine push that it had been actively promoting.  The manufacturer has made a decision to change strategy and pursue other opportunities. Automotive News profiles the change and what lies ahead for the manufacturer.

TBC has a dedicated team of CPAs specializing in the automotive industry that meet monthly to discuss industry issues and changes that will affect our clients.