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Transatlantic cable

March 2016

49

www.read-eurowire.com

To that end, he added, “We are now creating a di erent and

better company, a new Volkswagen.” On leaving Detroit,

Mr Müller would head to Washington to meet with federal

regulators about the company’s timeline for xing nearly

600,000 diesel-powered cars in the USA (among 11 million

a ected worldwide) equipped with devices that enabled them

to emit 40 times the amount of pollutants allowed by federal

rules.

The change in tone from that of the VW CEO who visited

the Detroit show in 2011 was quite evident. Then, Dr Martin

Winterkorn, who retired in the wake of the cheating disclosures,

had declared a goal for Volkswagen brand sales in the USA

market of 800,000 vehicles by 2018.

In the event, while total USA auto sales rose six per cent in 2015

to set an annual record of 17.5 million vehicles, Volkswagen

brand sales sank ve per cent, to 349,000 vehicles – just slightly

over two per cent of that market.

†

Even before the emissions crisis erupted, Volkswagen

was having trouble competing in the USA with market

leaders like General Motors, Ford Motor and Toyota. But,

according to Mr Vlasic and Ms Chapman, few in the industry

think Volkswagen, despite the huge nancial liabilities it

now faces, would ever pull out of the USA, where it has

spent billions of dollars building a dealer network and is

expanding an assembly plant in Tennessee.

“For them to back away from the US market is not realistic,”

Karl Brauer, an analyst with the research rm Kelley Blue

Book, told the

Times

. “They just cannot cede this market to

their competitors.”

Two VW executives based in the USA, who spoke to the

reporters on condition of anonymity, shared that view,

saying there have been no internal discussions about pulling

out of the American market. And Mr Müller himself declared

in January, “The USA is and remains a core market for the

Volkswagen Group.”

†

How the rehabilitation e ort plays out remains to be seen.

Meanwhile, another interested party struck a de ant-hopeful

note that will likely be heard again.

“A lot of manufacturers have gone through major incidents

when it comes to recalls,” the general manager of a

Volkswagen dealership in Perrysburg, Ohio, told the

Times

.

“Yes, VW cheated the system. But the vehicles didn’t break

down. And there was no loss of life.”

Although aviation was left out of the climate

agreement adopted in Paris in December,

reducing aircraft emissions is a priority

In any discussion of emissions pollution it must not be

overlooked that the airplane poses a greater threat than the

automobile. Although the Air Transport Action Group, an

industry organisation, estimates that emissions per seat-mile are

down 70 per cent from the 1960s, when jets were introduced,

the tremendous growth of the airline industry has resulted in

higher total emissions.

With commercial aviation accounting for about two per cent

of the global total of carbon dioxide emitted annually by