Published on September 1st, 2018 | by Daniel Sherman Fernandez


Volkswagen Vehicles Mostly Can’t Meet New Tougher Emission Laws

Volkswagen Group has just reveled that only half of its core VW models in Germany are compliant with a new, much tougher emissions testing regime.Cars in the European Union must comply with the new Worldwide Harmonized Light Vehicle Test Procedure (WLTP) starting September, but Volkswagen has only gained regulatory clearance for seven of its 14 main model lines.

Volkswagen’s top-selling Golf model is among the vehicles still waiting to be cleared by authorities. Shipments of cars are expected to slow down in September and October, but pick up again in the final two months of the year.

Automakers including Daimler, Volkswagen and supplier Valeo have cut profit expectations, blaming a slowdown in global sales triggered in part by delays getting vehicles certified to the new standard. Analysts at Evercore ISI said the WLTP delays at the VW brand appear to be under control since the automaker has not resorted to heavy discounting to keep sales flowing. Nonetheless delays will cause profitability of the brand to drop to around 2% in the third quarter, from 5.5% in the second quarter.

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