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VW to relax ambitious US sales targets?

The Volkswagen brand sold 407,704 cars last year, a 6.95-percent decline compared to 2012, and it's down a further 8.36 percent through the end of April 2014 compared to this time last year. In order to to put the sales football between its Strategy 2018 goal posts, the brand would need to add 100,000 more sales every year to achieve the lofty 800,000-unit target. Coming to grips with how unreasonable that is, VW US CEO Michael Horn has said, "For now, we have to have realistic targets."
The reasons for the brand's slow-down are imprecise, but lots of folks are throwing lots of reasons around. Last November, VW Group Chairman Ferdinand Piech told Bloomberg, "We understand Europe, we understand China and we understand Brazil, [but] we only understand the US to a certain degree so far." Analysts say the brand hasn't had midsize and compact SUV offerings, especially an overdue retail version of the CrossBlue, and the ones it does have are priced too high for their segments. It "didn't introduce enough new engines, or alternative technologies or model variants" for the Passat and Jetta. It devoted so many resources to China that the US market suffered. It was being outspent two-to-one on advertising by competitors. Its J.D. Power dependability ratings aren't high enough to overcome its past. It "has never really taken the US customer seriously." And so on.
There's still no official admission of defeat concerning the target, but reading between the lines there are some VW execs that appear to accept it won't happen short of some deus ex machina. Still,

Porsche says it found 'irregular' software as Germany recalls diesel Cayenne

BERLIN - German Transport Minister Alexander Dobrindt on Thursday announced a recall of Porsche Cayenne models equipped with 3-liter diesel engines after finding potentially illegal emissions controlling software in the vehicles. Dobrindt told reporters he was withdrawing certification for the vehicles, which will need to undergo a software update to regain legal status. Sports car maker Porsche AG is owned by Volkswagen, which in 2015 admitted to systematic manipulation of engine management software to cheat emissions tests. Porsche on Thursday said it had discovered "irregular" engine management software during an internal probe into emissions. Porsche also said it had agreed to recall the vehicles to fix the problem. "The producer will of course bear 100 percent of the costs," Dobrindt said. "There is no explanation why this software was in this vehicle." The minister said: "We have examined Porsche Cayenne vehicles of the 3 liter TDI Euro 6 Mark - during tests these vehicles deploy a so-called defense strategy, which isn't activated in real traffic." "In our view that is a kind of test recognition, which we regard as an impermissible deactivation strategy." "Even if there is a modern exhaust gas cleaning system in these vehicles, if this software is nonetheless there it is illegal, does not meet the legal requirements and needs to be removed," Dobrindt said. He also said that Porsche would quickly be in a position to bring the software into conformity with the law. Dobrindt also said there were some 7,500 vehicles of this type certified in Germany and some 22,000 certified in Europe. "We don't know how many are with dealers. These are the cars that fall under the certification ban." The Porsche Cayenne model shares components with a sister model, the Volkswagen Touareg. Asked about Volkswagen's Touareg model, Dobrindt said: "On the technical question, it is assumed that this vehicle has a similar parameter set but identical construction does not mean that the same software was used in it but it is assumed that the same software was used." He said the Transport Ministry was, however, checking that and a hearing with Volkswagen would show whether that was the case or not, adding: "The probability is high." Volkswagen CFO Frank Witter had no immediate comment about the Porsche recall on a VW earnings call also held on Thursday.

VW recalls 25k Jettas over low-beam headlight issue

Volkswagen has discovered an issue with the headlamps on its latest Jetta and is issuing a recall notice in conjunction with the National Highway Traffic Safety Administration to correct the issue. The problem revolves around the headlight control module, which has been found in certain instances to switch off the low-beam headlights when the high beams are turned on. Needless to say, that could result in insufficient illumination in the dark, so VW is moving to update the module's software. The issue only affects the new 2015 Jetta – specifically those manufactured between July 11, 2014 (which just happens to be this writer's birthday, thank you very much) and November 13, 2014. All in all, the Volkswagen Group of America estimates that encompasses 25,007 units in the United States, the owners of which can expect to hear from their dealers in the new year. RECALL Subject : Insufficient Headlight Output Report Receipt Date: DEC 15, 2014 NHTSA Campaign Number: 14V790000 Component(s): EXTERIOR LIGHTING Potential Number of Units Affected: 25,007 All Products Associated with this Recall close VOLKSWAGEN JETTA 2015 Manufacturer: Volkswagen Group of America, Inc. SUMMARY: Volkswagen Group of America, Inc. (Volkswagen) is recalling certain model year 2015 Jetta vehicles manufactured July 11, 2014, to November 13, 2014. Due to incorrect software within the headlight control module, the low beam headlights may turn off when high beam lights are turned on. As a result, the light output from the headlights may be insufficient. As such, these vehicles fail to comply with the requirements of Federal Motor Vehicle Safety Standard (FMVSS) No. 108. "Lamps, Reflective Devices, and Associated Equipment." CONSEQUENCE: Insufficient headlight output may increase the risk of a crash. REMEDY: Volkswagen will notify owners, and dealers will update the headlight control module software, free of charge. The recall is expected to begin in January 2015. Owners may contact Volkswagen customer service at 1-800-893-5298. Volkswagen's number for this recall is 57F6. NOTES: Owners may also contact the National Highway Traffic Safety Administration Vehicle Safety Hotline at 1-888-327-4236 (TTY 1-800-424-9153), or go to www.safercar.gov.