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Bosch: Diesel demand still strong, despite VW scandal

Like an auto racer's results on the circuit, Volkswagen's recovery from its diesel-emissions scandal may well depend on spin control. That's what Bosch Chairman Volkmar Denner said in recent remarks at an event in Germany, Reuters reports. Bosch is a major VW supplier, of course, so it does have some skin in the game. Denner said he hasn't seen signs that demand for diesel vehicles has fallen yet in the wake of a scandal in which software in VW diesels was programmed to game emissions-testing systems. Denner says the ultimate impact on diesel sales will depend largely on the "campaign" VW will use to assure the general public that its diesels remain a viable way for drivers to boost fuel economy and lessen their impact on the environment. Of course, there have been hints that VW may pivot to more electric vehicles and distance itself away from diesels in the coming years. As a VW supplier, Bosch has been connected to the diesel scandal, it has repeatedly said that the problems were all VW's fault. Europe's biggest automaker lost its CEO in the wake of last month's scandal and has set aside $7.3 billion to address the issue. As many as 11 million VWs may have been programmed with the cheating software. Governments around the world are trying to address the issue. France may eliminate diesel-fuel subsidies, while all VW diesels in Australia have been recalled. And California has given VW until November 20 to detail how it would fix the problem. Related Videos: Image Credit: AP Photo/Michael Sohn Green Volkswagen Emissions Diesel Vehicles vw diesel scandal

VW's credit ratings could take a beating

In addition to a significant drop in its share price already, Volkswagen's diesel emissions scandal is continuing to have major financial repercussions on the German automaker. According to The Detroit News, credit rating agencies like Standard & Poor's and Moody's changed their forecasts on the company to negative, and Fitch has considered doing so, as well. Volkswagen appears to have the money to cover the costs of this ordeal, but the agencies question the effect that this has in the long term. "Moody's concern, however, is that Volkswagen's alleged breach of US environment rules and, especially, the process by which that breach occurred, will have an adverse effect on its reputation and credibility within the global passenger car markets," the company wrote in a note to investors, according to The Detroit News. VW has initially set aside $7.25 billion to fix things, but the potential shakeup of top executives has caused some investor uncertainty, too. The actual costs for VW to deal with this scandal are still unknown. In the US, the Department of Justice has begun a criminal investigation, and with other automakers the government has settled for $900 million against General Motors and $1.2 billion against Toyota. Attorneys general in 29 states have started looking deeper, according to The Detroit News, and regulators in Europe, South Korea, and Canada have commenced their own probes, as well. Related Video:

VW confirms new TDI for second half of 2014 in Golf, Jetta, Passat and Beetle

Diesel lovers rejoice. Volkswagen is bringing the latest iteration of its 2.0-liter four-cylinder diesel engine - dubbed the EA288 - to the 2015 model year Golf, Jetta, Passat, Beetle (2013 model pictured above) and Beetle Convertible, and the cars will be on sale in the second half of 2014.
While it shares its moniker with the old diesel, the new engine produces 150 horsepower, a 10-hp boost, and 236 pound-feet of torque. VW promises improved fuel economy as well, but it hasn't announced specifically what amount yet. The company claims that despite the same displacement, only the bore spacing is shared with the previous version. The mill includes new features like exhaust gas recirculation, an intercooler integrated into the intake manifold and low-friction camshaft bearings.
VW Group of America has had great success with diesels in the US recently. Vee-Dub and Audi sold 105,899 diesel-equipped models in 2013. It was the first time the group ever sold over 100,000 diesels in a year, and they accounted for 24 percent of sales. Scroll down to read the full press release about the announcement.