Volkswagen Will Lower Prices to Better Compete in US Market

Following an agreement with dealers earlier this week, Volkswagen is planning to cut prices in an attempt to increase sales in the US.

Volkswagen “is looking at this with a volume mindset,” Alan Brown, chairman of VW’s US dealer council told Bloomberg. “We are getting the product we’ve been asking for.”

The price cuts are part of an attempt to win a bigger share of the American market, a region where VW typically has struggled. Even before the scandal the car maker was keenly searching for ways to sell more cars in the States.

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And that’s part of what caused dealers so much strife. Before the scandal, dealers were asked to grow their dealerships to prepare for a big sales push, but since the scandal deliveries have fallen dramatically.

VW has agreed to a settlement with its dealers reportedly worth $1.2 billion. The agreement is still officially confidential, though, so whether this number is accurate and what the “additional benefits” hinted at are remains to be seen.

This article originally appeared on VWvortex.com

[Source: Bloomberg]