The German automaker announced that its all-new 2018 Tiguan and Atlas SUVs, will come with warranties that beat competitors like the Honda CR-V and Ford Explorer. The longest warranty is now offered by Hyundai Motor Co (005380.KS) and its Kia Motors Corp (000270.KS) affiliate. The factory employs more than 3,200.
"We specifically designed and built the all-new Atlas and Tiguan for American customers", says Hinrich J. Woebcken, president and CEO of Volkswagen Group of America.
But today in Chattanooga, company officials say the reporters misunderstood. that Volkswagen has not decided on where to build it. "We believe this warranty will lead to reduced cost of ownership for Volkswagen owners". The company suffered considerable damage to its reputation on a global basis in the wake of the diesel emissions scandal and is now seeking to redress this with a six-year, 72,000 mile warranty for two of its new SUVs. SUVs' share of USA vehicle sales rose to almost 40 percent in 2016 from 32.6 percent in 2014. The automaker halted all US diesel sales in late 2015.
In March of this year, Volkswagen pled guilty as part of a settlement over the automaker's emissions scandal, which largely involved its fleet of diesel cars and trucks.
In total, VW has agreed to spend up to $25 billion in the United States to address claims from owners, environmental regulators, states and dealers and offered to buy back about 500,000 polluting USA vehicles.
The 2018 Atlas arrives this spring and the 2018 Tiguan is scheduled to hit dealerships this summer. Nissan, however, does cover its continuously variable transmissions (CVTs) for 10 years or 120,000 miles. "The American people are full of forgiveness".
AutoNation (AN.N) Inc chief executive Mike Jackson said that an extended warranty could help win customers.