Volkswagen has revealed it will no longer sell diesel vehicles in the United States.
The car maker suffered international embarrassment after it was found to have cheated emission tests on its diesel vehicles around the world.
The company said it would now focus on electric and sports utility vehicles.
The move was announced by VW brand chief Herbert Diess.
Diesel vehicles had made up a quarter of the German auto giant’s US total sales – around 10-11,000 of the firm’s total sales of 43,000 vehicles this year, down from 48,000 in 2015 before ‘dieselgate’.
Volkswagen has announced it will no longer sell diesel vehicles in the United States following the revelations that it cheated on emission tests for some of its cars around the world. Pictured is the Volkswagen Golf VII
Volkswagen has already agreed to pay billions of dollars in fines and compensation payouts to US customers since admitting last year to cheating on federal diesel emissions tests.
Mr Diess told German business newspaper Handelsblatt: ‘At the moment we assume that we will offer no new diesel vehicles in the U.S.’
Volkswagen showcased its Atlas SUV, built expressly for the U.S. market, at the Los Angeles Auto Show last week.
He said success in the Americas was vital to reviving the core Volkswagen brand that accounted for 59 percent of the German group’s auto sales in 2015 but only 16 percent of group underlying operating profit. The company will continue to sell diesel cars in European markets.
VW is facing a raft of lawsuits around the world relating to its cheating of diesel emissions tests.
Earlier this week The Mayor of London wrote to Volkswagen imploring the car giant to ‘fully compensate’ the capital’s residents affected by the emissions scandal.
Sadiq Khan has called on the German firm – known as VW – to reimburse Transport for London (TFL) some £2.5 million in lost Congestion Charge revenue from vehicles which were unknown to be contributing to the capital’s pollution.
Sadiq Khan has called on the German firm to reimburse Transport for London (TFL) some £2.5 million in lost Congestion Charge revenue
The car giant – which makes the Touareg and Polo models – later admitted that 11 million vehicles worldwide were fitted with software which switched engines to a ‘cleaner mode’ during testing
It has been more than a year since the Environmental Protection Agency in the US said 482,000 Volkswagen-built cars were fitted with sophisticated software which detected when the vehicles were undergoing official emissions testing and switched the engines to a cleaner mode.
The car giant – responsible for models such as the Polo and Golf – later admitted that 11 million vehicles worldwide were fitted with the software. It set aside 6.5 billion euro (£4.7 billion) to deal with the cost of the scandal.
Mr Khan said: ‘I want to see a proper commitment from them to fully compensate the thousands of Londoners who bought VW cars in good faith, but whose diesel engines are now contributing to London’s killer air.’
The mayor has also asked VW for a progress update on their commitment to re-programme the defeat devices in affected vehicles and the expected completion date.