Volkswagen Passats at a dealershipVolkswagen's biggest dealer said today the future of VW in America rests on what the world's biggest auto manufacturer does in the next few days and weeks to address charges that it rigged emission tests on its diesel engines to meet pollution standards the car engines would have otherwise violated.
"The Volkswagen brand is at risk," Mike Jackson, CEO of Auto Nation, told CNBC today. "How it develops depends very much on how they respond to the crisis in the next few days, weeks and months."
As VW board meets today at the company's corporate headquarters in Wolfsburg, Germany, Jackson said it is important that VW step up to the problem, address it and make what are likely to be costly changes for the company. VW directors are reportedly deciding whether or not to renew the contract of Volkswagen CEO Martin Winterkorn.
On Sunday, Winterkorn said he deeply regrets the current emissions cheating scandal and said everything was being done to fully clear up the case as quickly as possible.
Corrupted VW emblem"It is absolutely shocking and hard to get your head around," Jackson said in a televised interview on CNBC's Squawk Box. "If you look at the scale of the deception over six years, 11 million vehicles involved, the challenges from the regulators starting three years ago, already having one recall last year that didn't really resolve the issue - it all points to a systemic failure."
Jackson, whose company operates six Volkswagen dealerships and three Audi dealerships affected by last week's EPA citation against VW, said Volkswagen's reputation has been tarnished and it will take time to regain the trust of diesel buyers in the U.S. who often bought their vehicles because they thought they were being environmentally responsible.
"It's going to be a long journey to re-earn your trust," Jackson said.
Auto Nation and other VW and Audi dealers can't sell Volkswagen diesel cars on their lots. VW represents only about 1 percent of all sales at Auto Nation, which is the largest automobile dealership in the United States.
The diesel vehicles which EPA contends Volkswagen rigged emission testing equipment on include Jettas, 2009 to 2015; Jetta SportWagen TDI, 2009 to 2014; Beetle, 2012 to 2015; Beetle Convertible, 2013 to 2015; Audi A3, 2010 to 2015; Golf, 2010 to 2015; Golf SportWagen TDI, 2015; and Passat, 2012 to 2015.
Nearly one of every four Passats made at VW's Chattanooga factory this year were diesel models, according to the company.
Read more about Volkswagen's diesel emissions scandal
Volkswagen Group of America head to testify before Congress
Volkswagen brand sales trail auto market
VW sales in U.S. rise slightly despite scandal
U.S. states issue subpoena in Volkswagen investigation
VW: Nothing has changed inside Volkswagen's only U.S. assembly plant
Cooper: VW should take a page from Tylenol
VW cuts shift at German plant, freezes some hiring
VW expansion, production on track in Chattanooga despite diesel scandal, state officials say
Volkswagen appoints new chief of North American operations
Gov. Haslam worried about VW scandal's effect on sales, jobs at Chattanooga plant
Volkswagen faces major legal trouble in emissions scandal
VW faces daunting challenges in fixing emissions cheating
VW was reportedly warned about illegal emissions tricks year ago
German prosecutors open investigation into ex-Volkswagen CEO Martin Winterkorn
Volkswagen to reorganize North American operations
Tennessee judge sues VW in emissions scandal
Tennessee part of multi-state investigation into Volkswagen
EPA changing emissions tests after being duped by VW for seven years
Volkswagen sued by Chattanooga area residents
Reports: Volkswagen to pick Porsche's Matthias Muller as new CEO
Ex-Volkswagen CEO Martin Winterkorn may get $60 million severance package
More resignations expected at Volkswagen
VW workers 'trying to make light of situation, but we just don't know'
VW faces growing number of class action lawsuits
Why most VW drivers may not let their cars be recalled
Volkswagen CEO steps down, takes responsibility for scandal
German official cautions against talking down VW
Biggest VW dealer says 'Volkswagen brand is at risk'
Six big questions about Volkswagen's emissions crisis
Tarnished: State Senate, U.S. House panels plan hearings on VW's diesel deception
VW officials assure Berke that Chattanooga SUV is 'critical' to their market strategy
Emissions testers approving VW vehicles that pass inspection until directed to do otherwise
Lawmakers move quickly to grill VW over diesel deception
Volkswagen CEO says he is 'endlessly sorry' for emissions deception as VW issues profit warning
Will pollution scandal ruin Volkswagen in the United States?
Volkswagen says 11 million vehicles worldwide affected by pollution scandal
Volkswagen's reputation erodes as diesel emissions scandal widens
Sohn: What was Volkswagen thinking?
VW unveils new Passat design for 2016
VW rocked by emissions scandal as prosecutors come calling
For 7 years, VW software thwarted pollution regulations
VW scandal has TN officials fuming after giving millions in incentives
Volkswagen tells dealers to stop selling 2015 diesel cars
Sohn: VW's alleged emissions 'defeat device' disheartening
VW could be fined $18 billion for cheating on emission rules
VW stock crashes after admitting it rigged U.S. emission tests