VW SALES
Model, March U.S. sales and change from a year ago:› Passat: 6,097, down 21.8 percent› Golf: 4,495, down 3.2 percent› Jetta: 10,471, down 9.6 percent› Beetle: 1,468, down 39.9 percent› Eos: 109, down 48.8 percent› CC: 361, down 29.6 percent› Tiguan: 3,519, up 53 percent› Touareg: 394, down 26.4 percent› Total: 26,914, down 10.3 percentSource: Volkswagen of America
Volkswagen faces more quality questions after Friday's recall of 91,000 Chattanooga-made Passat sedans with diesel engines because wiring under the body can corrode, overheat and possibly start fires.
The recall, which covers Passats from the 2012 through 2014 model years, was the German automaker's second this week even as it tries to come to grips with its larger diesel-emission issue.
The Passat recall emerged as the VW brand reported Friday that its total March U.S. sales fell 10.3 percent from a year ago. Passat sales tumbled even more, dropping 21.8 percent last month, according to the company.
And today, VW worldwide brand chief Herbert Diess is expected to address its dealers and attempt to reassure them of the carmaker's future in America.
"It has to," said Akshay Anand, an analyst at Kelley Blue Book. "The executive from VW corporate needs to allay whatever fears its dealers have or see more things like lawsuits and bad-mouthing. When dealers get negative, forget about it."
Concerning the Passat diesel recall, VW said in a filing with the National Highway Traffic Safety Administration that wire seals in an electrical connector weren't properly assembled and can let water touch electrical terminals. In rare cases, this can cause a short and a fire underneath the vehicle.
The problem was discovered when the Chattanooga factory reported isolated underbody fires. Dealers will replace the connector with new ones that are properly sealed. Customers will be notified to bring their cars in for service starting in June.
Earlier this week, VW recalled nearly 5,600 electric e-Golf cars in the U.S. to address a battery problem that can cause stalling. VW said the recall covers all electric vehicles it has sold since it launched the e-Golf in November 2014.
VW sales have slid since September, when it was revealed the company had cheated on diesel emission tests by using a so-called software defeat device.
In Chattanooga on Friday, people had mixed views on whether they'd buy a VW in the future.
Andrew Holland said outside the Tennessee Aquarium that he wouldn't purchase a vehicle with a diesel engine.
"There are so many uncertainties," said the Blount County, Ala., man.
But Dan Fry of Loganville, Ga., said he wouldn't have a problem purchasing a VW, noting a friend owns a diesel Passat that gets about 50 miles a gallon.
"It depends on the price," he said.
Anand said he didn't believe the recalls this week will be major issues, though the company needs to get the diesel emission troubles behind it.
"From a consumer perspective, the longer this drags out, the worse it is for their image," he said.
Anand said KBB surveyed consumers earlier and found that some 85 percent to 90 percent of them are willing to forgive VW if it takes the right steps to settle the diesel deceit.
"They need a fix as soon as possible," he said.
A federal judge who is overseeing civil litigation stemming from the emission scandal has said VW needs to submit a concrete proposal by April 21. That could include a regulator-approved technical fix that allows the cars to stay on the road, a buyback plan or other remedies.
In Las Vegas today at the National Automotive Dealers Association meeting, Diess is expected to say that VW will push for more new products from its Chattanooga plant. That could include a second sport utility vehicle based on the CrossBlue Coupe it unveiled last year at the Detroit auto show.
VW is undertaking a $900 million expansion for its Chattanooga plant, including spending $600 million here, to ready a new midsize SUV for production late this year.
Anand said VW can show its commitment to the U.S. market by the new products it's building here.
"If you assume they stay the course, you'll see more tweaking of the lineup," he said.
Contact staff writer Mike Pare at mpare@timesfree press.com or 423-757-6318.