VW’S 2016 SALES
By model, number sold and percent change over 2015:* Golf family — 61,687, down 5.5 percent* Jetta — 121,107, down 7.6 percent* Beetle — 15,667, down 30.9 percent* Eos — 387, down 87.1 percent* Passat — 73,002, down 6.7 percent* CC — 3,237, down 48.4 percent* Tiguan — 43,638, up 21.7 percent* Touareg — 4,223, down 40 percent* Total — 322,948, down 7.6 percentSource: Volkswagen of America
Volkswagen of America's end-of-the-year sales finally joined the banner numbers that automakers enjoyed in 2016, but it was late to the party.
VW on Wednesday posted a December sales jump of 20.3 percent over a year ago, the second consecutive double-digit monthly gain.
The Chattanooga-made Passat drove much of the December increase as sales of 7,241 units more than doubled versus a year ago, the company reported.
Still, the VW brand's annual sales in America fell 7.6 percent in 2016 to 322,948 units as the carmaker grappled with the fallout from the diesel emissions scandal. That comes after VW sales dropped 4.7 percent in 2015.
U.S. auto sales hit a new record in 2016, according to figures, even as the industry used more incentives to get Americans to buy vehicles. Research firm AutoData said U.S. auto sales posted an all-time high of 17.55 million vehicles in 2016.
Rebecca Lindland, senior analyst at Kelley Blue Book, said Volkswagen needs to focus on rebuilding its reputation in the wake of its admission in the fall of 2015 that it rigged equipment to pass emissions tests on many of its diesel engines.
"It's about getting consumers to consider their product again," she said.
Volkswagen has agreed to compensate U.S. owners of about 80,000 polluting 3.0-litre diesel cars, pushing up the costs of its emissions test cheating to more than $17 billion.
Reuters news service reported Wednesday that VW also is in talks with the U.S. Department of Justice and could spend billions of dollars more to reach a criminal settlement, possibly before President Obama leaves office on Jan. 20. While talks continue, Volkswagen CEO Matthias Mueller and other top officials will not attend the Detroit auto show next week, Reuters said.
But Volkswagen will tout its newest vehicle at the Detroit auto show. The new Chattanooga-made Atlas sport utility vehicle, slated to hit dealerships this spring, should help VW sales in 2017, analysts said.
Jesse Toprak, chief executive of auto research site CarHub.com, said the appetite for SUVs in the market is "extremely healthy." He expects to see even more SUVs in the German automaker's pipeline.
"It's the prudent way to go," Toprak said.
VW sales last month hit 37,229 units and were helped by the Passat, Tiguan SUV and Golf SportWagen, the company said.
Passat sales were a 101.4 percent increase over December 2015. Tiguan sales reached 5,575, a 13.8 percent increase over December 2015 and marking the best month ever for the vehicle.
The Golf SportWagon, which includes the new Alltrack, recorded sales of 3,332 units in December, up 271.5 percent.
Chattanooga area residents on Wednesday were mixed about whether they'd consider buying a VW in the future.
Ben Williams of Chattanooga said he would look at VW when he next purchases a vehicle.
But, he said, at the end of the day, an acquisition involves the amount of the monthly payment and what he can find in the market.
Jeff Henderson of Dalton, Ga., said he doesn't think VW will be on his list, saying his wife likes SUVs and the automaker doesn't seem strong in that category.
"I don't think VW has kept up," he said.
The 322,948 VWs sold in 2016 also was off from sales of 366,970 in 2014, before the automaker's diesel deception was unveiled.
Passat's total 2016 sales were down 6.7 percent from 2015 and 24 percent off from the 96,649 sold in 2014, figures show.
Still, VW recently completed spending $900 million to produce the Atlas in Chattanooga. The company is bringing more than 1,000 new workers into the factory with plans to have about 3,400 employees in Chattanooga by April.
Contact Mike Pare at mpare@timesfreepress.com or 423-757-6318.