German car manufacturer, Volkswagen witnessed an increase of 2.5 percent in its sales in 2016, as the company sold a total of 5.99 million units. The manufacturer has witnessed the increases in its sales despite the Volkswagen emission scandal hitting them in 2015. Volkswagen has said that its sales have fallen in the US and Western Europe, while they had saw increase in its sale in Asian countries such as in China.
Volkswagen witnessed the scandal impact in its sales in the US market they registered a fall of 7.6 percent, while in South America the manufacturer shipped 27 percent fewer vehicles. On the other hand, the sales in Western Europe recorded a fall of 2 percent, while in the home market the company received 7.2 percent decline. In the Asian market, Volkswagen registered an increase of 11.8 percent including 14 percent in China and 6.9 percent in Eastern European market.
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In 2015, the diesel gate scandal was out, wherein Volkswagen admitted installing the "defeat devices" designed to reduce cars' emissions of harmful nitrogen oxide when the software detected they were undergoing regulatory tests. The defect was traced to 11 million vehicles worldwide, which included eight million in Europe. The cars affected most under the diesel gate were the Audi A3, Volkswagen Jetta, Beetle, Golf and Passat. In addition to this, vehicles with the 3-litre TDI engine were also affected across brands such as Porsche and Audi.
In the diesel gate scandal, Volkswagen will pay a total of $ 14.7 billion in the US to settle claims to its customers. The cars covered under this are the Volkswagen Jetta, Passat, Golf, Beetle and Audi A3 cars manufacture from 2009 to 2015 with 2.0-litre diesel unit.