VW sales commissions have been suffering since the Volkswagen Dieselgate was announced, with the car company’s popularity and reputation dropping. The Dieselgate scandal rocked the automobile community and its customers because the VW diesel emissions advertised on sales labels were drastically lower than the emissions actually produced.
Not only did this impact those Volkswagen customers who were facing decreasing values of their cars, but it also affected the amount of VW sales commissions employees could earn. Since these sales representatives do not rely on typical wages, VW sales commissions are vital to their income.
In 2014, Volkswagen revenue totaled $221 billion from the sale of 10.4 million cars sold worldwide. There were similar statistics in 2013, with the company making $215 billion in revenue. However, after news of the Dieselgate scandal broke, sales plummeted for Volkswagen.
The company felt the effect of the scandal almost immediately, with employees seeing a significant decrease in VW sales commissions. Just a month after the Dieselgate scandal was announced, Forbes reported that sales of VW passenger brand vehicles had dropped by 5.3% in October 2015.
The sales of these cars were down by 4.7% compared to the previous year, with experts also noticing a significant drop in sales of Jetta and Passat vehicles. According to a Bloomberg report in July 2016, the VW sales had decreased by 22% in the United States. At this time, this was the eighth consecutive month Volkswagen sales were down.
This is troubling news for Volkswagen sales representatives, whose occupational duties primarily consist of marketing the benefits of the vehicles to convince consumers to purchase. These sales representatives are paid almost entirely VW sales commissions, which means they have experienced a significant loss of income.
Overview of Volkswagen Dieselgate Scandal
The Volkswagen Dieselgate scandal was announced in September 2015 when it was discovered that VW diesel emissions were much higher than what the sales labels stated. According to the Notice of Violation letter, approximately 500,000 vehicles sold in America were producing up to 40 times more VW diesel emissions than allowed under the Clean Air Act.
These cars initially passed the inspection due to a “defeat device” installed in the software to give false readings. These defeat devices signaled the car to produce different emission levels based on the testing environment, to show the VW diesel emissions were under “regular use.”
Volkswagen had allegedly known about this problem since 2014 and had deliberately concealed this information from the public to protect the company’s reputation and make sure sales stayed high.
Volkswagen has since admitted that over 11 million Volkswagen vehicles worldwide were affected by the Dieselgate scandal. The Dieselgate scandal also affected Porsche and Audi, with the problem expanding to more customers and automobile employees.
Volkswagen was recently hit with a class action lawsuit in March on behalf of Volkswagen employees relying on the VW sales commissions. The claim alleges the company’s fraudulent behavior severely impacted sales and that the company did not warn their employees of the upcoming Dieselgate scandal.
Join a Free Volkswagen Sales Commissions Class Action Lawsuit Investigation
If you worked as a Volkswagen sales representative when the VW dieselgate scandal broke and you saw a drop in your commissioned sales, you may qualify to join this VW sales representative class action lawsuit investigation.
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