VW: Higher Material Costs Will Hike New-Car Prices

January 14, 2019 at 10:19 AM

Volkswagen AG says the cost of materials needed to meet European carbon dioxide emission standards will drive up its new-car prices over the next several years.

Sales chief Christian Dahlheim tells reporters that entry-level models will be hit with the biggest proportional hikes. He also says new models should help offset the damping effect of higher prices and global trade uncertainty.

But Dahlheim notes that the cost pressure of tightening emission laws is forcing VW, like other carmakers, to review and prune its model lineup and array of powertrain options.