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  VW backs out of Bluetec brand in US diesel market

September 2007

 

Volkswagen has decided not to sell low-NOx diesels in the US under the Bluetec name. It appears to be backing out of an agreement made last year with DaimlerChrysler to jointly market diesel cars and SUVs under the brand.

The OEMs wanted to avoid the negative connotations of diesel in the US – using a single brand was expected to do this without confusing buyers. But VW’s brand for low-CO2 diesel models in Europe is called BlueMotion. Mercedes has since decided to launch Bluetec in Europe too.

“Bluetec was the label for a marketing campaign,” said VW. “We never spoke about Bluetec Volkswagen cars.” VW will release future diesels for the US under its own TDI brand name.

Mercedes said it had not been officially informed of VW’s stance. “As far as we are aware there has been no confirmation that VW is leaving the Bluetec name,” said the company.