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1,794 views Aug 6, 2007

VW ends Bluetec diesel agreement with Mercedes

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Volkswagen's deal with Daimler to use Bluetec engines in America is in trouble. VW, Audi, and Mercedes Benz had announced a collaboration where they would jointly market diesels under the Bluetec brand in November last year. However, VW is now announcing it will revert back to its own TDI branding for its future diesel vehicles on sale in the US.

It’s thought that the decision was made because the Bluetec name may have been too closely aligned with Mercedes, but VW cited the reason as being tougher US emissions regulations.

VW currently sells no diesels in America, however, it’s planning to introduce a new range in 2008. The ’08 Jetta was expected to be the first Bluetec car, but it'll now simply be branded as TDI.