Volkwagen reports sales drop amid diesel woes

Volkswagen saw a 10.6% drop in sales in March as it continues to deal with the inability to sell diesel-powered models in the wake of its emissions scandal.

VW saw a sales drop in its core sedan models -- Golf, Jetta and Passat -- but a big increase in sales of its small Tiguan SUV, which competes in one of the industry's hottest segments. Golf was down 3.2%, Jetta fell 9.6% and Passat plummeted 21.8% compared to the same month last year.

Tiguan sales rose 53%, showing that many buyers aren't shunning VW because of its continuing troubles over having admitted to rigging software in hundreds of thousands of diesel cars to be able to beat emissions tests. VW is current subject to investigations by several government agencies and is yet propose a way to fix the affected cars.

In the meantime, VW isn't selling its diesel models, which used to make up about one out of five sales. VW officials say they are encouraged by their sales results, saying they are doing a better job of selling vehicles to individual customers.

“While overall sales saw a decline for the month, Volkswagen dealers improved in terms of retail business,” said Mark McNabb, chief operating officer for Volkswagen of America, in a statement.