Volkswagen Sales: The Second Decline in 4 Years
|   Thursday, August 15, 2013
Volkswagen, the largest carmaker in Europe and third in the world, has "scored" its second decline in sales on the European market in the last four years. The German company executives say that the situation is still difficult in Europe and the market still has problems related to poor the ratio between demand and production of new cars. Fortunately for the Germans at Volkswagen, a minor decrease in sales in July, just 0.5 percent, is manifested after some 38 months of constant growth worldwide.


March was also difficult for those of Volkswagen. The brand recorded at that time a decrease of one percent from the same period of 2012. However, the Volkswagen trade mark had a good evolution at the global level in the first seven months of the year with sales increasing by four percent compared to the same period of last year. The difference between Europe and the good evolution of the brand is due to the China division, which has managed to shift the balance in favor of the brand based in Wolfsburg.

"Given that the uncertain economic conditions will continue over the coming months, we are keeping a very close eye on developments in global automotive markets," Board Member for Sales and Marketing for the Volkswagen Group and the Volkswagen Passenger Cars brand Christian Klingler said. He previously said that "The Volkswagen Passenger Cars brand has produced a solid performance so far in a market situation that remains challenging."

Volkswagen managed to deliver in Europe 0.98 million vehicles in the first seven months of this year. Volkswagen increases have occurred in the Asia-Pacific area, 17 percent, China (18.9 percent), and North America (3.6 percent). On the European market, deliveries fell by more points than anywhere else, the average for Western Europe being 6.8 percent, without the German market, where deliveries fell by 9.1 percent.

The multi-brand group passed relatively unharmed out of most of last year's slump that took place in the major European markets. All of it was thanks to overseas growth and a model portfolio encompassing small fuel-efficient cars, like the VW Up city car, up to ultra-luxury sedans like the Bentley Continental.
Plus, in spite of the latest drop in sales, VW continues to outperform many rivals. Group wide deliveries for the first half of the year, including luxury names like Audi and Porsche, were up 6 percent, reaching a record of 4.7 million, thanks to gains in China.

In contrast, the brand saw deliveries go up by 17.0 percent in the Asia-Pacific area from January to July, selling over 1.48 million vehicles to buyers there. 1.36 million vehicles (up 18.9 percent) were sold in China during the same period. In India, deliveries fell to 36,900 units (down 11.1 percent).
In the North American region, Volkswagen saw deliveries rise by 3.6 percent to 359,300 units in the period up to July, of which 242,600 models were shipped to the United States.

Sales in the South American region from January to July also dropped by 11.3 percent to 419,100 units, out of which 314,900 vehicles (a 12.8 percent fall) went to Brazil.
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