VW Group sales return to growth in January despite diesel scandal – Automotive News

February 12, 2016 – 8:34 am ET

FRANKFURT (Reuters) — Volkswagen Demographic sales returned to growth in January despite the company’s diesel emissions scandal, thanks to requirement in China where VW core brand posted its ideal month ever.

Deliveries at the 12-brand group, featuring luxury division Audi and sports-vehicle maker Porsche, climbed 3.7 percent to 847,800 in January, Volkswagen said in a statement today. In December, sales owned dropped 5.2 percent, contributing to the very first decrease in full-year sales due to the fact that 2002.

Deliveries of VW-brand vehicles increased by 2.8 percent at 521,400, steered by a 15 percent jump in China, the brand said in a divide statement.

While VW brand owned an excellent month in China, its most significant market, sales fell in Europe and in the U.S. where the automaker’s diesel emissions scandal has actually strike hardest.

VW brand’s deliveries fell 3.1 percent in Europe, along with a 5.2 percent decrease in Germany. The brand’s U.S. volume was down 15 percent. Brazilian sales plunged 43 percent and Russian sales dropped by 28 percent. VW said economic disorders in Brazil and Russia continue to be “tense” while China is regaining energy and the trend in Europe is “usually stable.”

Porsche, Audi growth

VW Group’s others brands viewed deliveries rise in January, along with Porsche up 24 percent and Audi up 4.0 percent. Skoda’s volume grew by 5.2 percent and Seat’s volume was up slightly at 0.2 percent.

VW Demographic last month began recalling 8.5 thousand VW, Audi, Skoda and Seat vehicles in Europe along with rigged diesel engines to make them compliant along with EU regulations about kind approval. The firm is still negotiating a solution along with U.S. regulatory authorities.

Juergen Stackmann, VW brand sales, marketing and aftersales chief, said in the statement that the recall was among the company’s “most significant organizational challenges.”

VW Group’s sales growth turned bad for the very first time in a minimum of 4 and a one-half years in April 2015, raising stress about the automaker to solution problem spots laid bare by the shock ousting of long-time Chairman Ferdinand Piech.

The circumstance worsened after VW accepted in September it owned rigged U.S. diesel emissions examinations and up to about 11 thousand vehicles global can have actually illegal software installed.

Earlier this month, Volkswagen postponed publication of its 2015 economic outcomes and delayed its annual shareholders’ resting while it struggles to place an exact fee about the emissions scandal.

Automotive News Europe contributed to this report
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