Sunday, 17 April 2016

VW sales hold as ‘dieselgate’ rumbles on

Volkswagen Group vehicle deliveries rose by 0.8 per cent in the first quarter of 2016. The Group handed over 2.5 million vehicles to customers from January to March 2016.
At 967,100 units, Group deliveries in March almost matched the prior-year level.
“There was a solid growth in the Europe and Asia-Pacific regions in the first quarter of 2016. The Group recorded its best start to the year in China since entering the market there,” declared Fred Kappler, head of group sales at Volkswagen AG.
The Volkswagen Group delivered 447,600 new vehicles to customers in Europe in March, an increase of 2.7 per cent compared with the previous year. While developments in Western Europe (+1.9 per cent) were positive, there was a slight decrease on the home market of Germany (-2.5 per cent).
VW said that momentum in France, Italy and Spain was particularly strong. The markets in Central and Eastern Europe also recorded strong growth in this period (+8.8 per cent), but the continued tense situation in Russia (-3.3 per cent) had an impact.
VW Group delivered 201,500 vehicles to customers in the North America region in the first quarter. Of these, 49,900 new vehicles (-3.7 per cent) were delivered in the USA, the region’s largest single market, in March. Also, 40,000 vehicles were handed over to customers in the South America region in the same month, of which 26,000 were delivered in Brazil where the market decline continued as a result of the macroeconomic situation in the country.
                             Solid growth recorded in Asia-Pacific
The Asia-Pacific region recorded solid growth in the first quarter where the effects of ‘dieselgate’ were not felt. Vehicle deliveries in the region during this period rose overall by 4.3 per cent to 1,045,400 units. Of this total, some 955,500 vehicles were handed over to customers in China in the first quarter, representing an increase of 6.4 per cent compared with the prior year. A total of 328,000 vehicles were delivered in March.
Commenting on VW Group’s sales, Christian Stadler, Professor of Strategic Management at Warwick Business School, said: "While the numbers are down, it is actually a far cry from what one would have expected. Of course, that the VW brand has been hit more than others is no surprise, but, considering the furore of 'dieselgate' we have definitely not witnessed the demise of the Volkswagen Group that some expected.
"There has been a downturn, but it is not a massive one. In fact, as past history of scandals has shown, people are often quick to move on and forget,” said Stadler.
"What I would say is the numbers do reflect a bigger concern for Volkswagen over its product mix, for example, it does not have new products in the SUV section,” added Stadler. “This is a bigger problem in China and far more worrying than 'dieselgate'. Volkswagen has been outpaced by Toyota. Over in China it does not really have a cheap mid-range SUV that the market is after. This is a problem it has been aware of for years, but when challenged about it, things always seem to be another year away.”
According to Stadler, "Volkswagen really need to get this right moving forward as this is perhaps a much bigger issue than the decline in European sales."
Meanwhile, ‘dieselgate’ still rumbles away in the background.
An overview of VW Group’s sales is show in the tables below.

Deliveries to customers
by markets
March
2016
March
2015
Change
(%)
Jan.-
March
2016
Jan.-
March
2015
Change
(%)







Europe
447,600
435,800
+2.7
1,052,100
1,018,400
+3.3
Western Europe
390,300
383,100
+1.9
901,100
870,900
+3.5
Germany
124,400
127,600
-2.5
319,500
314,800
+1.5
Central and Eastern Europe
57,200
52,600
+8.8
151,000
147,500
+2.3
Russia
14,300
14,800
-3.3
36,400
43,500
-16.3
North America
78,100
78,700
-0.7
201,500
205,800
-2.1
USA
49,900
51,800
-3.7
124,000
131,600
-5.7
South America
40,000
52,900
-24.5
110,600
152,800
-27.6
Brazil
26,000
38,700
-33.0
71,100
110,900
-35.9
Asia-Pacific
364,200
357,900
+1.8
1,045,400
1,002,200
+4.3
China
328,000
315,400
+4.0
955,500
898,400
+6.4







Worldwide
967,100
968,600
-0.2
2,508,300
2,487,700
+0.8

Deliveries to customers
by brands
March
2016
March
2015
Change
(%)
Jan.-
March
2016
Jan.-
March
2015
Change
(%)







Volkswagen Passenger Cars
543,700
558,700
-2.7
1,459,500
1,479,400
-1.3
Audi
186,100
178,000
+4.6
455,800
438,200
+4.0
ŠKODA
106,300
102,100
+4.2
276,600
265,100
+4.3
SEAT
46,500
46,400
+0.2
102,900
102,700
+0.2
Porsche
20,900
20,200
+3.4
56,000
51,100
+9.5
Volkswagen Commercial Vehicles
46,100
45,700
+0.8
113,100
108,500
+4.3
MAN
9,200
9,400
-2.6
23,400
22,100
+6.3
Scania
7,200
6,700
+7.3
18,400
17,500
+5.4







Volkswagen Group (total)
967,100
968,600
-0.2
2,508,300
2,487,700





















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