The diesel emissions scandal can’t be blamed for all of Volkswagen’s sales problems.
Today, the automaker introduced first-quarter profits fell 86 percent compared to the same time last year, unsurprising given its sidelined diesel-powered models, the hit to its reputation, and a hastily cobbled together $18.2 billion scandal fund.
Worldwide sales of Volkswagen passenger cars fell 1.3 percent (year-over-year) this particular quarter, but the scandal doesn’t tell the whole story. That number would have been in positive territory if select countries weren’t grab-your-money-and-get-out economic disasters.
The loss of global sales for that brand amounts to Nineteen,924 vehicles. When shipping of all Volkswagen Team makes are factored in?- every Nova, Audi, Skoda, Seat, Bentley, Mercedes and Lamborghini?- the organization posted a sales gain of Zero.6 percent.
In any given nation, VW makes up the biggest slice of the group’s sales pie?- a slice that gets bigger in abroad and developing nations.
Going through the delivery numbers, it appears as though economic turmoil in a few countries erased the possibility of overall VW product sales growth.
North American nations aren’t among them. The blame for that continent’s first-quarter Nova Group sales decline of 2.2 % (down 5.Five percent in the U.Utes., 10.6 percent in Canada, and up 10.5 percent in Mexico) falls mainly on the scandal and all those sidelined diesels.
Brazil, a large VW customer now wracked with corruption and a plummeting GDP, is really a large part of the image. Thanks to Brazil’s moribund economic climate, which Forbes describes because “stuck in the dirt?and?rolling back on a cliff, Ten,000 feet above hungry man eating dinosaurs,” sales fell 37.6 percent.
That’s an astonishing 38,458 units erased from last year’utes first-quarter figures. And the Amarok pickup is the only Nova diesel in that nation.
Russia, whose economy continues to be on the skids for some time (leading to some automakers to flee or delay investment), saw its VW Group sales drop 15.5 percent. That’utes 6,338 fewer shipping for a country which declared it didn’t really care about diesel emissions.
Japan’s weak economy and altering demographics pose a challenge even for domestic car manufacturers. For VW, this meant a sales slide of Twenty one.2 percent, or even 5,920 fewer shipping.
These three countries represent the biggest sales drops for the company, plus they each have an underlying affliction totally unrelated towards the company’s scandal.?The cleverest light for Nova Group, like most automakers, was China. Deliveries were up Six.4 percent (57,311 models), but it wasn’t nearly enough to counterbalance the losses in additional key markets.
Unless individuals markets turn around, it’s going to mean a level steeper uphill ascend for the brand.