Robust plus for vw core brand in april

robust plus for vw core brand in april

Sustained strong growth, particularly from asia, and a favorable easter brought the VW group solid sales growth at its core car brand in april.

The 480,900 april deliveries to customers worldwide represent an increase of 5.4 percent compared with the same month last year, volkswagen reported in wolfsburg on tuesday. However, there were two more working days this april, which boosted the statistics accordingly.

In march, the dax giant had reported a minus of 0.8 percent for its core brand with the VW logo – also due to the working day effect.

Over the first four months of the year, VW has thus maintained the somewhat restrained pace of the first three months. In the first two months of the year, the sales increase of 9.1 percent was almost in double digits. Looking at the first four months, 1.91 million vehicles were registered, an increase of 5.3 percent. This is hardly a movement, because at the end of march it was 5.2 percent growth.

VW board member for sales christian klingler said: "the development of the world markets remains varied and, especially in europe, marked by major challenges. Volkswagen passenger cars was also unable to escape this trend."On the other hand, there were still positive signs in china. There in the middle kingdom, sales by the end of april were up by a fifth. 783,900 cars account for a good 40 percent of total worldwide four-month sales of the core car brand.

On the home continent, on the other hand, the news remains bad: as of april, europe as a whole only accounts for 545,300 cars and is thus down 7.5 percent; the core market of western europe – excluding germany – is down 7.9 percent. In germany itself, the 10.9 percent decline compared to march (minus 15.1 percent) is an improvement.

VW made up ground in april, in line with the trend: the federal motor transport authority had reported a 3.8 percent increase in new registrations for the month. VW dominated seven of 13 segments.

The USA, on the other hand, is stagnating for VW, as is already known. Sales in south america fell by 4.5 percent from january to april. Important brazilian market down slightly by 2.9 percent.

The continuing strong pressure at home is bad news for the group’s coffers – because europe is not only considered a major source of earnings at VW. However, as the industry struggles with overcapacities and competes for too few customers with high discounts, margins are suffering. This is also reflected in the latest VW quarterly balance sheet: the operating profit of the core car brand was almost halved.

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