Business in China is weak: VW continues to lose momentum in August

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While the increase was 6.6 percent in July, this rate was 12.8 percent in the first half of the year. The main reason for this is weak trade in China.

Sales continued to decline in the key market. There were 6.5 percent fewer cars sold here than in August 2022, with 278,000 vehicles. VW justifies this with an unusually strong month the previous year, when China boosted sales with tax benefits, among other things.

But most other areas were black. The group managed to achieve significant gains in Western Europe, where 232,000 vehicles were delivered, an increase of 21.1 percent compared to a year ago.

Among individual brands, the main increases were Audi (+14%), Skoda (+19%) and Seat/Cupra (+54%). Main brand Volkswagen, which accounts for more than half of group sales, recorded a decrease of 1.7 percent. Porsche was also in the red with 1.5 percent.

VW is currently struggling with declining demand for electric cars and a shortage of engine parts for internal combustion engines following floods in Slovenia in August. Production had already had to be reduced at many sites and 269 temporary positions in Zwickau will be eliminated. Brand boss Thomas Schäfer described the current buying reluctance at the beginning of the month as only “moderately low”.

CEO Oliver Blume had already capped his sales target for the full year at the end of July. Instead of the previously targeted 9.5 million vehicles, only 9.0 to 9.5 million vehicles are expected to be delivered groupwide by the end of the year.

(SDA)

Source :Blick