Volkswagen Sales Drop in July Following Weak Month in Europe

Worldwide sales dropped nearly 2% in July for the Volkswagen brand, leading to a 0.6% drop for the Group. Volkswagen still performed well in China, but that wasn’t enough to offset a European drop in sales.

Europeans bought 10% fewer Volkswagen Brand cars in July than they did a year ago and in Germany the drop was especially acute. The traditional VW stronghold bought 15% fewer of the cars this July than they did last July.

There are a couple of possible reasons for the drops. Automotive News reports that July sales dropped across Europe, and the summer months are never especially good sales months there.

Automotive News also postulates that Volkswagen is now feeling the effect of its emissions scandal in the market.

China, meanwhile, is still healthy, with sales there rising nearly 17% over last year, and more than 12% in the wider Asia-Pacific market.

Sales continue to drop in South America and the United States, but that’s par for the course this year.

Fortunately for the Group, Audi (+2.3%), Skoda (+1%), and SEAT (+0.2%) all had positive sales months, though Porsche sales dropped nearly 7% last month.

They could not offset the Brand’s worldwide 1.8% drop, though, so Group sales for the month are 0.6% lower than they werein 2015. That said, Volkswagen AG still has the largest share of the European market and sales for the year so far are still higher than they were last year.

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