Volkswagen’s brand taking a hit due to no solution to diesel emission scandal

Its sales chart have marched steadily southwards for the last 18 months.

With Volkswagen yet to find a suitable solution for its diesel emission scandal, its brand is taking a hit with models across the brand showing falling sales in March.

In its declining sales trend, its global deliveries have fallen by 2.7% in March, which is its 16th drop in the past 18 months. Volkswagen, Europe’s largest automobile manufacturer, has however sold 1.46 million cars globally in the first quarter of this year.

However, its decline last month is not as severe as its decline in February wherein it’s global car sales contracted by 4.7%.

These figures exclude Volkswagen’s Porsche and Audi sales data, which the company is set to release later today.

Industry analysts have attributed to the VW’s decline due to its stop sale of diesel models in the United States and its stalled recall in Germany. Volkswagen is still to arrive at a technical fix for its diesel emission scandal which affects nearly 600,000 of its cars.

In Western Europe, the demand for its models have seen a drop of 2% in the last 1 month, whereas in the United States, the demand for its models have dropped by a whopping 10%. However, demand has risen in China by 3.6%, which is currently its biggest market.

Although China, the world’s biggest car market, has increased its demand for VW cars, in comparison to Mercedes, owned by Daimler, and BMW, its car sales figures are subdued.

The failure to comply to with U.S. environmental standards has significantly undermined Volkswagen’s efforts to cap and put a price to the diesel emission scandal, which is continuing to delay its annual results.

On April 22, Volkswagen’s board is set to approve its 2015 earnings and potentially discuss the cost of the diesel emission scandal. Significantly, April 23 is the agreed date for VW and U.S. regulators on which the agreement for a solution for manipulated diesel car emission expires.




Categories: Creativity, HR & Organization, Regulations & Legal, Strategy


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