In Line With 2016, Volkswagen’s Success Story Continues, Driven By Growth In Its Core Regions

July 26th, 2017 by Trefis Team

Volkswagen AG (OTCMKTS:VLKAY) is slated to release its half yearly results on July 27th. Despite facing  the backlash from the emissions scandal, which first broke out in September 2015, and cost a significant amount to the German car maker, the company’s vehicle delivery suggests that Volkswagen is on a successful growth track, signalling that there has been no indelible marks on its reputation. In line with the last year, Volkswagen’s delivery for the first half of 2017 showed impressive growth suggesting that this year might also be a strong one for the German automaker.

Despite Being Mired With Scandals And Monetary Charges, Volkswagen’s Growth Story Continues

To give a perspective of the monetary setback that it faced, the automaker will be ending up spending over $20 billion in the U.S. alone in relation to the emissions scandal to resolve claims from the federal and state regulators and owners of the affected vehicles, and for recalls and fixes. It has also agreed to fitting around 11 million vehicles worldwide with software that allowed cheating on emission tests. It seems that the efforts to win back customer trust in the form of recalls, fixes, and hefty compensations to the owners of the affected diesel vehicles might have also helped Volkswagen’s cause to a great extent. Its impressive delivery growth suggests that customer confidence for its cars hasn’t much wavered.

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In Line With 2016, Volkswagen’s Delivery Shows Impressive Growth In The First Half Of 2017

Even after setbacks such as fines, settlements, recalls, and fixes associated with the dieselgate scandal, Volkswagen set a new record for deliveries in 2016, delivering 10.3 million vehicles worldwide, up 3.8% year-over-year, and surpassing Toyota as the global leader in automotive volume sales in this process.

In tandem with last year, the first half of 2017 witnessed Volkswagen delivering 5.2 million vehicles with a 0.8% y-o-y growth. June was a particularly successful month for the company with 920,700 Group vehicles being delivered depicting a y-o-y rise of 4.2%. The stable growth in its core regions gives Volkswagen’s management the confidence that this impressive growth streak will continue even in the second half of 2017.

 

(Image Source: Volkswagen)

 

Notes:

1) The purpose of these analyses is to help readers focus on a few important things. We hope such communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com
2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to our complete analysis for Volkswagen

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