German carmaker Volkswagen recorded a 5-percentage loss in their global sales for the month of October, company news release indicates. This was the first business estimation since the automaker’s emission test outrage.
The decline in sales figures was instigated by the company’s decision to cease the production of a few diesel model cars due to failing the emission tests. More than 800000 Volkswagen vehicles failed in the emission tests.
Volkswagen sales dropped one percentage from last year when it sold 142,300 vehicles in Europe. The emission scandal affected company’s turn over and its credibility. Akshay Anand of Kelley Blue Book said that this would affect the whole sales on years to come. He also added that “sale drop was already expected by Volkswagen and they were passing through a worst time in the history of the company.”
The sales mislays in Europe is expected to affect Volkswagen at the most because almost 30-percentage of the company’s total worldwide sale is happening here with a total of more the 490000 vehicles numbered. Jürgen Stackmann, head of sales for the VW brand informed that” The Volkswagen passenger cars are traveling through a difficult situation and he added that other than diesel and co2 issue they are also fearing unstable position world market ”
Volkswagen is the one of the biggest automaker in Europe. Volkswagen also owns Audi, Porsche and several other car brands. Volkswagen had loses in almost all of its worldwide markets with a 50 percentage losses in Brazil, 27 in Russia. Against all its odds, Volkswagen gained a two-percentage growth in china. In America diesels vehicles are only about 20 percent of the total. So diesel issues did not affect harshly when we compared to Europe. Due to this reason the American market saw a 6 percentage growths in Volkswagen sales.
The Volkswagen car models that failed the test include its popular models such us the Volkswagen Golf, Passat, Jetta and Tijuana, Volkswagen’s SEATA and Skoda brands. These cars were not sold in united State. Audi 1 is also coming in this infamous list. Volkswagen informed that they would cover the cost of repaying tax for those cars failed in the emission tests and pollution test