It is that time of year when the Finances of the world’s biggest companies are released. The general public learns about them whilst economists scrutinise them, some however use it as a gauge to predict the future. So, what financial situation is Volkswagen in? And what does their future look like?
Well of course the emissions scandal has hit them hard but not just economically. Popularity which leads to sales has been badly damaged. In March, global sales decreased again for another consecutive month. This time, the fall was only 2.7 percent but, it equated to the selling of only 543,700 units which is much better than February’s 4.7 percent decrease. Global sales for the first quarter therefore saw a decrease of 1.3 percent to 1.46 million compared to last year. Western Europe saw a 2 percent drop, with Germany, the company’s home, seeing a loss of 8.2 percent. The US, where the scandal was uncovered, saw a 10.4 percent decrease in sales whilst Brazil saw a huge 35.2 percent slip in sales.
There were however markets which saw an increase for Volkswagen. The UK was surprisingly interested in purchasing the German outfits cars. VW sales in the UK were the strongest it has been since last September, so maybe trust has been regained slightly? The Chinese market saw an increase of 6.5 percent, which is the best sales period Volkswagen have achieved in there long history in the Chinese automotive market.
These are the figures which relate specifically to Volkswagen. The likes of Audi, Porsche, Seat and Skoda were not included. So, it looks as if the foreseeable future of Volkswagen lies in Europe and China. North and Latin America have witnessed massive looses and therefore, maybe more time is needed for the emissions scandal wounds to properly heal. For the moment, it might be worth putting more effort into ensuring that the subsidiary companies yield better results…