Just as Vauxhall have announced that they are to temporarily close two of their plants, Volkswagen have denied that they are about to carry out the same form of action. Reports in Germany claimed that Volkswagen were about to shut down a factory with an alarming performance in the European car market recently.
All problems stem from the major Euro Zone crisis. Car sales have dramatically decreased especially as debt problems continue to rise.
Despite Volkswagen being Europe’s number one car producer and the world’s number two overall, even they have felt the effect of the Euro Zone crisis. Sales have fallen with demand not as high as it used to be for passenger cars.
Volkswagen released an official statement which read “The given scenarios are speculative and factually not correct”. The company have admitted however that they will struggle to meet sales targets in the upcoming months. Their strategy is not to follow the suite of other car makers such as Peugeot, Renault and Vauxhall who have decided to shut down factories for a period of time. Instead Volkswagen aims to focus more on other markets throughout the world in order to make up sales.
Volkswagen Sales Head, Christian Klinger said “The Volkswagen Passenger Cars brand has grown global deliveries further, despite the continued difficult market situation, above all in western Europe,”
So far this year Volkswagen has performed quite well in the car market. From January to July, the company have managed to sell 4.45 million cars which represent a great 8.9 per cent increase of sales when compared to the first half of 2011.
Volkswagen’s major aim is to become the world’s number one car producer by the year 2018. They were extremely close to achieving that feat last year, finishing second behind General Motors. By 2018 Volkswagen want their factories to be producing 10 million vehicles worldwide. Competition from General Motors and Toyota will prove extremely stiff however.
Of all the major mass car producers in Europe, Volkswagen is fairing the best. Many thought that they were in fact immune from the European sales crisis. However turbulent times for the whole car markets have finally caught up with the German car giant. The major difference is that Volkswagen do not have to force factory closures, they are making up for losses in other areas of the world.