Volkswagen Europe market share dips for sixth month in row
Volkswagen’s brands accounted for 24% of new car registrations in February versus 25.4% a year earlier, the European Automobile Manufacturers’ Association, or ACEA, said Wednesday in a statement.
Industry-wide sales jumped 14% to 1.09 million vehicles, while two-month registrations increased 10% to 2.19 million vehicles.
The German company is recalling 8.5 million diesel cars in Europe to fix engines designed to cheat on emissions tests.
Sales growth at the VW brand was only about one-third of the industry-wide increase in February, and its deliveries have lagged behind the market’s gains since the scandal came to light in September.
The main beneficiaries were Ford, Fiat and German luxury-car producers Mercedes and BMW, bolstered by sport utility vehicles.
“Even with the diesel scandal, at least the German premium brands are performing well to very well,” Peter Fuss, a partner at consulting company EY, said. “Manufacturers know, however, that times are getting tougher, with economic and political risks greater this year than last. Volatility in all markets is getting stronger.”
European registrations at Volkswagen rose 7.7%, held back by a decline at the Seat division and lower-than-average growth at the VW and Porsche marques. Growth exceeded 14% at the Audi and Skoda nameplates. The German carmaker was pleased that the impact on its namesake brand has been limited, with Juergen Stackmann, head of the division, saying last week that customers are remaining “loyal to us in what is a challenging period.”
With the industry-wide expansion in February, the European car market has grown for 30 consecutive months. Demand is recovering from a two-decade low in 2013. Gains last month were bolstered by low interest rates, discounting by manufacturers and cheaper fuel, as well as by an extra sales day in February because of the leap year.
Bloomberg
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