VW Group Sales Post Biggest Gain Since April 2014

October 14, 2016, 4:14 PM UTC
U.S. Government Orders Volkswagen To Recall 500,000 Vehicles Over Emissions Software
CHICAGO, IL - SEPTEMBER 18: Volkswagen Beetles are offered for sale at a dealership on September 18, 2015 in Chicago, Illinois. The Environmental Protection Agency (EPA) has accused Volkswagen of installing software on nearly 500,000 diesel cars in the U.S. to evade federal emission regulations. The cars in question are 2009-14 Jetta, Beetle, and Golf, the 2014-15 Passat and the 2009-15 Audi A3. (Photo by Scott Olson/Getty Images)
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Volkswagen’s group sales rose 7.1 percent in September, the largest monthly gain in two-and-a-half years, powered by demand for VW brand cars in China and robust sales in Europe, it said on Friday.

New vehicle registrations at the multi-brand group increased to 947,600 passenger cars, commercial vehicles and heavy trucks, VW said on Friday, from 885,200 a year earlier.

That’s the biggest monthly advance since April 2014 when VW posted a 8.2 percent gain, and shows the group may be coping with the impact of its emissions scandal uncovered more than a year ago.

“The increased deliveries make us optimistic we will be able to master the upcoming challenges,” group sales chief Fred Kappler said.

September sales were helped by a 20-percent jump in China, VW’s biggest market, and persistent growth in Europe where VW sells about 40 percent of its vehicles. The 6.3 percent gain in its home region was the second-biggest monthly gain this year.

Improving sales may lessen the pressure on the carmaker’s top management and labour leaders to consider job cuts as both sides are struggling to agree an outline for cost cuts and strategy at the core VW brand.

Deliveries of VW’s largest division were up 6.7 percent last month to 547,700 cars, with growth in China, Europe and even Russia offsetting declines in the Americas.