For Volkswagen, Car Sales Remain Strong

As recently as one year ago, had you mentioned to most automotive analysts that Volkswagen (VW) would be the top performing automaker in the world, mostly everyone would have disagreed with that assessment sharply. No, VW isn’t selling the most cars in the world, but with a five percent year to date sales increase, the company’s outlook hasn’t ever been better.

Small Cars Is What Consumers Want

What is particularly interesting about VW’s sale surge is that they are selling more cars than ever before while some of its rivals (General Motors, Ford) are losing market share. The difference? Small cars– which is what consumers want — and China, a market where VW sells more cars than in its home German market.

But, the good news doesn’t stop just there. In the US market where just about every automaker is registering steep losses over 2007, VW is seeing a 5% boost in sales. VW attributes this increase to having one of the most fuel efficient lines of cars available in the US, cars like the Rabbit, Jetta, and the GTI. Just this past month the German automaker introduced a pair of new diesel models which are likely to serve as an additional catalyst for sales.

Selling More Cars In China Than In Germany

China remains Volkswagen’s biggest pride and joy as the automaker is now cashing in on an emerging market they first invested in more than two decades earlier. While many of the company’s competitors are new to China, VW is long established, a household name, and selling the types of cars China’s population wants.

In Brazil, VW’s sales are up by 22% for the year with even higher percentage increases in India, Russia, and the Ukraine. At the pace VW is going, the company can expect that 2008 will be their best year ever, an amazing feat considering that the global economy that is suffering its biggest challenges in more than a decade.

Excellent Business Advice

What is the moral of this story? If you have the right product available for consumers, then you’ll reap the benefits no matter how challenging the market may be. In the case of automobiles, people are always buying cars, but the cars that they are buying are small and fuel efficient, the bread and butter cars in the VW fleet.

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