The European Crisis May Force VW Cut Production Target by 300,000 Units image

The debt crisis in Europe made Volkswagen cut its full-year target by 300,000 vehicles.

The German daily Handelsblatt cited Volkswagen sources according to which the company has cut its expectations regarding the European sales for this year by 250,000 cars. The automaker has not yet published any change in its targets and also declined to comment.

For the first eight months of the year VW’s sales increased 9.1% to 5.19 million euro ($6.56 million), but the automaker is aware that the situation in Europe is still tense. Volkswagen is currently Europe’s largest automaker, and it plans to boost sales to 10 million vehicles by 2018, trying to surpass Toyota and GM and become the world’s biggest carmaker.

Several days ago Volkswagen denied a report published by a German magazine according to which the company plans to cut production by 10% in Europe this autumn. VW’s spokesman said that the situation in some markets is indeed alarming and that the months to come will be more challenging and difficult when it comes to achieving sales targets.

“The given scenarios are speculative and factually not correct,” a spokesman for the German carmaker said on Sunday of the report in Automobilwoche.