Volkswagen Denies German Magazine’s Report About Plans to Cut Production image

Volkswagen denied the report of a German magazine according to which it plans to cut production by 10% this fall in Europe.

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

The spokesman added 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. For the January-July period, the automaker reported an increase of 8.9% to 4.45 million cars, compared with the same period last month.

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. Although other European car makers have adopted the solution of temporary shutdowns and even closing factories due to the economic crisis, Volkswagen chose to focus more on the other markets and make up for the loss in Europe.

The automaker’s deliveries reached 468,300 cars and sport- utility vehicles, up from 418,600 units in 2011. Sales from January to July increased 10% to 3.26 million vehicles, compared to 9.5% over the same period last year.

“The Volkswagen Passenger Cars brand has grown global deliveries further, despite the continued difficult market situation, above all in western Europe,” Christian Klingler, the company’s sales chief, said in the statement.