The Volkswagen Group, the second largest automaker in the world and the biggest in Europe, has recently announced its monthly deliveries declined 2.6 percent in May, the second straight month of negative performance and with the decline accelerating.
The deliveries lost steam faster than in April, showcasing the carmaker’s troubled emerging markets, the current weak spot for the German company. The twelve-brand group, which include namesake VW and luxury automaker Audi or sports car maker Porsche, have gone down 2.6 percent to 858,000 autos last month. April’s drop was the first in more than four and a half years, sliding 1.3 percent year-over-year. “Deliveries so far this year have been characterised by mixed market trends. Even with their broad range of young and eco-friendly models, the Volkswagen Group brands are not entirely immune to this situation,” commented the group’s sales and marketing boss, Christian Klingler, in a statement. The automaker is currently looking to establish a new company structure to achieve its goals of increasing profitability and shed underperformance abroad.
The slide last month typically reflects the poor performance seen at the core brand, which announced earlier last week its May sales dropped 5.9 percent, as the namesake VW brand accounts for around 60 percent of group deliveries. The company saw a decline in the January through May sales in China, its largest single market, with deliveries down 1.1 percent to 1.49 million autos; while the situation in Latin America is becoming increasingly dramatic, with Brazil plummeting 30 percent.