VW Said to Expand Model Lineup in Brazil from 2014 image

VW, Europe’s largest automaker, wants to expand its lineup in Brazil starting with 2014, according to an anonymous source.

The WirtschaftsWoche newspaper published a report on Saturday, July 6th, according to which VW will introduce ne models in Brazil, including the Up city-car, the Taigun small SUV and a new version of the Fox compact. VW’s escape form the European whirl is the company’s expansion in emerging markets such as Russia, Brazil and China.

VW reported sales in May down 1.7% to 38,913 units, even if the Passat had its best May ever. The automaker’s U.S. CEO Jonathan Browning said that auto sales were being affected by strong light truck sales, such as SUVs and pickups. Since VW has no SUVs and no pickups, there is no sales increase.

“Volkswagen’s meteoric rise appears to be over, in part, because it isn’t able to ride the wave of strong pickup truck sales. Achieving its lofty goal of 800,000 vehicle sales by 2018 looks challenging now,” says Edmunds.com analyst Michelle Krebs.

From January to May the group’s brands sold 1.53 million vehicles, down 3.5% in Europe, and 473,100 units, down 3.3% being sold in Germany. Sales in North America increased 13% to 360,000 units, with 249,300 units sold in the US, up 11.2%. In South America sales dropped 0.4% to 375,400 units and in China sales reached 1.28 million units, up 18.2%.