VW Sales Down 1.7% in May image

VW reported sales in May down 1.7% to 38,913 units, even if the Passat has its best May ever.

Not only did the Passat hit its best May ever thanks to the TDI diesel version, but VW is accounting for 72% of all diesel vehicles sales in the US and 22.3% of the VW sales. The automaker’s U.S. CEO Jonathan Browning said that auto sales are 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.

VW plans to develop a mid-size SUV, to be placed between the small Tiguan and the larger Touareg, a model which will help the automaker gain some ground in the key part of the U.S. market.

“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.

Sales of the Passat increased 0.9% to 10,267 units, the Beetle jumped 23.9%, the Jetta, which is VW’s best seller, increased 4.8%, the Tiguan rose 6.5%, while all the other models dropped. The Audi brand reported a sales increase of 15% to 13,228 units, a record May and also the 3rd best month until now in the US. The Q5 small crossover increased 45% to 3,380 units, the Q7 three-row jumped 38% to 1,269 units, while the A4 dropped 3.1 to 2,946 units.

Source: usatoday.com