Sunday, January 07, 2007

Record deliveries for the Volkswagen Brand in 2006

According to Volkswagen, they have sold more vehicles in 2006 than ever before in their history, totalling 3.395 million vehicles delivered worldwide. That is a jump of 10% over 2005 sales. Volkswagen says that along with their jump in vehicle sales globally, their market share has also increased. In Germany, their market share has increased from 18.6% to 19.9%. In Western Europe (including Germany), market share rose to 11% from 10.3%. Volkswagen has achieved a surge in vehicle sales in various regions around the world.

More details after the jump.

Source: Volkswagen AG
WOLFSBURG, Germany - The Volkswagen Passenger Cars brand sold more vehicles last year than ever before in the history of the company. A total of 3.395 million vehicles were delivered to customers worldwide in 2006, representing a 10.0 percent increase on the previous year.

“Growth was noticeably stronger for the Volkswagen brand than for the world market in 2006. Key markets recorded quite significant growth in some cases. With these record figures, Volkswagen has strengthened its position as one of world’s largest automakers,” Dr. Wolfgang Bernhard, chairman of the Volkswagen brand board of management, commented in Wolfsburg.

He added that growth had been particularly strong for Volkswagen in Germany and Europe. “Although Germany remains a hard-fought market characterized by high discounts from competitors, we have nevertheless seen a noticeable rise in sales and have increased our market share from 18.6 to 19.9 percent.” He emphasized that Volkswagen had not bought its way to growth. “We have combined our attractive models with product offerings from Volkswagen Bank and Volkswagen Service which bring genuine added value. These packages have convinced our customers.” He said Volkswagen would be continuing with this approach this year. “We focus on customer benefit, not on discounts.” As a result of the market strategy in Germany, Volkswagen models took pole position in six vehicle registration segments, in some cases with a significant lead.

Developments in Western Europe were also very positive. “We have not only defended our market leadership in Europe, but have further extended our lead,” Bernhard commented. In 2006, Volkswagen delivered 1.525 million vehicles in Western Europe (including Germany), 5.6 percent more than in 2005. The market share rose from 10.3 to 11.0 percent. Developments in Eastern Europe were also positive for Volkswagen. Growth in deliveries to customers was particularly strong in Russia, where 19,200 Volkswagen brand vehicles were sold, 59.6 percent up on the figure for 2005.

In China (including Hong Kong), Volkswagen remained the favorite passenger car brand, selling 625,000 vehicles, a year-on-year increase of 22.3 percent. “We made the turnaround in China in 2006”, Bernhard said. In the Asia/Pacific region (excluding China), deliveries rose by 11.5 percent to 88,000 units.

On the US market, which remains fiercely competitive, Volkswagen increased deliveries to customers by 4.9 percent to 235,000 vehicles.

2006 sales in South America and South Africa were also significantly higher that the previous year. 571,000 vehicles were delivered, representing a year-on-year increase of 15.0 percent. In Brazil in particular, Volkswagen recorded a strong 15.2 percent increase, with sales rising to 373,000 units.

For 2007, Dr. Michael Kern, the Volkswagen brand board member for sales and marketing, does not expect any noticeable easing of the competitive situation on the major automobile markets: “Stagnation or only slight growth can be expected for both Germany and Western Europe. It also looks as if the discount battles in the USA are set to continue.” He added that Volkswagen was, however, assuming continued strong growth on the Chinese market. “We will be doing our utmost to benefit as extensively as possible from this trend.” Dynamic development in Russia would also continue. He added that Volkswagen expected additional positive momentum when production at the new plant in Kaluga starts in the second half of the year. Volkswagen would also begin selling locally-built vehicles in India as early as mid-2007 and anticipated proactive involvement in dynamic market development there, too.

Bernhard emphasized that Volkswagen would be further enhancing quality, customer satisfaction and service orientation in 2007. “We already made significant progress in customer satisfaction last year with improved vehicle quality and innovative service concepts, and will be continuing along this path with uncompromising determination.”