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Automobile industry

Volkswagen Sales Plummet by 20% Amidst Diesel Emissions Scandal

Strategic Insights

— 1 min read

Volkswagen's woes continue as the company's sales have declined by almost 20% in the wake of the diesel emissions scandal. This comes after the manufacturer admitted to fitting sophisticated software to cheat emissions tests, affecting 11 million vehicles worldwide. The Society of Motor Manufacturers and Traders (SMMT) reported a 19.99% decrease in VW registrations, with other brands such as Seat, Skoda, and Audi also experiencing significant drops. While the overall car industry saw a 3.8% increase in registrations, the emissions crisis is clearly having a devastating impact on VW's sales.

Key Takeaways:

  • Volkswagen sales fell by 19.99% in November, compared to the same month last year, with 12,958 registrations.
  • Other VW brands, including Seat and Skoda, also experienced significant declines: Seat by 23.83%, and Skoda by 10.98%.
  • The emissions crisis is hitting VW's sales, with Jim Holder, editorial director of magazines Autocar and What Car?, stating that VW has lost the trust of buyers, leading to a decline in sales.
  • The company has set aside 6.7 billion euros ([pounds sterling]4.8 billion) to deal with the controversy.
  • VW's chief executive, Martin Winterkorn, resigned in response to the scandal.
  • The manufacturer accepts the defeat device software was used to rig pollution tests in the US, and a laboratory test commissioned by the BBC's Panorama programme found that VW diesel cars can cheat European emissions tests.
  • The scandal deepened further when VW revealed irregularities in carbon emissions affecting 800,000 vehicles.

Statistics:

  • 12,958: The number of VW registrations in November, down from 16,196 in November 2015.
  • 19.99%: The decline in VW sales in November.
  • 23.83%, 10.98%, and 4.41%: The declines in sales for Seat, Skoda, and Audi, respectively.
  • 6.7 billion euros: The amount set aside by VW to deal with the controversy.
  • 178,876: The number of cars registered in November, up by 3.8% from 172,327 in the same month last year.
  • 2,310,237 and 2,453,426: The number of cars sold in the UK in the corresponding years.

Sources:

  • Society of Motor Manufacturers and Traders (SMMT)
  • BBC's Panorama programme
  • Autocar and What Car? magazines
  • Society of Motor Manufacturers and Traders (SMMT) report
  • Volkswagen press release

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