Volkswagen sales fall further

Volkswagen sales fall further
By Euronews  with Reuters

Volkswagen's sales fell further in February following the German carmaker's rigging of diesel engine emissions tests in the US. Sales in Europe did rise 3.7 percent.

Volkswagen’s sales fell further in February following the negative publicity from the German carmaker’s rigging of diesel engine emissions tests in the US.

The brand’s total deliveries were down 4.7 percent.

China, which is the world’s largest single market, saw demand fall 3.0 percent.

In the United States the slump was 13.2 percent.

South America and the Asia Pacific region also declined, but sales in Europe rose 3.7 percent.

At the same time it was reported VW will cut around 3,000 office jobs in Germany by the end of next year to offset costs from the scandal.

The reports came from Germany’s dpa news agency as well as Reuters quoting sources in the company who did not provide details of where the cuts will come.

Europe’s largest automaker is reducing investment by one billion euros this year compared with 2015.

It will do that partly by shedding hundreds of temporary jobs and ceasing production of unprofitable models.

A VW spokesman would only say: “The Volkswagen brand has initiated an efficiency programme that is affecting all areas, including personnel costs.”

Costs can be cut by reducing temporary work contracts, filling vacancies internally and making fewer hirings, the spokesman added, declining to be more specific.

Porsche, which is owned by VW, but which was not involved in the scandal, announced on Friday that its 2015 sales were up 25 percent at 21.5 billion euros and its profit before tax also rose 25 percent to 3.4 billion euros.

Porsche said it expects sales to rise slightly in 2016, but profit will be little changed.

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