VW Group: Global sales falling from April 2015
First-half revenue and profit grow over 10% due to euro depreciation
The VW Group had another record year in 2014 in terms of unit sales, sales revenue, and operating profit. And in the first half of 2015, the VW Group became the global leader, surpassing Toyota in terms of unit sales, or vehicle deliveries, worldwide. However, since April 2015, its deliveries have started to decline and the Group's global sales in the first half of the year declined 0.5% to 5.04 million units while Toyota's unit sales fell 1.5% to 5.02 million units.
Deliveries in China, the VW Group's largest market, began to decrease from March. And in the struggling markets in Russia and Brazil, the Group's deliveries fell 3.9% in the first half of 2015. The y/y decline has continued to grow, reaching 13.6% in July. While deliveries rose in North America and Western Europe, they were not large enough to offset the negative growth in emerging markets.
VW-brand passenger cars, the best-selling brand among the VW Group brands, experienced a 3.9% decline in unit sales. And the brand's low profitability has not recovered, even though its operating profit grew 2.7% y/y.
The Group's performance in the first half of 2015 increased in terms of sales revenue and operating profit, thanks to the depreciation of the euro and higher sales of more lucrative brand vehicles such as those built by Audi and Porsche.
Since the VW Group's operating structure has become too large to be easily managed, the Group is reportedly going to be reorganized into four holding companies to enable faster decision-making.
Sales in China drop to 1.5% in first half of 2015 (Aug. 2015)
VW expects to sell 10 million units in 2014, compete for global sales lead (Sep. 2014)
Global sales in 2014: Passenger car sales increase by 4.9%, VW-brand passenger cars barely increased, by 1.6%
The VW Group's global vehicle sales in 2014 increased 4.2% y/y, from 9.73 million units in 2013 to 10.14 million units. Sales of passenger cars alone increased 4.9% y/y, from 9.05 million to 9.49 million units, of which 2.91 million units were sold in Western Europe (up 6.5%), 880,000 units in North America (unchanged), and 3.67 million units in China (up 12.3%). (In 2014, 38.7% of the Group's global sales were generated in China.) The Group saw sluggish sales in South America, with deliveries declining 17.0% to 690,000 units, due to slow sales both in Brazil and Argentina.
Among the Group's brands, the high-profit earning brands, Audi and Porsche, increased their deliveries by more than 10% to 1.74 million units and 190,000 units, respectively. A total of 6.12 million VW-brand passengers cars were sold, which was a slight increase of 1.6%. Sales of SEAT vehicles in 2014 increased 10.0% to 390,000 units, but the unit posted an operating loss for the full year.
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