2007 Sales

VWoA reports their sales.

http://www.media.vw.com/

VWoA reported their January Sales up 2.3%.
VWoA reported their February sales up 0.2% ( two tenths of one percent).
VWoA reported their sales for the year up 1.3%.
These are very disapointing figures for VWoA. They have been advertising very heavily ( “”unpimp your ride”" “”Three dubs for under 17 thousand”"). They have “”decontented”" their cars to make them cheaper. They are selling their cars at a substantial loss. Yet sales only climb a tiny increment.
VWoA has stated that they want to increase their sales from 235,000 to 500,000. The asteroid will hit the planet before this happens.

36 Comments »

  1. 297 Said,

    March 3, 2007 @ 11:40 am

    - Retrospective: in 1993, VW sold little over 49,000 cars. They’ve quadrupled that number in the last 15 years. Doubling it may not be as hard as you think, particularly once they get over the 2007 issue of TDI emission acceptance (sad that a VW TDI since 1996 can run 100% clean biodiesel and yet emission policies hinder their entry to the US) and bring them back in 2008 to compete against the hybrid, which despite the hype manage only about 40MPG and still burn gasoline, plus plans for a cheaper, smaller SUV (the Tiguan), may allow them to hit that goal.

    I didn’t know they were selling at a loss. Where did you read that? It’s a risky maneuver, but selling at a loss has kept American makes afloat and allowed Toyota to saturate the hybrid market (they hit the ground running selling the first generation Prius at around a $16,000 loss).

    Never count the company out, particularly since the parent, VAG, is doing very well.

  2. VWVictim Said,

    March 4, 2007 @ 4:20 am

    Losses – VWoA had losses of more than one billion dollars in 2005. VWoA stated that they wanted to reduce their losses to $800,000,000. in 2006. VWoA projected that they would return to profiability by 2008. After last years disappointing sales figures VWoA stated that it would be 2009 before they returned to profitability. Looking at VWoA’s current sales figures I have doubt that VWoA will return to profitability anywhere in the forseeable future.
    If VWoA had in fact reduced their losses to $800,000,000 in 2006, that would still amount to over $3,000. per vehicle loss for the 235,000 vehicles that they sold.

  3. VWVictim Said,

    March 4, 2007 @ 4:35 am

    Breaking The Unions Spine – VAG received concessions from the unions in Germany. They went from a 28.8 hour work week to a 33 hour work week. This helped to keep VAG profitable. But it was only a band aid. In order to keep VAG profitable in the face of the world market unslaught and to keep subsidizing VWoA, VAG is going to have to destroy the unions. They simply cannot afford to maintain the highest paid, lowest productivity work force while competing in the world market. VAG is going to have to move production out of Germany. It is inevitable.

  4. peterd1965 Said,

    March 4, 2007 @ 11:39 am

    - I had a customer buy a Nissan over a VW in early nineties because it looked like VW would be going the way of Fiat, Peugeot, Alfa, etc and leave the US market. A few years later it was seemed Nissan might be leaving the same way. Nissan used low lease rates to put more Nissans on the road until more appealing products arrived and the Ghosn turned it around. If gas prices continue to climb VW could have a very strong footing as THE diesel provider; of course long term quality is must as well.

  5. VWVictim Said,

    April 3, 2007 @ 11:38 am

    March 2007 Sales Figures – VWoA ( http://www.media.vw.com ) reported their March 2007 Sales Figures. Sales for March of 2007 were down 16.3% from March of 2006 sales figures. Year to date figures for 2007 were down 5.6% from the same time figures of 2006.
    People simply do not want to buy VW’s piece of crap cars. You can only screw the buying public so many times.

  6. VWVictim Said,

    May 1, 2007 @ 1:03 am

    April 2007 Sales Figures – VWoA announced their April 2007 sales figures ( http://www.media.vw.com ).
    Sales for April of 2007 were down 7% from April of 2006 figures.
    Year to date sales figures for 2007 were down 6% from 2006 figures.
    VW’s reputation precedes it. The downward spiral continues.

  7. YupOldBull Said,

    May 5, 2007 @ 10:21 am

    VW Sales in China? – The “”global”" reports are too confusing.

    I didn’t even know that VW had offerings in China.

    China is second to the United States in production? Overtaking the Japanese? Do the Toyota’s produced in the US count as US production?

    “”The Chinese vehicle market overtook its Japanese counterpart in 2006 to become the world’s second largest, behind the United States, and it will continue this momentum in 2007, although a slower overall growth rate is anticipated from the combined vehicle sales of 7.3 million units that were posted in 2006, which translated into y/y growth of 24.1%. Global Insight forecasts that the combined Chinese vehicle market will grow by a slower rate of 15.1% in 2007, in line with March’s growth in the passenger car market. Although intense price competition will keep sales robust, there is set to be a number of limiting factors to growth. As well as the aforementioned reduction in pent-up demand, high fuel prices and the increasing strain on transport infrastructure as China’s economy grows are also likely to contribute to slower overall growth.”"

    Source:

    Global Insight

    Any way you cut it, VW sales are still hurting. (and have for years) It is a huge ship, but it has a slow leak in the bilge.

  8. VWVictim Said,

    June 6, 2007 @ 9:34 am

    May Sales – VWoA reported May sales figures ( http://www.media.vw.com ).
    Sales for May 2007 were up 1% from May 2006 sales.
    Year to date sales figures for 2007 are down 4.4% from the same time in 2006.

  9. VWVictim Said,

    June 11, 2007 @ 9:32 am

    Outstanding Performance – I must commend Adrian Hallmark’s outstanding performance. The fact that anyone could sell VW’s with VW’s reputation is a tribute to Hallmark’s diligence.
    With VW’s reputation for selling horrific cars with massive quality control problems, it is truly amazing that anyone would buy a VW. I expected VW sales to plummet to nothing, and yet they are still selling nearly as many cars as they did last year. That is amazing. Those many of us that have been screwed by VWoA must redouble our efforts to get the truth about VW out to the public.

  10. 297 Said,

    June 12, 2007 @ 1:30 am

    It might also be because the MkV is not that bad. – And VW has cut prices and are actually planning on keeping the MkVI, already set to debut in Europe in 2009, from reaching the US until as late as 2012 as they concentrate on getting out a MkV car for under $15,000.

  11. VWVictim Said,

    June 15, 2007 @ 1:32 am

    I Was Being Glib – The MkV has developed a litany of problems, the usual for VW.
    VWoA introduced new Jettas and Passats. They advertised them heavily. They “” decontented”" them in order to cheapen them.
    Sales went nowhere.
    A VW is still a VW. Overpriced piece of junk.
    With a horrible dealer network.
    And a parent company that will not stand behind their product.

  12. Bolo Said,

    June 15, 2007 @ 5:19 am

    - Whoa! what’s that about VW holding back the Mark VI till 2012!? That will just give VW proponents in the US another excuse of VW sales being down because the product line as gone stale again. Why don’t they just set a goal of getting the car right the first or maybe even second year the car is out.
    BTW, well said VWVictim, About the bottom line problems with Volkswagens.

  13. 297 Said,

    June 15, 2007 @ 10:46 am

    - Whoa! what’s that about VW holding back the Mark VI till 2012!?

    Bear in mind that the MkV was out in Europe three years before it arrived in North America, and so is already about five years old (the going trend appears to be a new platform every five years for all makes), so it may seem new to you, but the MkV is actually pretty much at the end of its run.

    There are a few reports saying that the MkVI may have a European debut by April 2008. But if the same delay occurs, then North America won’t see it till 2011. Still, it’s mainly speculation. A lot has happened in the last year for VAG, both good and bad, and the effects of those events have yet to manifest.

    Good news for some old fans is that the re-envisioned Scirroco, after some doubts, will be delivered to the US market after all.

  14. VWVictim Said,

    July 3, 2007 @ 3:03 am

    June Sales Up 15% – VWoA announced June Sales figures ( http://www.media.vw.com ).
    Sales for June 2007 were up 15% from June 2006 figures.
    Year to date figures for 2007 are down 1% from 2006 figures.
    VWoA is advertising heavily and is selling their vehicles at a loss. They are trying to buy back market share that they lost to their reputation for poor quality and service. It will be interesting to see if VWoA can overcome their horrible reputation. I suspect that VWoA’s losses for 2007 will be in the billion dollar range again.

  15. VWVictim Said,

    August 1, 2007 @ 1:29 am

    July Sales Down 13.1% – VWoA ( http://www.media.vw.com ) reports that sales for July of 2007 are down 13.1% from July of 2006 figures. Year to date sales figures are down 3.0%.
    Despite the cut in prices and the heavy advertising, VWoA is finding it hard to overcome their reputation for producing junk. Their reputation for poor service and not standing behind their cars precedes them. Apparently the American car buyer is not as stupid as VW thinks they are.

  16. VWVictim Said,

    September 4, 2007 @ 1:36 am

    August Sales Down 7.5% – VWoA ( http://www.media.vw.com ) reports sales for August 2007 are down 7.5% from August 2006 figures. Year to date sales figures are down 3.6% from the same time period in 2006.
    I said it before, and it is even more so now. It would be incredibly stupid to be buying a VW at this point in time.

  17. 297 Said,

    September 4, 2007 @ 3:43 am

    Oddly enough, people seem to think it’s a great time to buy a Rabbit or Eos. – VW Sales Report August 2007

  18. VWVictim Said,

    September 4, 2007 @ 3:56 am

    Rename All Their Cars! – VWoA should rename ALL their cars. That way next year VWoA will be able to say that ALL their cars have increased in sales! Overall car sales will still be down but VWoA will have bragging rights! Brilliant strategy! Wendy Weidiking should fly over from Germany and personally thank Hallmark for this brilliant innovation!

  19. 297 Said,

    September 4, 2007 @ 4:08 am

    - The Eos isn’t a renamed car. The Rabbit is compared to last years sales of the same Rabbit, though if you go ahead and add the Golf numbers the jump isn’t 260% but 125%, still more than double than that of last year.

    The only MkV that isn’t doing so well is the Jetta, which is -8.5%.

    The New Beetle will going down since it’s still on the MkIV chassis. I expect it to disappear entirely by 2009, as scheduled.

    The Passat, Touareg and Phaeton are where they are down significantly, though VW seems to be calling it a wash and concentrating on selling the MkVs, if their summer ad campaign was any indication. They’ve got plans for 2008 and 2009 to revitalize this end… I’m not confident about it, though I am more pleased to hear about their efforts to produce a $15k car.

    As for the iCar thing with Apple… that’s just bizarre. But hey, sure, why not.

  20. VWVictim Said,

    September 4, 2007 @ 4:29 am

    The VAG Juggernaut – Under their current setup VAG could not produce a car for the North American market for $15K without losing $3K per car. Even if you do sell 500K of them you are still losing. And VWoA cannot continue losing Billions of dollars in the North American market while VAG continues to demand more and more from the unions.

  21. VWVictim Said,

    September 4, 2007 @ 4:31 am

    The VAG Juggernaut – Under their current setup VAG could not produce a car for the North American market for $15K without losing $3K per car. Even if you do sell 500K of them you are still losing. And VWoA cannot continue losing Billions of dollars in the North American market while VAG continues to demand more and more from the unions.

  22. VWVictim Said,

    September 4, 2007 @ 4:34 am

    Double Posts – I have no idea why everything is posting double.

  23. 297 Said,

    September 5, 2007 @ 12:57 pm

    Correct. That’s why these changes indicate a change in setup. – Building a plant in the US means cheaper production and transport compared to production in Europe and even America south of the Texas state line.

    Furthermore, the MkVI, which is in accelerated startup and is due out next year in Europe, is designed to be cheaper to produce.

    So yes, a MkV can never be $15k or under. A MkVI? If the claims are true, it’s certainly doable.

    I have no idea why you are posting double, either.

  24. VWVictim Said,

    October 2, 2007 @ 6:52 am

    September Sales Down 5.9% – VWoA ( http://www.media.vw.com ) reports that sales for September of 2007 were down 5.9% from September of 2006 figures. Year to date sales are down 3.9% from same time last year figures.

  25. VWVictim Said,

    November 1, 2007 @ 11:19 am

    October Sales Up 8.3% – VWoA ( http://www.media.vw.com ) reports sales for October of 2007 up 8.3% from October 2006 figures. Year to date figures for 2007 are down 2.9% compared to same time in 2006. If VWoA can maintain this momentum sales for 2007 will only be down slightly from 2006 figures. This is outstanding performance considering the junk that VWoA is trying to foist on the American public.

  26. YupOldBull Said,

    December 1, 2007 @ 11:54 am

    VW is failing badly in the U.S…….. But does the company understand what its North American customers want? – Business Week Article 7/23/07

    It is a terrible company with big troubles.

    Edited by YupOldBull on 12/01/07 at 11:56 AM

  27. VWVictim Said,

    December 3, 2007 @ 8:37 am

    November Sales – VWoA (www.media.vw.com) reports sales for November 2007 up 3.6% from November of 2006 figures. Year to date figures are down 2.4% from same time figures in 2006. VWoA will have to have a MASSIVE sales increase in December in order to match 2006 figures. VWoA has been advertising extensively and has been giving enormous incentives. Yet they still barely pique interest. The problem is that they are selling VOLKSWAGENS!

  28. VWVictim Said,

    January 3, 2008 @ 3:12 am

    December – Volkswagen Group of America ( VGoA ?) reports (www.media.vw.com ) sales for December of 2007 were up 3% as compared to December of 2006 figures.
    2007 sales figures were down 1.9% as compared 2006 sales figures.
    A very disappointing year for VGoA(?). They introduced new models, advertised like crazy, offered incentives ( something they sneered at a few years ago) and tried to make every effort to increase sales. Yet their sales went down. They have to realize that they are selling VWs. This is the age of instant communications. The public knows what pieces of shit VWs are!

    Edited by VWVictim on 01/03/08 at 3:13 PM

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