Volkswagen AG reported its weakest monthly growth rate to date this year, making it issue a warning that business has become difficult. VW said that in July, it delivered 572,200 vehicles, 2.9% increase from a year ago. This is a marked drop from the double-digit increases that it has had in recent months.
In a statement, sales chief Christian Klingler said that in the next months, VW will still be on its growth path with its model range and that it will outpace its rivals. But he says that this will be a challenge since this goal is placed in an operating environment that is again becoming difficult.
Klingler added that since the incentive programs have ended, the global automotive market is expected to drop in the second half of the year. He also doesn't think that European sales will return to the pre-crisis levels this year.
Even so, group vehicle sales went past the 4 million mark for the first time ever during the first seven months of 2010, due mainly to the success of its core VW and Audi brands in China.
In a statement, VW said that aside from the Golf family and the Tiguan, the demand in China for the Lavida, Passat Lingyu, Jetta and New Bora models had been incredibly high. Volkswagen has set a goal to surpass Toyota Motor Corp. in deliveries and profitability by 2018.