Volkswagen has cut its sales forecast for full year 2012 by around 300,000 vehicles due to the vulnerable European economy, according to a report published by Handelsblatt. The report said that in Europe alone, the carmaker slashed its sales forecast for full year 2012 by about 250,000 vehicles. VW, however, has not disclosed any vehicle sales targets for 2012.
The carmaker said in August that the economic setting in Western Europe remains tense. VW denied a report by Automobilwoche, a sister publication of Automotive New Europe, that it was bracing for an economic slowdown and had informed suppliers that it was mulling reducing production by around 10 percent in the autumn. At the time, VW’s spokesman said that the situation in some markets was "tense" and the coming months would be significantly more difficult and demanding.
The spokesman, however, said Friday that the carmaker was still doing well. For the first seven months of 2012, VW Group posted a 9.1 percent year-on-year increase in vehicle sales to 5.19 million units, driven up by growth regions outside Western Europe.
In China alone, VW Group posted a 17 percent jump in sales for January-July 2012 period to 1.51 million units. In the United States, the VW Group logged a 30 percent hike in vehicles sales for the same period to 324,200 units.
Those figures were in sharp contrast to the Group’s performance in Western Europe, except Germany, which dropped 5.9 percent to 1.15 million units for the first seven months of 2012.
In its home market, Germany, VW Group posted a 4.4 percent surge in sales for the concerned period to 708,100. However, VW succumbed to a slowdown in underlying profit growth in the second quarter of 2012, partly because its earnings were negatively affected by the current debt crisis in Europe.