VW’s European auto sales, market share slip after emissions scandal

This past Wednesday, the Kraftfahrt-Bundesamt (KBA) regulator had mentioned that though the investigation was brought on by Volkswagen’s scandal, there was also “verified indications from third parties regarding unusual pollutants emissions” in other brand’s vehicles.

VW has said it hired advisory firm Deloitte and United States law firm Jones Day to investigate under what circumstances the company installed software into diesel cars that changed engine settings to reduce emissions whenever the vehicle was put through tests.

Volkswagen halted sales of a few of its models soon after the scandal broke in September, and is now counting the losses.

For the first 10 months of the year, registrations were up by 8.2 percent, translating into 11.5 million new cars on European roads. Volkswagen sales slipped 0.2 percent, while all of Volkswagen sales, including also SEAT, Skoda, Porsche, Audi and Lamborghini, dropped 0.5 percent.

Volkswagen is struggling to cope with the biggest crisis of its history over its admission in September that it had fitted 11 million vehicles with devices created to cheat pollution tests. The company is struggling with weakening sales, especially in emerging markets.

Britain is to launch an inquiry into the system used to approve vehicles, including their emissions levels, in the wake of the diesel engines scandal engulfing Volkswagen.

ACEA’s estimates for market share still placed VW as the largest manufacturer in Europe, with 12.3% of total sales across the European Union, slightly down from the 12.7% posted in October 2014.

It also said that it is already in dialogue with the respective countries’ financial and fiscal authorities so that all taxes arising in direct relation to the Carbon dioxide issue are charged straight to the Volkswagen Group and not to the customers.

Volkswagen has not acknowledged any impropriety, although it did stop sales of all affected models.

VW’s drop in sales in October, however, compares with a rise of 8.3% the previous month. Four of Europe’s five biggest vehicle markets expanded, with gains of 1.1 per cent in Germany, one per cent in France, 8.6 per cent in Italy and 5.2 per cent in Spain.

A “small but significant” number of owners have told the magazine that they no longer want their cars, Mr Holder said, as they viewed the vehicles as “damaged goods”.

Daimler’s Mercedes-Benz premium marque sold 11pc more cars in Europe.