The Economy

Volkswagen Reports Strong First Half But Sees Tough Road Ahead

July 13, 2012

While Volkswagen, which has been vying for the top spot as the world's best-selling vehicle maker, heads into the remainder of 2012 'with confidence,' a top executive cautioned that the next six months 'will be altogether more challenging.'

Josh Cable

Buoyed by a strong June, Volkswagen AG (IW 1000/10) said its delivered 4.45 million vehicles in the first six months of 2012, a nearly 9% year-over-year increase.

Volkswagen closed the first half on a high note, selling 798,500 vehicles, an 11% year-over-year increase.

However, the Wolfsburg, Germany-based automaker cautioned that the second half of 2012 could be an uphill battle.

"Deliveries by the Volkswagen Group developed very well in the first half of the year. But that is by no means cause for euphoria," Christian Klingler, Volkswagen Group's board member for sales, said. "The economic situation, particularly in Western Europe, remains tense and difficult."

While Volkswagen, which has been vying for the top spot as the world's best-selling vehicle maker, heads into the remainder of 2012 "with confidence," Klingler cautioned that the next six months "will be altogether more challenging."

Volkswagen reported mixed results in Europe.

While overall sales in the European market were up 1.8% to 1.93 million vehicles, they dropped 5.7% in Western Europe, excluding Germany.

In Central and Eastern Europe, sales were up 27.3%, while sales rose 4.4% in Germany.

Sales in North America were up 22.1% to 389,800 vehicles, according to the automaker.

Volkswagen's first-half sales in the Asia-Pacific region rose 17.6% to 1.48 million vehicles, including 1.3 million vehicles in China.

About the Author

Josh Cable | Former Senior Editor

Former Senior Editor Josh Cable covered innovation issues -- including trends and best practices in R&D, process improvement and product development. He also reported on the best practices of the most successful companies and executives in the world of transportation manufacturing, which encompasses the aerospace, automotive, rail and shipbuilding sectors.

Josh also led the IndustryWeek Manufacturing Hall of Fame, IW’s annual tribute to the most influential executives and thought leaders in U.S. manufacturing history.

Before joining IndustryWeek, Josh was the editor-in-chief of Penton Media’s Government Product News and Government Procurement. He also was an award-winning beat reporter for several small newspapers in Northeast Ohio.

Josh received his BFA in creative writing from Bowling Green University, and continued his professional development through course-work at Ohio University and Cuyahoga Community College.

A lifelong resident of the Buckeye State, Josh currently lives in the Tremont neighborhood of Cleveland. When the weather cooperates, you’ll find him riding his bike to work, exercising his green thumb in the backyard or playing ultimate Frisbee.