In April 2019 the local Volkswagen factory sold 5 961 vehicles.
In the same period Volkswagen Worldwide sold 487 400 vehicles.
Based on the above VW South Africa accounts for 1.22% of the total worldwide sales. Not to mention that Africa DOESN’T even feature in the sales reporting press releases by the VW Head Office (see below).
The picture is much the same for all the other local manufacturers……
Which beggars the question; “Why are people in Port Elizabeth not spending far more time on developing an alternative industry to the motor manufacturing industry for JUST IN CASE one of the big manufacturers closes down or moves out as a result of unwanted pressure on the bottom line?” The consequences could be catastrophic.
Let’s face facts:
- Motor manufacturing is an industry that benefits hugely from a raft of Government Incentives – put another way; “Taxpayer money is being used to attract and keep them here and then we, with after tax money, buy vehicles.
- The bulk of the money made here makes it’s way offshore.
- We need to HEAVILY promote industries that entice money into our region, that is spent in our region and that STAYS in our region – like tourism.
In April, the Volkswagen brand delivered 487,400 vehicles worldwide, 6.2 percent fewer than in April 2018. In the month under review, there were gratifying developments in the USA (+8.7 percent), Canada (+11.1 percent), Russia (+7.3 percent) and Brazil (+7.7 percent). Deliveries by Volkswagen in China were down 6.5 percent but the brand was able to further increase its market share in a shrinking overall market. Volkswagen Sales Board Member Jürgen Stackmann: “We offer extremely attractive models in overall markets which are difficult and shrinking in many cases. In North America, our SUV offensive is bearing fruit and has had a positive effect on the monthly figures. China remains a severe challenge for us and all other market players.”
Deliveries in the regions and markets in April developed as follows:
- In Europe, the Volkswagen brand delivered 150,300 vehicles, 4.8 percent down on the same month last year. This was partly attributable to capacity restrictions for petrol engines, where demand is currently high. In Western Europe, there was a decrease of 5.1 percent to 126,800 vehicles. In the key markets of the UK and Italy, the brand handed more vehicles over to customers than in April 2018 and was able to slightly increase its market shares.
- In the home market of Germany, 48,800 vehicles were delivered to customers in April, 7.3 percent down on the figure for April 2018, which had been particularly strong as a result of the environmental incentive. The brand’s SUVs were especially popular here, with an increase of more than 18 percent compared with the previous year. Demand for the T-Roc, Tiguan and Touareg was particularly strong.
- The delivery figures for the Touareg also grew in Russia in April. Further impetus was provided by the Polo and the Tiguan, which were available as Connect special models throughout the market for the first time. In April, Volkswagen delivered a total of 9,600 vehicles in Russia, a rise of 7.3 percent. However, this positive development was insufficient to compensate for the falls in other markets of the Central and Eastern Europe region. In the region, a total of 23,500 vehicles were handed over to customers, representing a fall of 3.5 percent compared with April 2018.
- North America also developed positively in April. In the region, Volkswagen delivered 48,000 vehicles, corresponding to a rise of 3.9 percent compared with the same month last year. The largest single market, the USA, was the growth driver. Here, the brand handed over 31,300 vehicles (+8.7 percent) to customers. The popular SUV models Tiguan and Atlas accounted for over half of deliveries. In Canada too, Volkswagen recorded growth of 11.1 percent in deliveries. In Mexico, the situation remains difficult; deliveries there fell by 11.7 percent compared with April 2018.
- In South America, the largest single market of Brazil was unable to compensate for the poor situation in the region as a whole in April. In Brazil, Volkswagen boosted deliveries by 7.7 percent to 31,000 vehicles. However, this rise was offset by a fall of 54.5percent in Argentina compared with April 2018 – as a result of the difficult overall economic situation. In total, the brand delivered 38,900 vehicles in the South America region, 7.9 percent fewer than in April 2018.
- In the Asia-Pacific region, Volkswagen delivered 240,100 vehicles, down 7.4 percent on April 2018. In April too, this development was influenced most strongly by China, where customers remain reluctant to purchase despite a reduction in the VAT rate. This led to a contraction in the overall market, to which Volkswagen was not entirely immune. With 231,400 vehicles delivered to customers (-6.5 percent), Volkswagen developed better than the overall market and was able to increase its market share. The brand’s SUV offensive is now running at full speed. Especially thanks to the T-Roc and Tharu models, the share of the segment in deliveries by the brand was boosted to 21 percent in the month under review. The new Tiguan L plug-in hybrid and the Passat plug-in hybrid are also particularly successful.
Alan Straton
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