Volkswagen Posts Positive Sales Despite Emission Test Scandal


While shares in Volkswagen plummeted after the car making giant was forced to admit they had cheated on emission tests on some of its vehicles powered by diesel fuel, September and October sales have come back better than expected, remaining stable in the face of the scandal.

Strong Showing outside Russia and Brazil

While the number of vehicles sold went down by 3.5% during October, the drop can mainly be blamed on Russia and Brazil, and the difficult economic situation that currently exists in those two countries. When those two markets are excluded, sales actually went up for both months looking at year on year sales.

Volkswagen’s crucial markets, which include two of the world’s top economies U.S. and China, saw the numbers of sales increase, proving that the scandal may have had little impact on potential buyers. While worldwide sales for last month are not available as of yet, the numbers for the U.S. are in, and they are showing a drop in sales for the company’s VW brand. The reason for this, however, can probably be attributed to the fact that Volkswagen stopped selling some of the models carrying its flagship brand, meaning that the numbers not really truly comparable.

Shares Rebound

The sales figures have certainly affected Volkswagen’s share price, as its value has increased around 25 percent over the last two months. At this point the company’s stock is trading around its pre-scandal lows, meaning that the market seems to have accepted the fact that things are not as bad as it had seemed immediately after the scandal.

The company is still trading under its book value, however, and is still depressed compared to its value only a few weeks ago. This means that even with the recent gains, the stock is still a potential investment opportunity when compared with its competitors.


Leave A Reply