After regular declines even previous to the diesel emissions scandal of almost two years in the past, Volkswagen of America took one other critical hit in 2016 — the perfect yr on report for the auto trade. In contrast with 2012, Volkswagen quantity sank by 85,000 gross sales final yr.
However by the top of 2016, Volkswagen’s U.S. gross sales quantity was starting to rise once more. True, that rise was compared with a real low — Volkswagen gross sales within the closing one-sixth of 2016 have been up 22 p.c year-over-year however have been 17-percent decrease than in the identical interval of 2012 — however Volkswagen was bouncing again.
The bounce again continued via the primary half of 2017, with Volkswagen gross sales via June up eight p.c regardless of the market’s 2-percent downturn.
Maybe July was only a blip on the radar. However Volkswagen’s eight-month streak of enchancment screeched to a halt final month because the U.S. auto trade reported its most important losses of the yr, and as Volkswagen’s new SUV lineup continues to dip its toes in American waters.
The Tennessee-built Volkswagen Atlas, in line with Volkswagen, continues to be ramping up manufacturing. Although Automotive Information stories 23,950 have been constructed by the top of June, solely 5,329 copies of the Atlas had been offered within the U.S. by the top of July. In truth, July’s U.S. gross sales whole fell to 1,306 models, the lowest-volume month to this point; 46-percent decrease than June.
However it’s early days for the Atlas, and even earlier days for the brand new Tiguan. Whereas gross sales of the previous Tiguan plunged 56 p.c to 1,484 models — keep in mind, previous Tiguan will stay on — gross sales of the new new Tiguan totalled 593 models in its first month available on the market.
Even with the discontinued Volkswagen Touareg reporting a 54-percent soar to 475 models and new merchandise coming onstream, Volkswagen’s SUV/crossover quantity rose solely 5 p.c to a modest three,858 models in July, not almost sufficient to beat Volkswagen’s passenger automotive losses.The excellent news for Volkswagen? The model’s SUV/crossover quantity will certainly rise. The second bit of excellent information? Volkswagen’s automotive lineup isn’t dropping gross sales almost as rapidly because the automotive market total. July’s 7-percent drop amongst Volkswagen’s automobiles was nothing in comparison with the 15-percent drop skilled by the U.S. auto trade’s total automotive sector. 12 months-to-date, whereas U.S. automotive gross sales are down 12 p.c total, Volkswagen’s automotive lineup is definitely up 7 p.c, boosted by wagon quantity.
42 p.c of the Golfs offered in America through the first seven months of 2017 have been SportWagens and Alltracks. With modest Beetle and Passat rebounds and solely a slight Jetta downturn, Volkswagen is the uncommon breed in 2017 to provide total features as a result of of automobiles, moderately than regardless of them.
Sustaining such a unusual progress technique just isn’t tenable, in fact, not in these prevailing market situations. However Volkswagen intends to promote a a lot better variety of utility automobiles within the close to future. And if Golf wagons preserve promoting in respectable numbers? You gained’t hear us complaining.
[Images: Volkswagen of America]
Timothy Cain is a contributing analyst at The Reality About Vehicles and Autofocus.ca and the founder and former editor of GoodCarBadCar.web. Observe on Twitter @timcaincars.