Why Volkswagen Will Race Ahead Of Auto Peers

864 Words Jan 31st, 2018 3 Pages
Although the U.S. is one of the Volkswagens smaller markets, it is a top seller in the Europe and China. As the company aspires to become the global industry leader by 2018, here are a few reasons to back up its ambitious claim.

European auto industry poised for a rebound
Europe’s beleaguered auto industry endured a six-year slump, with auto sales falling to the lowest level in nearly two decades, as a sluggish economic recovery put a brake of spending. However, going by the recent data trend, the industry is headed for a revival this year. European auto sale increased 7.6% in February, marking the sixth-straight month of sales increase, as steady economic recovery in Italy, Portugal and Spain spurred demand for new cars, according to the Association of European Carmakers (ACEA). The improving consumer confidence, amid a recovering economy, is likely to drive a 2% to 3% upside in 2014.

Volkswagen, Europe’s biggest automaker, is best positioned to benefit from the auto industry rebound. As a matter of fact, it has significantly helped the region’s improved sales in recent months, posting rises of 8.9% and 7.2%, respectively, in January and February this year. If demand holds up, Volkswagen can considerably outperform the regional market this year. Furthermore, global auto sales…
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