Volkswagen Brand’s U.S. Sales Fall 22% in Eighth Straight Dropby
Volkswagen AG’s namesake brand said its June U.S. sales fell 22 percent, a much steeper drop than analysts projected, for an eighth consecutive monthly decline as the German automaker tries to move past its diesel-emissions scandal.
Deliveries dropped to 23,809, Volkswagen said in a statement Friday. On average, analysts surveyed by Bloomberg predicted a 6.4 percent slide, after sales tumbled 17 percent in May. The Jetta line, the brand’s best-selling models, fell 22 percent from a year earlier while the Passat dropped 14 percent.
After admitting to U.S. regulators in September that it had manipulated engines to understate emissions, Volkswagen pulled its diesel-powered vehicles from dealerships. The automaker this week announced a $15.3 billion settlement in the U.S. for about 480,000 of the affected vehicles and is still reviewing a possible fix for 85,000 with larger engines.
VW’s June sales slide comes as analysts express concerns that the U.S. auto market is slowing and facing new headwinds from the decision by U.K. voters to exit the European Union. Even so, analysts surveyed by Bloomberg projected gains in June for all the six largest carmakers except General Motors Co. The average estimate for combined sales of Volkswagen’s VW and Audi brands was for a 0.9 percent decline.