US auto sales in February 2019
In this series so far, we have looked at February 2019 US vehicle sales of auto giants (IYK) including Fiat Chrysler (FCAU), Honda (HMC), and Toyota (TM). While all these three companies reported a YoY decline in their US sales last month, Honda reported solid gains of 4.6% YoY in its truck sales, which could help it improve its first-quarter profit margins. Now, let’s move on by looking at February US sales figures for European auto giant Volkswagen (VLKAY).
Volkswagen’s US sales fell
In February 2019, Volkswagen’s US sales went down by 3.6% YoY to 25,706 vehicle units. In January, the company’s US sales tanked by 6.7% YoY to 23,074 units, which were also lower than its February 2019 sales. In the last six months, VLKAY has reported YoY sales declines in four months.
In 2018, a solid 119% YoY sales rise in Volkswagen’s Tiguan was one of the key drivers for positive growth in its total US sales. However, in the first two months of 2019, Tiguan has gone down by 16.0% YoY.
In 2018, Volkswagen delivered about 10.8 million vehicles units worldwide to become one of the largest global automakers. However, its 2018 US sales volumes were much lower than the sales volumes of other mainstream foreign automakers such as FCAU, TM, and HMC. At the beginning of 2016, the company’s US sales suffered after the US Department of Justice (or DOJ) slapped a civil lawsuit on the company for violating the Clean Air Act. This legal battle with the DOJ not only badly hurt VLKAY’s US sales, but it also fueled investors’ concerns about the reliability of large auto makers.