Volkswagen brand announces record deliveries for 2006

The Volkswagen Passenger Cars brand sold more vehicles last year than ever before in the history of the company.

A total of 3.395 million vehicles were delivered to customers worldwide in 2006, representing a 10 per cent increase on the previous year. ‘Growth was noticeably stronger for the Volkswagen brand than for the world market in 2006. Key markets recorded quite significant growth in some cases. With these record figures, Volkswagen has strengthened its position as one of world's largest automakers,’ Dr. Wolfgang Bernhard, chairman of the Volkswagen brand board of management, commented in Wolfsburg.

He added that growth had been particularly strong for Volkswagen in Germany and Europe. ‘Although Germany remains a hard-fought market characterised by high discounts from competitors, we have nevertheless seen a noticeable rise in sales and have increased our market share from 18.6 to 19.9 per cent.’ He emphasised that Volkswagen had not bought its way to growth. ‘We have combined our attractive models with product offerings from Volkswagen Bank and Volkswagen Service which bring genuine added value. These packages have convinced our customers.’ He said Volkswagen would be continuing with this approach this year. ‘We focus on customer benefit, not on discounts.’ As a result of the market strategy in Germany, Volkswagen models took pole position in six vehicle registration segments, in some cases with a significant lead.

Developments in Western Europe were also very positive. ‘We have not only defended our market leadership in Europe, but have further extended our lead,’ Bernhard commented. In 2006, Volkswagen delivered 1.525 million vehicles in Western Europe (including Germany), 5.6 per cent more than in 2005. The market share rose from 10.3 to 11.0 per cent. Developments in Eastern Europe were also positive for Volkswagen. Growth in deliveries to customers was particularly strong in Russia, where 19,200 Volkswagen brand vehicles were sold, 59.6 per cent up on the figure for 2005.

In China (including Hong Kong), Volkswagen remained the favourite passenger car brand, selling 625,000 vehicles, a year-on-year increase of 22.3 per cent. ‘We made the turnaround in China in 2006,’ Bernhard said. In the Asia/Pacific region (excluding China), deliveries rose by 11.5 per cent to 88,000 units.

In he US market, which remains fiercely competitive, Volkswagen increased deliveries to customers by 4.9 per cent to 235,000 vehicles.

2006 sales in South America and South Africa were also significantly higher thant the previous year. 571,000 vehicles were delivered, representing a year-on-year increase of 15.0 per cent. In Brazil in particular, Volkswagen recorded a strong 15.2 per cent increase, with sales rising to 373,000 units.

For 2007, Dr. Michael Kern, the Volkswagen brand board member for sales and marketing, does not expect any noticeable easing of the competitive situation on the major automobile markets: ‘Stagnation or only slight growth can be expected for both Germany and Western Europe. It also looks as if the discount battles in the USA are set to continue.’ He added that Volkswagen was, however, assuming continued strong growth on the Chinese market. ‘We will be doing our utmost to benefit as extensively as possible from this trend.’

Dynamic development in Russia would also continue. He added that Volkswagen expected additional positive momentum when production at the new plant in Kaluga starts in the second half of the year. Volkswagen would also begin selling locally-built vehicles in India as early as mid-2007 and anticipated proactive involvement in dynamic market development there, too.

Bernhard emphasised that Volkswagen would be further enhancing quality, customer satisfaction and service orientation in 2007. ‘We already made significant progress in customer satisfaction last year with improved vehicle quality and innovative service concepts, and will be continuing along this path with uncompromising determination.’

In the UK, the Volkswagen Passenger Cars brand delivered a record 189,959 vehicles to customers in 2006.