AMEDA unveils modernisation steps for African, ME depositories    US Military Official Discusses Gaza Aid Challenges: Why Airdrops Aren't Enough    US Embassy in Cairo announces Egyptian-American musical fusion tour    ExxonMobil's Nigerian asset sale nears approval    Chubb prepares $350M payout for state of Maryland over bridge collapse    Argentina's GDP to contract by 3.3% in '24, grow 2.7% in '25: OECD    Turkey's GDP growth to decelerate in next 2 years – OECD    $17.7bn drop in banking sector's net foreign assets deficit during March 2024: CBE    EU pledges €7.4bn to back Egypt's green economy initiatives    Egypt, France emphasize ceasefire in Gaza, two-state solution    Norway's Scatec explores 5 new renewable energy projects in Egypt    Microsoft plans to build data centre in Thailand    Japanese Ambassador presents Certificate of Appreciation to renowned Opera singer Reda El-Wakil    Health Minister, Johnson & Johnson explore collaborative opportunities at Qatar Goals 2024    WFP, EU collaborate to empower refugees, host communities in Egypt    Al-Sisi, Emir of Kuwait discuss bilateral ties, Gaza takes centre stage    Sweilam highlights Egypt's water needs, cooperation efforts during Baghdad Conference    AstraZeneca, Ministry of Health launch early detection and treatment campaign against liver cancer    AstraZeneca injects $50m in Egypt over four years    Egypt, AstraZeneca sign liver cancer MoU    Swiss freeze on Russian assets dwindles to $6.36b in '23    Amir Karara reflects on 'Beit Al-Rifai' success, aspires for future collaborations    Climate change risks 70% of global workforce – ILO    Prime Minister Madbouly reviews cooperation with South Sudan    Egypt retains top spot in CFA's MENA Research Challenge    Egyptian public, private sectors off on Apr 25 marking Sinai Liberation    Debt swaps could unlock $100b for climate action    President Al-Sisi embarks on new term with pledge for prosperity, democratic evolution    Amal Al Ghad Magazine congratulates President Sisi on new office term    Egyptian, Japanese Judo communities celebrate new coach at Tokyo's Embassy in Cairo    Uppingham Cairo and Rafa Nadal Academy Unite to Elevate Sports Education in Egypt with the Introduction of the "Rafa Nadal Tennis Program"    Financial literacy becomes extremely important – EGX official    Euro area annual inflation up to 2.9% – Eurostat    BYD، Brazil's Sigma Lithium JV likely    UNESCO celebrates World Arabic Language Day    Motaz Azaiza mural in Manchester tribute to Palestinian journalists    Russia says it's in sync with US, China, Pakistan on Taliban    It's a bit frustrating to draw at home: Real Madrid keeper after Villarreal game    Shoukry reviews with Guterres Egypt's efforts to achieve SDGs, promote human rights    Sudan says countries must cooperate on vaccines    Johnson & Johnson: Second shot boosts antibodies and protection against COVID-19    Egypt to tax bloggers, YouTubers    Egypt's FM asserts importance of stability in Libya, holding elections as scheduled    We mustn't lose touch: Muller after Bayern win in Bundesliga    Egypt records 36 new deaths from Covid-19, highest since mid June    Egypt sells $3 bln US-dollar dominated eurobonds    Gamal Hanafy's ceramic exhibition at Gezira Arts Centre is a must go    Italian Institute Director Davide Scalmani presents activities of the Cairo Institute for ITALIANA.IT platform    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



Volkswagen - a tumbling giant?
Published in Daily News Egypt on 21 - 09 - 2015

The current crisis over the systematic cheating on US emissions tests is weighing down on the reputation of the German auto maker Volkswagen. Here are some facts and figures on the Wolfsburg-based company.
Size
With 600,000 employees and annual revenues of 200 billion euros ($224 billion), Volkswagen is one of the flagships of German industry. In 2014, Volkswagen's 12 brands sold 10.2 million vehicles.
This summer Volkswagen CEO Martin Winterkorn reached his long-time goal to pass Japanese rival Toyota as the world's biggest car manufacturer in terms of global sales. Until June 2015 Volkswagen had sold 5.04 million vehicles – 20,000 more than Toyota.
Key markets
Europe and the Asia Pacific region are by far the most important markets, each accounting for 40 percent of the company's sales. The North American market only accounts for less than 9 percent, South America contributes almost 8 percent to Volkswagen sales.
With a 40-percent market share in China Volkswagen is the leader of the pack in the world's biggest vehicle market. The People's Republic is the most important market for VW. In China Volkswagen sells more than every third vehicle and makes a big chunk of its global profits. However sales have been declining by 5.7 percent between January and August.
The US market
In the United States Volkswagen is just a niche player. Even manufacturing cars in Chattanooga, Tennessee has done little to change that. The US version of the Passat is not selling well and there is no big VW SUV model available. Demand for small pick-up trucks could not be met for a long time. Because diesel engines are widely used in this market segment, a decline in consumers' confidence could hurt VW even more.
In 2014 Volkswagen sold just under 600,000 vehicles in the US. The company wants to boost sales to 800,000 vehicles until 2018. VW's best-selling car in the US has been the Jetta sedan. Diesel models of the VW and Audi brands have been affected by the emission scam – their sale has been stopped in the US.
Diesel market
In Western Europe cars with diesel engines are selling extremely well. In Spain, France and Belgium they have a market share of more than 60 percent, in Germany almost 50 percent.
BMW, Audi and Mercedes are the biggest sellers of diesel cars in Germany. More than 50 per cent of Volkswagen cars in Germany use diesel.
When it comes to diesel engines the US market is lagging behind. In 2014 only little more than 3 percent of cars in the US were powered by diesel engines. Some industry pundits predict this market share could climb to 10 or even 15 percent in the next ten years.
Company structure
Until today, Volkswagen has been dominated by the Piëch and Porsche families. To make things even more complicated, the so-called "VW law" secures a blocking minority of votes in the company's board for the federal state of Lower Saxony – though it only controls 20 percent of voting rights.
The EU Commission has repeatedly challenged the "VW law," because it considers it to run afoul of the EU's regulations on the free movement of capital.


Clic here to read the story from its source.