Volkswagen Group Sales Down 23% In Jan-March
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Volkswagen Group on Friday said sales of its cars dropped by 23% on the year to 2 million cars in the January to March period.
In March alone, deliveries were down 37.6% overall at 623,000 vehicles, the figures showed, reflecting the coronavirus crisis which triggered plant closures and falls in sales as consumers were tied up at home in lockdown measures across the world.
German carmakers to resume production as lockdowns ease
German carmakers including Volkswagen and Mercedes-Benz will restart production at some German factories next week. It’s part of a partial reopening of business and shops over the next few weeks.
More specifically, March sales were down 44.6% year-on-year in western Europe, down 23.1% in central and eastern Europe, down 42% in North America, and down 35% in China, the company said.
Experts believe that declines in April sales could be steeper as the full impact of the lockdowns works its way through the system.
Volkswagen on Thursday withdrew its outlook for 2020 due to the uncertainty related to the virus outbreak which caused operating profit to drop 81% in the first quarter.
Questions & Answers
Q.What caused the significant drop in Volkswagen Group's sales during the January to March period?
What caused the significant drop in Volkswagen Group's sales during the January to March period?
Sales dropped because of the coronavirus crisis, which led to plant closures and reduced sales as consumers were under lockdown measures globally.
Q.Which regions experienced the largest decline in Volkswagen Group sales during March?
Which regions experienced the largest decline in Volkswagen Group sales during March?
Western Europe saw the largest decline with sales down 44.6% year-on-year, followed by North America with a 42% decrease.
Q.When do German carmakers, including Volkswagen, plan to restart production at some of their factories?
When do German carmakers, including Volkswagen, plan to restart production at some of their factories?
German carmakers, including Volkswagen, are set to restart production at some German factories next week as part of a partial reopening of businesses.
Q.Why did Volkswagen withdraw its outlook for 2020 and what impact did the virus have on its first-quarter profit?
Why did Volkswagen withdraw its outlook for 2020 and what impact did the virus have on its first-quarter profit?
Volkswagen withdrew its 2020 outlook due to uncertainty from the virus outbreak. Operating profit dropped by 81% in the first quarter.
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