VW Becomes World’s Biggest Car Builder Despite Emission Scandal

Volkswagen has become the world’s biggest car manufacturer, overtaking Toyota in the number of new vehicles sold in 2016 despite the damage it suffered in the diesel emissions scandal.

Toyota had been the biggest seller for the past four years but its 2016 sales total of just under 10.2m vehicles, announced on Monday, fell short of the more than 10.3m cars sold by VW.

General Motors is reporting its 2016 sales next week, but industry analysts said it had no chance of overtaking VW. GM was third behind VW last year and held the top spot in 2011, when Toyota’s production was disrupted by the Japanese earthquake and tsunami.

It marks the first time that the German manufacturer has become the global bestseller, a record it has achieved despite having being beset by scandal for rigging emissions tests for its diesel vehicles. Riding out prosecutions, fines and vehicle recalls in the US, the VW group – which includes the Audi, Porsche and Skoda brands – recorded an overall 3.8% rise from 2015.

A major contribution was booming sales growth of 12% in a year in China, where VW sells few diesel vehicles. But the figures suggest that VW’s brand has not been seriously damaged in the eyes of consumers.

via The Guardian

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza