Volkswagen CEO: while Europe and the U.S. will be deeply in recession, China is the light of hope for volkswagen

A sudden outbreak, so that many car companies “overnight back to the start”, even the powerful Volkswagen, failed to do their own thing. May 14 (UPI) — China will be the light of hope, after Europe and the United States enter recession, the Group’s chief executive, Herbert Diess, said recently, according to German media reports.

Diess published a keynote article in LinkedIn, explaining his analysis of the late development of the mass epidemic. He praised China as “the success engine of the Volkswagen Group, and now even more important than ever!” “

“At a time when Europe and the United States are facing a severe recession, China’s performance in April was stunning,” Diess wrote. Ten weeks after the outbreak, our sales in China exceeded the levels of the same period last year. Vw’s brand share in China edged up 1.7 per cent to 21 per cent.” Audi, Bentley, Porsche, Volkswagen and Jetta have performed well in China. The Jetta brand sold 135,000 vehicles in April, and has a 1% share of the brand.

“Six of China’s ten car buyers are first-time buyers. They drove the growth of mass sales. Because many Chinese want to realize the dream of having a car and avoid being infected when takingĀ  public transportation,” Diess said.

In early April, Volkswagen Group issued an official announcement that the continuing pandemic of the new coronavirus had had a major impact on the group’s business, with a near-stagnation in the auto sales network, a sharp decline in customer demand and a cut-off in the parts supply chain. As a result, the company will withdraw its previous outlook for 2020.

According to statistics, VW expects sales in the first quarter of 2020 to be 50 billion euros (about 422.873 billion yuan), down 8 percent from 60 billion euros (about 461.316 billion yuan) in the same period last year, and operating profit of 900 million euros (about 6.92 billion yuan), down 76.9 percent from 3.9 billion euros (about 29.986 billion yuan) in the same period last year.

VW said the first-quarter results in 2020 were burdened by the impact of raw material prices and financial markets, with a sales margin of about 1.6 percent. The net cash flow of automobiles is negative 2.5 billion euros (about 19.222 billion yuan), and the pressure to “turn positive” is very great.

At present, the production capacity of the Volkswagen brand in China has been restored to the level of 70%-80% before the outbreak, its 2,000 dealers have also resumed business, passenger traffic at the end of March also returned to the level of the same period last year.

Volkswagen CEO: Europe and the U.S. will be deeply in recession China is the light of hope for volkswagen