Volkswagen Hits Record in Car Sales and Releases new Jetta

After the emission scandals that hit its reputation, Volkswagen seeks for redemption as it reported record car sales and unveiled a revamped version of the all-new Jetta sedan.

“We finished 2017 with the best performance ever for Volkswagen,” said Herbert Diess, chairman of the board management of the Volkswagen passenger cars brand.

Global sales increased 4.2% to 6.2 million cars, with sales in China boosting 5.9% to 3.2 million cars, more than half the total sold globally. This was boosted by an expanding line-up of sport utility vehicles, such as the Atlas and Teramont models.

Further, VW remained optimistic about growing its volume this year. "Based on economic forecasts and our plans for new models, there is no reason to expect that 2018 should turn worse than 2017,” VW brand sales Chief Juergen Stackman said on Sunday at the Detroit auto show.

Though all these countries are smaller markets for the automaker than China, strong performances for other counties in terms of percentages included Russia, Brazil, and the United States as it was up 5.2% to 339,700 cars.

“We are really starting to see the efforts of our work reflected in our sales,” said Hinrich Woebcken, new head of the VW brand in North America.

However, the German manufacturer’s sales fell 0.1% in Germany, due in part to a 4.7% drop in Germany.

Sales of the VW brand, which is pursuing a turnaround plan to recover profits, may continue to outpace rivals, according to industry forecaster IHS Markit.

IHS data indicated that deliveries of passenger cars and light commercial vehicles could increase 14.6% to 7.75 million units by 2025 from 6.76 million last year. That compares with growth of 11.6% to 9.65 million at Toyota, while 3.7% to 5.84 million at Ford.

The All-new Jetta

VW launched the Jetta compact car, its biggest seller in America, at the Detroit auto show on Sunday as it looks to revive sales in the second largest auto market.

“We have given the regions much more responsibility and we are improving operations," said Diess, adding that the new Jetta would be $100 cheaper than the outgoing model, which offers additional driver-assistance functions and LED lights as standard.

The new Jetta comes with a lowered roofline and an 8-speed automatic transmission, which was tailored to US design and fuel-economy needs and drew more input from North American engineers than its predecessor, according to sources.

“At long last, we want to get it right,” said Diess, after unveiling the $18,545 Jetta. “Last year, we’ve already significantly cut our losses in North America," he said.

Volkswagen shares rose 0.07% to 179.72 euros during the late-morning trading session.

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