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VW Takes Global Sales Lead From Toyota (Again)

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It’s no secret that the past few months have been pretty rough for Volkswagen, with the Dieselgate scandal rocking the company. While the press focuses on the fallout from that incident, the automaker has been making sales gains around the world. Today it was announced that VW has taken the crown of world’s largest automaker from Toyota for the second time, proving that the brand’s superior engineering and great value are still winning over global customers.

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VW was also successful in taking the crown from Toyota in the second quarter of 2015, before the diesel scandal was uncovered. The Toyota brand and its fans are quick to point out that much of Toyota’s sales slump is due to recent earthquakes and natural disasters in Japan disrupting the automaker’s supply chain and slowing down car production. Toyota’s deliveries slipped by 2.3% in the first quarter, according to the automaker, and management in attendance at the Beijing Auto Show say that the company is working quickly to restore normal production volumes.

On the other side, Volkswagen’s deliveries have actually grown by .8% in the first quarter. Most of this growth is occurring in China and Western Europe, where VW saw deliveries grow by 6.4% and 3.5%, respectively. These numbers show that VW might have to work hard to win back customer’s confidence after the clean diesel scandal, but many customers still trust VW’s superior engineering and the quality of its vehicles. If this level of performance continues, it’s possible that Toyota’s four year streak as the world’s global sales leader could finally come to an end.

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General Motors, the other automaker in the running for the top sales position, blamed their dropping sales on a weak auto market in China and South America. Considering that VW saw a big boost in sales in China in the same period, maybe the company should start looking for another cause to blame.

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News Source: Bloomberg