German automakers aim for higher us market share

German automakers aim for higher us market share

German carmakers don’t want to let growing political risks and a slightly weaker sales trend spoil their mood in the important US market.

But customers could face price hikes if talks about the future of the nafta free trade agreement do not succeed. According to the german association of the automotive industry (VDA), VW, BMW, daimler and co. Will gain market share once again this year – although the overall auto business in the united states is expected to slow down somewhat.

"After seven years of strong growth in the u.S. Auto market through 2016, we should expect a slight slowdown in 2018 – as we did in 2017," said VDA president matthias wissmann on monday at the start of the first rough auto show of the year in detroit. But german suppliers were already able to increase their share from 7.6 to 7.9 percent last year. This puts the company in third place behind the US and its japanese rivals, and ahead of south korea.

"As the german manufacturers continue their model offensive, I expect that we will be able to further increase our market share in 2018," said the VDA boss. Total sales in 2017 were up by around one percent to 1.35 million new vehicles. With e-cars still being sold sparingly, the number of e-cars sold in the USA has risen to 16 percent.

The economic outlook remains good, said wissmann. Overall, however, the U.S. Auto industry was allowed to cool off a little. American industry experts also assume this. In 2018, a total of just under 17 million cars are expected to be sold in the USA, estimates the VDA. 17.1 million in the previous year.

With a view to the possible end of the nafta free trade zone between the u.S., mexico and canada, which allows carmakers to trade favorably with the u.S., wissmann warned: "let’s not break this chain."Anything else would be an "own goal" from the point of view of the USA. Higher customs duties were allowed to make cars more expensive for customers.

VW is counting on a recovery of its long-difficult US business. "This is where we are laying the foundation to position volkswagen as a relevant volume manufacturer," said brand chief herbert diess in detroit. Market shares have so far been rather low, but recently increased slightly to just under 2 percent. 3.3 billion dollars (2.8 billion euros) are to be invested in north america by 2020, by which time the current business should also be profitable again, according to the company. In 2017, the losses had already been "significantly reduced".

The new jetta is expected to play a central role in the race to catch up – more than 17.5 million have been built worldwide since 1979 and it is the most popular VW model in the U.S. Then the suvs will start up again.

Last year, the brand based around the jetta, passat and tiguan increased sales in the united states by 5.2 percent to 340.000 cars increased. In december, however, the number of deliveries fell by 18.7 percent to around 30 percent.300 cars. Worldwide, the core brand delivered more cars in 2017 than ever before: 6.23 million units were handed over to customers – 4.2 percent more than in the previous year. The company is also working "hard" to make amends for the emissions scandal, this company promised. In the USA, the scandal involving millions of manipulated diesel engines was uncovered in september 2015.

The VW passenger car brand continues to benefit from strong business in china, where 3.18 million cars were delivered last year (plus 5.9 percent). Worse performance in germany. In december, VW was able to increase sales by 8.4 percent to 42,000 cars.000 cars increase. For the year as a whole, however, there was a decline of 4.7 percent to 531 million units.600.

BMW wants to achieve a turnaround on the US market this year. "We expect a slight increase in sales," finance chief nicolas peter said in detroit. An increase of up to 5 percent is the target. The last time the group reported an increase in the U.S. Was in 2015. New models such as the X2 and the X4 are expected to provide momentum; production of the X3 started in november. So far, these cars are built at the U.S. Plant in spartanburg, which is reaching capacity limits and cannot produce enough of the popular suvs for the world market.

Daimler boss dieter zetsche expects global car sales to continue on a positive course. He assumes that mercedes-benz will be able to continue its current development. In 2017, daimler and its mercedes-benz and smart brands sold 2.42 million cars globally, almost 9 percent more than in the previous year.

Despite slow progress in reducing emissions of the climate gas carbon dioxide, stuttgart wants to continue to meet eu targets. "We want to comply with the regulations in 2021," said zetsche in detroit. However, he could not rule out the possibility of not achieving the goals. In this case, billion-dollar fines were threatened.

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