Daily Management Review

Volkswagen sales in China collapse in January by 11%


German automaker Volkswagen AG announced a 11% decline in sales in China in January amid an outbreak of pneumonia caused by the Covid-19 coronavirus.

Global car manufacturers have major operations in China, and analysts warn that the actual closure of a number of cities in China to limit the spread of coronavirus will seriously affect both sales and profits of the sector representatives in the first quarter of 2020.

Coronavirus has become a new problem for car manufacturers, who are already in a difficult situation, given the weakening global demand, the high cost of developing electric vehicles, as well as stricter emission requirements, especially in Europe.

The closure of Chinese enterprises has brought problems to those manufacturers in various industries who purchase at least part of the components in China.

Volkswagen is the largest foreign automaker in China, where it sells cars of the brands Volkswagen itself, as well as Audi, Porsche and Skoda. Last month, the automaker sold 343.4 thousand cars in China, compared with 387.3 thousand cars a year earlier.

In December - even before Chinese enterprises began to close due to coronavirus, Volkswagen sales in this country grew by 17%. In 2019, Volkswagen sold 4.2 million cars in China, up 0.6% from a year earlier.

Volkswagen operates approximately 20 enterprises in China, which produce more than 4 million cars a year. The closure of enterprises means that the company will produce several hundred thousand less cars in the first quarter of this year, and at the moment it is not clear when the plants will be able to return to normal operation.

Volkswagen global sales in January fell by 5.2%, to 836.8 thousand cars. Car sales in North America grew by about 5%.

Volkswagen continues to struggle with the consequences of the “diesel” scandal that erupted in 2015. The company said on Friday that negotiations to settle the first major class action lawsuit filed by consumers in Germany had failed.

source: bloomberg.com

Science & Technology

UK trials new breathing aid developed by Mercedes Formula One

Uber sues Los Angeles authorities over user data collection

Google Introduces New Coronavirus Website

WHO Warns That The Youth Are ‘Not Invincible' To The Novel Coronavirus

Chinese software company learns to recognize 95% of masked faces

World's largest retailer to use 5G for medical services

SpaceX Receives Approval To Create Research & Manufacturing Facility In Los Angeles

JPMorgan: Transition to e-money will be based on blockchain

Tesla In Advance Talks With CATL For Using Lithium Batteries

Financial giants and US government turn to quantum computers

World Politics

World & Politics

Aerospace Consortium To Build Ten Thousand Ventilator In Britain

US Ambassador To UK Holds China Responsible For Global Spread Of Coronavirus

China to lift quarantine in Wuhan on April 8

Canada, Australia refuse to send athletes to Olympics 2020

Plans For A Possible Delay Of Olympics Being Formulated By Tokyo Organizers: Reuters

Maduro says Venezuela will receive UN assistance to fight coronavirus

2 Million Masks For Coronavirus Crisis In Europe Donated By Jack Ma

National Emergency Declared In The US By Donald Trump Over Coronavirus