Volkswagen expects 2010 to be a tough year despite signs of improvement

Even as there are signs of the car market improving, Volkswagen AG still anticipates that 2010 would be a tough year. However, VW is optimistic that it would fare better than the market.

In a statement released last Friday, group sales head Christian Klingler acknowledged the “clear signs of revival” around the world. VW, Europe’s biggest automaker, said that for the first quarter of the year, the demand for its core VW brand increased by 27%. For that period, group vehicle sales rose by 24.6%. Meanwhile, the European car market is showing strong figures. Last March, new car registrations in the European Union increased by 10.8%, that month’s biggest growth in years. This can be attributed to the extra working day and the revived demand in the four biggest markets outside of Germany. Industry group ACEA found that new registrations increased to 1.64 million vehicles, a dramatic increase from the absolute figure from March 2008. Nonetheless, these figures have not caused volume carmakers such as VW to forget that the pressure is still on for them to rise beyond the challenges.