VW’s U.S. sales have declined for several years in a row. This year has been no different. Based on new information, dealers cannot get VWs off their lots, a sure sign of lack of demand.
According to research firm Edmunds, VW’s “days to turn”, the average number of days a manufacturer’s vehicles sit on the dealer’s lot, have been above the industry average for eleven of the last 12 months. In April, VW’s were slightly ahead of the average, at 66 compared to the average 0f 68 days. By comparison, the car manufacturer with the best days to turn number was Subaru at 25 days. Near the bottom of the list, VW was joined by Volvo at 78. The iconic brand, now owned by China manufacturer Geely. So far, its American turnaround has been a failure.
At the best end of the days to turn, just below Subaru are Toyota (NYSE: TM) luxury flagship Lexus 41 days to turn, and Mercedes at 46.
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While days to turn do not exactly match sales figures and market share, in some cars the figures are close. VW’s sales were down again in April, by 2.7% to 30,009. VW’s market share was 2.1%. Market leader GM’s (NYSE: GM) share was 18.5%.
VW’s long term goal has been to match Toyota and GM in global unit sales. Its position in Europe and China have helped that. VW holds an extraordinary 24% market share in Europe. In China, it is among the market leaders. China has been the world’s largest car market for over five years, since it passed the U.S. during the Great Recession.
Industry analysts believe VW will continue to trail its two major rivals in global market share, since it cannot make extraordinary progress in the U.S. There is no evidence VW can do that. As a matter of fact, VW is actually losing ground.
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