Volkswagen: No company dodges the global auto recession
American companies like General Motors (GM) got hit the earliest and hardest by the downturn in car sales, perhaps because the American market turned south more quickly than others. Toyota (TM) started to bleed as it faced falling demand in it home market, the U.S. and Europe.
The largest car company in the EU, Volkwagen, reported poor numbers for the last quarter. Since it has almost no market share in America, its problems are largely due to trouble in Europe and Asia.
According toMarketWatch, VW's first-quarter net profit fell 73.8 percent to 243 million euros ($314 million).
Perhaps because VW is not a player in the one market where it would like to have a major presence, the U.S., it will actually do better than the global car giants that count on America for a big part of their volume. VW says its unit sales will only drop by about 10 percent. For the time being, VW is lucky that its dreams about being a player in North America have not come true.
Douglas A. McIntyre is an editor at 24/7 Wall St.