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April 4, 2008
So, what's up with Volkswagen and Hyundai?
With every other auto maker reporting losses in U.S. sales in March, VW comes in with a cheery 7.8 percent gain over March of last year, according to Autodata which includes sales of subsidiaries - in VW's case, those of Audi and Bentley.
And Hyundai reported a 1.9 percent gain, so it should also take a bow. Ferrari and Maserati both reported gains, but supercars hardly count as their totals are so low. Ferrari, for example, sold 163 cars in March compared with VW's 27,832 and General Motors' 280,713.
Indeed, when it comes to the big producers, the losses were nasty: GM sales were down 18.7 percent, Ford's were down 14 percent, Toyota's were off 10.3 percent, Chrysler's were down 19.4 percent, Honda's were off 3.2 percent and Nissan's were off 3.8 percent.
So what accounts for VW's success? The company said little beyond the ract that sales of its Jetta, which it described as its top sales performer, were up nearly 20 percent with Passat sales up 13 percent and New Beetle convertible sales up 14.1 percent.
Unfortunately, no relief appears to be in sight and with nearly 75 percent of Americans now believing the economy is in recession, according to a recent CNN/Opinion Research poll, folks are not going to be in a buying mood, especially for big ticket items. That, of course, feeds on itself as so many producers are dependent on the auto - and housing - industries.
So this is a time for manufacturers and dealers to gird their loins and ride it out - like many other businesses.
It would just help to know what pixie dust VW and Hyundai are sprinkling on their cars.
- Peter C.T. Elsworth
Posted by Peter C. T. Elsworth 
at 10:43 AM to commentary
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