The surprise loser in auto sales in both Marsh and in the first quarter is Volkswagen. Its sales rose only 3.1% in March to 30,7704 vehicles. On a quarterly basis sales were up only 4% to 98,178. Market share continues to hover around 2.6%, a level at which the world’s number three car maker cannot demonstrate has the ability to break into the US market which sits second behind in China in unit sales.

One of VW’s challenges is that the recession in its home market of Europe continues to worsen. That offers VW very little chance to increase unit sales within the nations which make up the EU. VW has done very well in China where competes with General Motors for the premier spot in terms of sales. However, the Chinese market is no longer growing rapidly. Tax incentives which helped sales several years ago have expired. There is also an air pollution problem in the large cities may cause the central government of the People’s Republic to throttle back the number of cars that are allowed to be driven into urban areas.

That leaves the United States as the only large market in which VW can garner large unit sales. One of VW’s largest challenges is that it does not have a full line of cars and SUVs, crossovers and sport-utility vehicles In other words, it didn’t create a large lineup which would allow it to have an appeal to a broad range of customers. It cannot hope to gain on the market leaders back.

VW management should punish itself was that the Fiat bought Chrysler and that it never contended to do so

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