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Is Volkswagen Struggling to Keep Up?

Volkswagen Struggling

Volkswagen is the largest selling European brand in the United States. The car company, based in Wolfsburg, ower Saxony, Germany, was number three in overall global sales for 2013, following General Motors at number two and Toyota Motor Corp. at number one. The company’s year-to-date (YTD) sales between April 2014 and 2013 are down 7.7%, according to sales data reported by Desrosiers of Canada automotive reports.

Recent economic losses for Volkswagen places it passenger car and light truck sales in Canada at number 10 YTD, in terms of market share. The company’s market share as of April 30, 2014 fell nearly 11% from same YTD sales in 2013. Although the company’s current market share lags Kia Motors Corporation, the number nine car company by 21%, Volkswagen is a strong brand to consider for your next new car purchase. Here is a discussion of the ambitious goals Volkswagen has set for itself and why you should consider the purchase of a Volkswagen car.

Volkswagen’s Goals for Canadian Sales

Annual vehicle sales in Canada for Volkswagen have been at 3% to 3.5%. The company has set an aggressive goal to capture 5% of the country’s new car market on an annual basis. Reaching this goal is part of the company’s overall global goal of selling 10 million cars in a year by the year 2018. This goal may be met as soon as this year as analysts project Volkswagen’s sales worldwide at 10.32 million units by year’s end. Both Toyota and General Motors are on pace to exceed the 10 million car sales mark, selling respectively 9.98 and 9.7 million units in 2013.

The company plans to sell nearly 85,000 units in Canada on an annual bases, which more than doubles the company’s sales output for the country. Selling more cars will help to increase Volkswagen’s market share and make it more competitive as a Canadian car seller.

Reasons for Buying Volkswagen Vehicles

Volkswagen vehicles selling in Canada are priced to be competitive with the top selling cars in the country. Models such as the Passat, Touareg, Tiguan and Jetta are popular cars that are comparable to brands offered by both GM and Toyota. The Passat, as an example compares favorably to the Honda Accord, which lists at around $23,990 CAD versus $23,975 for the Passat. Models available for you to drive start as low as $14,990 CAD for the Jetta Sedan up to $50,975 CAD. You have the choice between hybrid and standard engine types of between 1.8 and 3.6 litres in capacity and can drive as high as 12.3 km/L in city driving and 10.9 km/L in highway mileage.

Future Prospects for Volkswagen in Canada

Currently the top five spots for new car sales in Canada YTD (in terms of market share) are in order: Chrysler/Fiat, Ford, General Motors, Toyota and Honda, which is tied with Hyundai. Combined, these six car makers comprise just over 70% of the market share for new vehicle sales in Canada YTD, selling 180,717 units in April 2014 and 539,109 units combined since January 1st.

A new vehicle production plant located in Chattanooga, Tennessee in the U.S. is key to the company’s plan to meet its sales goals. The plant helps the company reduce the price on certain popular models, such as the Passat, by as much as $7,610 CAD, because of the close proximity of the production facility. The company is making the right moves to become a more dominant player in Canada and one to consider for your new car purchase.

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