Recession Takes a Toll on Volkswagen in 2009

A look into Volkswagen's 2009 numbers show thattook an even bigger hit by falling an astonishing 80.8%.
their sales numbers might be increasing, but they areIn North America, VW's market share recognized a
struggling to stay afloat financially. Of course, theloss of 20.7% while in its home country, Germany, its
worldwide recession could be partly to blame for thismarket share increased 18.4%.
abysmal yearly performance, but that argument onlyUnfortunately for Volkswagen, though, the countries of
goes so far. So, let's see what the numbers have toGermany and China were the only two locales where
say about Volkswagen's relevancy in the automobilesales saw an increase. Volkswagen is able to tout that
industry.their market share worldwide was able to increase
For 2009, Volkswagen recognized a 0.6% increase infrom 10.3% in 2008 to 11.3% in 2009.
total sales from fiscal year 2008. While increasingVolkswagen shareholders saw their shares of
sales, they were also able to slightly reduce theVolkswagen go from being worth 11.92 per share in
number of vehicles produced, which led to layoffs of a2008 to 2.38 in 2009. This obviously makes it difficult to
1,500 employees. These statistics might lead you tobe overly optimistic about Volkswagen's people, as this
believe that VW is moving forward in a market inkind of drop in share price is sure to send investors
which other manufacturers are struggling to getrunning to better investments.
through. However, the actual financial data paints anWhile there are some positive things that VW can
entirely different picture.take away from their fiscal year 2009, there are many
As compared to 2008, Volkswagen found their 2009other areas of their business that must be addressed
sales revenue decreasing by 7.6% while their operatingquickly before too much damage in both their domestic
profit fell a mind-bending 70.7%. Their profit after taxesas well as their international markets is done.