Sales of German automaker Volkswagen AG were on the rocks after the company faced an emissions-cheating scandal that pared hefty amounts to its revenues in 2016. However, solid demand in China and Eastern Europe made up for the losses in other major selling regions.
Volkswagen shares made solid gains on Monday trade following announcements of significant gains in the sales of its VW-brand car in December. This was also after a senior executive of the company expressed optimism on the resolution of the criminal investigation in the US soon.
VW brand sales increased 2.8 percent globally with 5.9 million vehicles, propped up by 14 percent growth in new car sales in the Chinese region and around 7 percent in Eastern and Central Europe.
Volkswagen shares soared 3.8% at $151.99 at 11:35 a.m. GMT.
In China, VW brand new car sales peaked 2.9 million, reestablishing the country’s top spot as Volkswagen’s largest growth source. However, sales nosedived to 9 percent in Australia and VW sales were prohibited in South Korea what with the diesel crisis it faces.
Other primary markets saw the slump in VW brand’s new car sales.
The diesel scandal that subjected the company to be sued and probed in 2016 had hit the sales growth in the US and Canada.
Reparation of $17.5 billion was paid by the company to the US consumers and appears close to settling a criminal investigation with the Justice Department that could add up to $3 billion to the bill.
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