Toyota Retakes Global Sales Lead as VW Deals With Scandal

26 Oct 2015 | Author: | No comments yet »

Toyota roars ahead as VW deals with scandal.

WPP Plc, the world’s largest ad agency, posted a 3.3 percent increase in third-quarter sales excluding the impact of acquisitions and currency fluctuations as growth from clients in North America, Latin America, Africa and the Middle East was tempered by “softening” in the U.K. Tokyo – Toyota regained its global sales lead over Volkswagen as its German competitor braces for consumer blowback from a widening emissions-cheating scandal. Toyota said on Monday it sold 7.49 million vehicles this year through September, topping the 7.43 million that Volkswagen reported earlier this month. The results include less than two weeks of sales reporting by Volkswagen after its admission to rigging diesel engines with software that deceived regulators about pollution levels. U.S. peers Omnicom Group Inc. and Interpublic Group of Companies Inc. posted organic sales growth of 6.1 percent and 7.1 percent respectively for last quarter.

While the German automaker led Toyota in global sales through the first six months, it’s now readying repairs to 11 million vehicles worldwide and has stopped sales of diesel models in several markets as it brings engines into compliance. The company is also facing a slowdown in demand in China, its largest market, with its namesake brand declining 7.4 percent in the first nine months. “Toyota will be the No. 1 for this year,” Koji Endo, an auto analyst at Advanced Research Japan, said by phone. “VW may be facing sales difficulties due to the scandal towards next year in Europe and the US, and I don’t see the Chinese market coming back anytime soon.” Volkswagen’s emissions scandal led to the resignation of Chief Executive Officer Martin Winterkorn, who had set a goal to vault the company past Toyota and General Motors to become the world leader by global sales. Toyota planned to add about 1 400 workers at factories in Japan to ramp up production of the new Prius and its updated Land Cruiser sport utility vehicle, people familiar with the matter said in August. Association of National Advertisers announced it hired two consulting firms to investigate the way media-buying agencies bid for business and ad placement and spend clients’ money. Toyota’s also betting improved acceleration and added safety features will lift demand for the $80 000 Land Cruiser, its most expensive SUV, in markets including the US.

The emergence of digital advertising has spawned “non-transparent” practices among media buyers as they shift away from traditional print and TV ad placements, according to the ANA.

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