Volkswagen boost sales in Scotland despite emissions row

In September, 3,959 new Volkwagen cars were registered to drivers in Scotland compared to 3,768 in September 2014 - an increase in sales of five per cent.

Volkswagen revealed last week that almost 1.2 million of its UK vehicles are fitted with a defeat device to cheat emissions tests are in the UK, with VW Group subsidiary brands including Audi, Seat and Skoda also affected.

However, the figures from the Society of Motor Manufacturers and Traders (SMMT) show that sales of all three were up in Scotland despite the adverse publicity.

Audi increased sales of new cars by almost seven per cent, from 2,208 in September 2014 to 2,360 last month, while sales of brand new Seats went from 814 to 972 - a 19 per cent year-on-year growth.

Skoda experienced an 18 per cent year-on-year boost in new car registrations, from 978 to 1,157.

The scandal broke on September 18 in the middle of what is traditionally one of the busiest months of the year for new car sales in the UK due to the number plate change.

Nonetheless, total sales of new cars in September were up 4.07 per cent in Scotland, to 43,554.

Meanwhile, total new car sales for the year to date are up 1.81 per cent - lagging behind the UK average of 7.61 per cent.

Sandy Burgess, chief executive of the Scottish Motor Trade Association (SMTA), said the figures were “none the less most encouraging” given Scottish dealers dependence on the retail market while England attracts a larger share of large fleet registrations.

Mr Burgess added: “We are now seeing some movement in the business car registration numbers which will help to maintain the activity for the coming months as this has been quite quiet to date.

“Dealers have reported that the conditions in the month were ‘challenging’ but the fact that such a level of growth has been recorded despite the controversy that was raised in the middle of the month with the VW emissions issue, it is obvious that the active marketing and strong incentives have maintained the momentum which should mean that 2015 will finish ahead of 2014.”

The most popular make and model of new car among Scots motorists in September remained the Vauxhall Corsa, followed by the Ford Fiesta and the Renault Clio.

Demand for new cars was highest in the Central Belt regions of Strathclyde and Lothian, while sales in rural areas such as Grampian and the Borders were down on September 2014.

It came as Volkswagen’s new chief executive, Matthias Mueller, told more than 20,000 gathered workers that the company will have to review planned investments and contain costs as it works to overcome the emissions row which has wiped more than a third off the company’s share price.

Mr Mueller vowed that “we will overcome this crisis” but said it “would not happen without pain”.

He told the meeting at the company’s sprawling home plant in Wolfsburg, Germany, that the company would have to put its future investments in plants, technology and vehicles “under scrutiny” to spend only what was needed to maintain a leading edge.

He told concerned workers that “we will do everything to ensure that Volkswagen will stand for good and secure jobs in the future as well”.

Volkswagen faces fines and lost sales after US environmental regulators found it had installed software that disabled pollution controls when the vehicle was not on the testing stand.

The company has set aside €6.5 billion (£4.8 billion) to cover costs but analysts say that is unlikely to be enough.

Mr Mueller said some of the 11 million cars affected worldwide could be fixed by adjusting the software, while others would need mechanical fixes.

Volkswagen’s chief employee representative, Bernd Osterloh, said that the emissions-rigging scandal will not have an effect on jobs for the time being, adding that a “crisis caused by a circle of managers, is not settled on the backs of employees”.