VW Group sales lag in U.S.; sells $3.5 billion in bonds

VW Group sales lag in U.S.; sells $3.5 billion in bonds

May 16th, 2014 by Staff Report in Local - Breaking News

Volkswagen Group sales through April fell 4.9 percent in the United States even as the number of units it sold worldwide rose.

U.S. sales dropped to 184,300 in the four-month period, as lower results from its flagship VW brand offset an increase in Audi in North America, the automaker reported today.

Worldwide, the company sold 3.25 million vehicles, up 6.4 percent over the same period a month ago.

Group Board Member for Sales Christian Klingler said in Wolfsburg, Germany, that global market conditions are presenting a mixed picture.

"While there is a downward trend on the markets in South America or in Russia, we are seeing growth in Europe and above all in the Asia-Pacific region, where we continue to outperform the overall market," he said in a statement.

Meanwhile, Volkswagen sold $3.5 billion of bonds today in its biggest dollar-denominated sale ever, according to data compiled by Bloomberg.

Proceeds will be used for general corporate purposes, including working capital, according to a person with knowledge of the matter who asked not to be identified because they weren't authorized to speak publicly about it.

VW wants to build a new sport utility vehicle for the U.S., and the German automaker's Chattanooga plant is said to be the front-runner over its operations in Mexico.