VW shares surge after jump in sales and positive US signal

Volkswagen shares surged on Wednesday after the German carmaker posted a strong rise in June sales and a judge gave preliminary approval to a deal aimed at ending part of the company's US legal woes as a result of its emissions testing scandal.

Global sales of VW brand cars jumped 4.7 per cent to 492,000 in June when compared with the same month last year, helped by record deliveries in China, the carmaker said.

The June gain was the first sales increase since January, as the carmaker has battled to overcome the emissions cheating scandal that engulfed the group after it admitted in September to installing software aimed at manipulating emissions testing around the world.

VW group shares opened 4.3-per-cent higher in Frankfurt after the release of the sales data.

The rise also followed Tuesday's decision by US Federal District Court Judge Charles Breyer to give preliminary approval to a 14.7-billion-dollar settlement between consumers and the authorities in the US and the company.

However, VW still faces legal action in the US following revelations that it cheated on emissions tests on its diesel models.

VW said the rise in June sales reflected strong demand for the compact Tiguan. VW models also include the Golf, Passat and Jetta.

The group said that first-half sales slipped 0.7 per cent to 2.93 million compared with the same period in 2015.

Sales of VW brands in China surged by 23.7 per cent to 220,500 in June compared with the same month last year with deliveries in the world's biggest car market hitting a record 1.39 million.

Last update: Wed, 27/07/2016 - 11:29
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