Problems with the launch of Volkswagen's new Golf (pictured below) have left it almost 20 per cent behind target for this year's production, said Bernd Pischetsrieder, chief executive of Europe's largest motor vehicle manufacturer.
Production of the Golf is 25,000 units behind the 135,000 goal for this year.
However, next year's sales target of 600,000 would not be affected, Mr Pischetsrieder said. "The problems are fixed," he told German newspaper Welt am Sonntag.
Difficulties with another launch could increase pressure on Folker Weissgerber, director in charge of production, who has already faced criticism for the botched start-ups of other models.
The slow start for the Golf comes as a further blow to VW, which is already reeling from a €1.2 billion hit to profits from the strong euro and the cost of relaunching many of its models.
It is also suffering from its strategic move upmarket, where it plans to write off several hundred million euros of investment in the Phaeton, its top of the range VW-branded saloon.
The new Phaeton has sold only 6,000 units this year, half the original target and below the revised goal of 7,200. The company has already lowered next year's target from 20,000 to 15,000.
VW had its credit rating downgraded one notch to A2 by Moody's last week with a negative outlook, meaning another downgrade is possible. It has already warned that this year's profits will be less than half last year's.
(Financial Times service)