Volkswagen has made a great start to 2018. Its sales are up 10% compared to January of 2017. Chief Executive Fred Kappler said that this was the best start for Volkswagen in its history, with significant growth in all regions.  The auto giant, which owns Porsche, Audi and Skoda, was struggling due to its diesel emissions scandal which has already cost the company more than $30 billion. But the company seems to have bounced back in spectacular fashion. The main contributors to the sales boom the German auto maker is experiencing is due to China, and the SUV.

China has already grown to become the automakers most profitable market. It sold 4 million cars to Chinese buyers in 2017, and January sales jumped nearly 16%. Audi sales alone jumped up 73% in China. SUV sales have been skyrocketing as well. Volkswagen has stated that it is in an “SUV Offensive”, focusing on making more SUV transactions than smaller cars. SUV sales have soared, especially in China.  Volkswagen has been trying hard to look better in the public eye ever since its diesel scandal. It is incredibly hard for companies to bounce back from scandals, especially ones that cost billions of dollars. Many don’t survive, but Volkswagen somehow managed to do so. It is bouncing back with a vengeance, outperforming its previous sales records and becoming more profitable. The reason for the German automaker’s recent success is due to its sales strategy. Following the diesel scandal, Volkswagen began focusing on repairing its image and attacking new, emerging markets with its products. Now it is reaping the rewards with sales growth in the double digits in both South America and Asia. Businesses need to learn that hard times may come, whether it is a drop in sale, losing customers, or defective products, but in order to survive and continue to be successful you have to continue to push forward. Businesses can seek new markets, innovate their products, and like Volkswagen they have the bounce back and even be better than before.