Volkswagen’s deliveries drop, highlighting Europe’s car industry challenges

Volkswagen Group on Friday reported a 7 per cent decline in third-quarter global deliveries, showing how Europe’s car industry is facing tough challenges, including weak demand from China and high production costs at home.

Europe’s car companies also have to contend with the impact of a potential trade war between Beijing and the European Union as the EU presses ahead with import tariffs on Chinese electric vehicles, imposed over alleged subsidies.

VW, Europe’s biggest automaker...