Volkswagen is confronting a horrible reality at home

Volkswagen Group has been one of the largest and most profitable car companies in the world.

In spite of its well-documented struggles in the US market, the German automaker has thrived just about everywhere else.

Even with the pressures placed on Volkswagen Group, it was thought the company could rely on its Chinese and European strongholds to get it through the tough times.

Unfortunately for VW, fallout from its massive emissions cheating scandal is now clearly affecting sales in Europe.

Volkswagen Group has lost market share in Europe for the sixth month in a row, Bloomberg’s Tom Lavell reported.

According to a report from the European Automobile Manufacturers Association, Volkswagen Group’s market share has fallen to 24.1% over the first two months of 2016. That’s down from 25.4% over the same period last year.

Although registrations of new VW Group cars in the EU are up 4.5% for the first two months of 2016, registrations of new cars across all brands rose 10.1% over the same period.

The company’s volume-leading VW brand has been hit the hardest. Registrations of new VW brand cars are flat at just 0.2% growth this year. Consequently, VW’s inability to keep pace with the rest of the European market has seen the brand’s share plummet from 12.7% to 11.5%.

The majority of Volkswagen Groups growth this year have been at Audi. The luxury automaker has seen its share increase to 5.5% — up from 5.3% this time last year.

Other companies have taken advantage of VW’s troubles to pick up share in the Europe. The biggest winner so far this year has been Fiat Chrysler which has seen its share surge 0.6% from 6.6% to 7.2%. According to Bloomberg, FCA’s sales have been buoyed by the popularity of its Fiat 500X and Jeep Renegade crossovers.

Other winners include Jaguar Land Rover and Mazda — both of which picked up 0.4 % of share. Ford has picked up 0.3% of share this year while VW Group’s German rivals at Mercedes and Opel (GM’s European operation) both picked up 0.2%.

In the US, Volkswagen’s sales situation has gone from bad to worse. For the year, Volkswagen sales are down nearly 14% at a time when many of its rivals are reporting double-digit growth.

Even more troubling is the brand’s continued loss of market share. In the first half of 2015, Volkswagen held a disappointing 2.1% share of the US market. After the company’s emissions scandal broke in September and the well of generous incentive money for dealerships dried up, sales have declined. By last month, the company’s share in the US market is down to 1.7%.

Last week, Volkswagen Group of America CEO Michael Horn abruptly left the company after a little more than two years on the job.

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