STORY: Volkswagen reported a 4% fall in global deliveries in the first three months of the year.
The German auto giant was hit by weak demand in China and the U.S.
VW said first-quarter deliveries dropped 15% in China and by a fifth in the U.S.
China has become a major challenge for German carmakers like VW, Mercedes-Benz and BMW.
They have to deal with an intense price war with fast-moving local brands like BYD.
China's slowdown has also hit Volkswagen brands Porsche and Audi.
Porsche's quarterly deliveries fell more than a fifth in the country.
VW also saw pressure from tariffs and the end of electric vehicle subsidies in the U.S.
The automaker said the first quarter saw - quote - 'very challenging economic and geopolitical conditions'.
Looking ahead, VW has bet on a wave of new EVs developed with local partners to regain ground in China.
It also plans model launches for Europe, where the group saw growth in the first quarter.
It said deliveries rose 4% in Western Europe and 8% in Central and Eastern Europe.
