By Reuters

(Reuters) - Volkswagen reported a 8.6% decline in ​global deliveries in the second quarter ‌on Friday, as a sharp drop in China outweighed gains in North America and Western Europe.

Deliveries in ​China, the automaker's largest market, fell ​36.6% during the quarter, while sales rose ⁠by 7.7% in North America and 1.8% ​in Western Europe, Volkswagen said in a ​statement.

"The situation in China remains challenging, where we were unable to escape a significant total market decline ​of around 20 percent," Marco Schubert, a ​member of Volkswagen's extended executive committee for sales, said ‌in ⁠a statement.

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Volkswagen is the latest German automaker to report weakening sales in China, where domestic rivals have intensified competition and a ​broader slowdown ​in demand ⁠has weighed on foreign brands. Mercedes-Benz(MBGn.DE),  BMW(BMWG.DE) and Porsche(P911_p.DE) this week also reported lower ​second-quarter deliveries, hit by competition and ​subdued ⁠demand in the Chinese market.

The delivery decline comes as Volkswagen considers a sweeping overhaul that ⁠could ​eliminate around 100,000 jobs through ​model cuts and further capacity reductions aimed at improving ​profitability.