Investing.com -- Volkswagen AG reported an 8.6% decline in global deliveries during the second quarter on Friday, as a sharp drop in China offset gains in North America and Western Europe.

Deliveries in China, the automaker's largest market, fell 36.6% during the quarter. Sales rose 7.7% in North America and 1.8% in Western Europe, the company 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.

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 BMW and Porsche this week also reported lower second-quarter deliveries due to competition and subdued demand in the Chinese market.

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