Audi expects better sales this year as it launches a dozen new models

Article by Christian Andrei, on August 25, 2010

Audi is optimistic that this year, it will be able to surpass its contribution in earnings and cash to parent Volkswagen AG in 2009. Audi is banking on its launching of a dozen new models, including the A1 subcompact. Audi CEO Rupert Stadler said that while the company thinks that the worst of the crisis is over, it cannot give the all-clear for 2010 yet.

He said that he recognized signs that the financial crisis is going to take longer to improve than initially assumed. If not for Audi‚ net cash position last year, VW's entire value of 10.6 billion euros ($14.42 billion), which it will use for its latest acquisitions, would have effectively been zero.

Car markets had suffered greatly, and it affected premium carmakers even more but Audi had trimmed down its inventories to help boost net cash flow by 21% to 2.32 billion euros.

Audi Chief Financial Officer Axel Strotbek forecast higher revenue and operating profit as the brand aims to exceed the one-million mark in vehicle sales this year.

In Audi's annual report, the company stated that it expected retail volumes, turnover, earnings and margins to improve next year.

Operating profit may have dropped by 42% last year but income from interest on its large cash pile as well as financial currency hedges lifted its earnings to 1.93 billion euros before tax, surpassing even that of parent VW by nearly 670 million.

Topics: audi, sales

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

In the minivan segment, the 2017 Chrysler Pacifica is already impressive in terms of fuel economy figures – as rated by the United States Environmental Protection Agency. In fact, the...
by - December 2, 2016
Having a blacked-out Bentley Mulsanne Speed is already menacing by itself but by naming it as the Bamford X, it became all the more imposing. This model was made by...
by - December 2, 2016
We have good news for those who are waiting for the latest version of the Mazda CX-5 compact crossover. It was just unveiled in November at the 2016 Los Angeles...
by - December 2, 2016
Those familiar with racing know that Marco Wittmann’s win during the 2016 Deutsche Tourenwagen Masters held last May was noteworthy as it was his second title in four seasons. In...
by - December 2, 2016
Volvo has revealed that while its products are used by a number of police organizations around the world, it will be the Swedish police that will get the first chance...
by - December 2, 2016
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries