Audi lost claim to being the sole cash contributor to Volkswagen

Article by Christian A., on August 25, 2010

Audi's first-half results released last Friday indicate that it will not anymore be the sole cash contributor to Volkswagen AG -- news that is expected to relieve the concerns of VW's shareholders.

Last year, VW had been totally dependent on Audi to money required to finance an ambitious growth strategy that included acquiring almost half of Porsche's sports car business in December for nearly 4 billion euros ($5.2 billion).

Analysts had been worried that the other eight brands -- including the flagship VW marque appeared to be incapable of paying for investments without draining their own funds from operations at the same time.

Nonetheless, Audi's results reveal show that its net cash rose to 11.80 billion euros ($15.4 billion) at the end of June. This accounted for about two-thirds of the 17.5 billion euro war chest parent Volkswagen reported last Thursday.

There is a marked difference from last year, when VW's automotive business would have been in debt at the end of 2009 if not for Audi's 10.67 billion net cash contribution to its parent. Audi forecasts that liquidity at the end of this December would be higher than a year ago. Audi appears to imply that net cash could fall by over 1 billion during the course of the second half.[via autonews - sub. required]

Topics: audi, vw, sales

If you liked the article, share on:

Pin It

Comments

Recommended

South Korean car company SsangYong recently revealed sketches of their upcoming SUV. We’re not always impressed by Korean car designs, but this one looks quite promising. Yup, it is the...
by - March 26, 2017
Twenty-eight years after the company was first launched by Toyota, which was initially targeted to the United States market only, Lexus has already made its way to over 70 countries....
by - March 26, 2017
Last year was probably Porsche’s best year ever in terms of sales. Their factory in Stuttgart delivered 237,778 cars in total, which represents a six percent increase compared to the...
by - March 26, 2017
Lamborghini has disclosed that it is looking into the possibility of releasing electric vehicles. With the Volkswagen Group revealing that it will be releasing electric vehicles within several years, there...
by - March 25, 2017
Daimler AG, through its Smart division, has disclosed that its two electric models, the Smart ForTwo and the Smart ForFour are now open for orders in Germany. Official market launch...
by - March 25, 2017
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