Volkswagen expects a very demanding year due to the European debt crisis

Article by Christian A., on April 20, 2012

Because of the European debt crisis, Volkswagen has a “very demanding year" ahead of it as the growth in global economy and auto markets slow down, according to CEO Martin Winterkorn. Nevertheless, VW is “cautiously optimistic” for 2012 even with the economic uncertainties. Winterkorn talked to reporters last Thursday at the automaker's annual meeting.

He added that VW continues to aim for a boost in auto sales and revenue to be higher than 2011 results. The car markets in Asia, the U.S., Latin America and Russia had been growing. Meanwhile, VW achieved a 15% increase in group sales last year to a record-breaking 8.36 million cars.

In the first quarter worldwide, VW sold 2.2 million units. Winterkorn restated VW’s aim to match the record operating profit last year of 11.3 billion euros ($14.8 billion).

Aiming for bigger earnings this year may be obstructed by the costs for a technology overhaul meant to facilitate the construction of up to 3.5 million small and mid-sized cars. VW seeks to roll out over 40 new models or updated vehicles.

Winterkorn said that there are several hurdles that have to be resolved before it could combine with Porsche SE's automotive operations. Last September, VW scrapped plans to fully merge with Porsche as lawsuits against it in the U.S. and in Germany made Porsche’s valuation difficult.

VW would be getting a tax burden of around 1 billion euros if it would use its options to acquire the 50.1% of Porsche's core business that remain before 2014. Winterkorn expressed confidence that the integrated Volkswagen and Porsche group “will happen.” [source: Autonews]

If you liked the article, share on:

Comments

Recommended

Fans and enthusiasts of the BMW M2 in the United States could now rejoice. This comes as their favorite BMW M2 is getting a limited edition version as prepped by...
by - February 20, 2017
Carmakers usually leave us thirsty for information on whether they would introduce a new, refreshed or face-lifted vehicle and on when they intend to launch it. There are reasons for...
by - February 20, 2017
Cadillac’s CT6 full-size prestige-luxury sedan is still somewhat new. It has been offered to the global auto market for two model years – 2016 and 2017. But for those who...
by - February 19, 2017
In many industries, it is the rivalries that make things exciting. In basketball for example, there is the well-known rivalry between the Los Angeles Lakers against the Boston Celtics. For...
by - February 19, 2017
Now on sale in several major markets around the world including Europe, the BMW 5 Series (G30) heralds the arrival of the new seventh generation and represents a whole new...
by - February 19, 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