Volkswagen Group disappointed as its fourth-quarter operating profit declined

Article by Christian Andrei, on February 26, 2012

Volkswagen Group posted a record for its full-year results for 2011 even as its fourth-quarter operating profit declined. According to the preliminary full-year results announced last Friday, its quarterly operating profit fell 0.9% to 2.29 billion euros ($3.05 billion). Analysts predicted a small increase to 2.38 billion over the strength of improvements at the automaker’s core VW and Audi car brands.

VW’s full-year profit for 2011 rose by 58% to 11.3 billion euros – an all-time high for the group. During the previous year, it posted 7.14 billion euros. Its net income for the year had more than doubled to 15.4 billion euros.

Its profit was affected by a gain from the revaluation of Porsche options of the group. In 2011, a record 8.27 million vehicles was delivered by VW. Its brands include Skoda, Seat, Lamborghini and Bentley.

The group seeks to raise its annual sales to 10 million by 2018 at the earliest as it aims to overtake General Motors Co. to be the largest automaker in the world. For the next five years, VW plans to invest a record 62.4 billion euros on plants, models, research and development for its global expansion.

Due to the strong demand in the U.S. and China (its biggest market), VW and Audi have expanded its SUV production. Its pending mergers may lead to future VW growth.

Last year, VW took a majority stake in German truckmaker MAN SE, increasing its holding to 55.9%. VW is hoping to achieve closer links between MAN and Sweden-based Scania AB, which it also controls. VW actually aims to forge a three-way truckmaking alliance. VW said that this tie-up could save up to 1 billion euros in annual costs.

Topics: vw, profit

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

BMW’s 550i xDrive has long been considered as one of the most successful business sedans in the world. For the brand, this may not be enough as it has officially...
by - January 20, 2017
Amazon is now moving beyond the four corners of online retailing. Only recently, the retail giant has been awarded a patent for its Road Network system. Since the patented technology...
by - January 20, 2017
The newest version of the Lamborghini Huracan is not a Superleggera, but a Performante. When Lamborghini filed for a patent for a new name, there were still debates whether this...
by - January 20, 2017
What is hotter and more menacing than a Hellcat? If we ask Dodge, its answer would be the “Demon.” Of course, we aren’t talking about a demon with horns and...
by - January 20, 2017
The 2018 model year could be an exciting year for fans and enthusiasts of the Chevrolet Corvette. This comes as the 2018 version of the Corvette is bound to feature...
by - January 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