Vw of America will post a sales profit this year for the first time since 2003

Article by Christian Andrei, on November 22, 2011

Volkswagen Group of America will post a sales profit this year, according to CEO Jonathan Browning. This will be the first time that the company will post a profit in its sales operations since 2003. Browning added that the U.S. business, which includes Audi, will also be profitable in 2012 despite the fact that a share of fixed worldwide manufacturing costs are allocated that reflect the assembly plant now operating in Chattanooga, Tenn. In an interview at the car show in Los Angeles, Browning said that this is about the quality of the revenue and of sales, and not just about volume.

He added that what one sees is customers "connecting with VW" and the company's "momentum continuing." Through last month, the sales of VW brand have been up 24 percent from last year and will top 300,000 units for the first time since 2003. According to executives, they are on track in reaching 800,000 sales in 2018.

Despite the huge jump that the VW has to make to reach the 2018 target based on today's volume, the company's new chief marketing officer, Tim Mahoney, believes that it can be accomplished.

He forecasted that the redesigned Jetta routinely will reach 150,000 sales annually in the next years, with the Passat close behind and the Tiguan in the 120,000-plus unit range. Through October, the company has sold 150,046 Jettas, a 52 percent increase over last year. The company is on track to achieve an all-time high for Jetta sales in the U.S. [source: Autonews]

Topics: vw, sales, profit

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