Volkswagen AG is now laying the foundations for a profitable growth in all business fields and segments, Chief Operating Officer Martin Winterkorn declared during the German carmaker’s recent annual shareholders meeting in Hamburg.
He also mentioned that the company’s plans to increase its vehicle models and production plants will ensure “profitable growth” for the years to come. Winterkorn said that VW “moved into the fast lane in 2010” and that the company intends to stay on this path in the coming years.
Specifically, the company revealed that it is introducing about 30 models and vehicle upgrades in the next months in all its brands, including its Czech unit Skoda and luxury division Audi.
Moreover, the company is expanding its operations in China. On May 24, 2011, the company will open a plant in Chattanooga, Tennessee. Furthermore, the company is relying on the market growth in China, Russia, Brazil and India so that it can outperform Toyota Motor Corp. as the largest automaker in the world by 2018.
After reporting 7.2 million deliveries of vans, cars, and sport-utility vehicles in 2010, VW forecasted that its worldwide sales will be up 5 percent this 2011.
Last April 27, the company revealed that its earnings before tax and interest in the first quarter increased more than thrice to EUR2.91 billion ($4.3 billion) from EUR848 million in the same period last year. According to Winterkorn, 2011 seems like a promising year for the company as well as the vehicle industry despite the uncertainties in the economy.
In the 2010 fiscal year, the Volkswagen Group took advantage of the recovery of the global economy and the automotive industry from the global financial and economic crisis. As such, the carmaker saw its vehicle deliveries jump 13.7 percent year-on-year, breaking through the seven million mark for the first time. That year, the VW Group delivered 7.28 million vehicles around the world.
In the 2010 fiscal year, the Volkswagen Group generated sales revenue of EUR126.86 billion, up 20.6 percent from the previous year, as made possible by higher volumes. The largest proportion of sales revenue, at 77.4 percent (71.6 percent), was generated outside its home market, Germany. The Group’s operating profit in the period was also higher than in the previous year at EUR7.14 billion (EUR1.9 billion).
In addition, the Volkswagen Group posted a record profit in 2010. Profit before tax was EUR8.99 billion (EUR1.3 billion), compared to EUR1.26 billion in 2009. The Volkswagen Group’s profit after tax in EUR7.2 billion was EUR7.23 billion, exceeding its prior-year figure by around EUR6.3 billion.