VW has announced record profits, and says it aims to be the world's most ecological car maker
12 March 2012

Volkswagen has revealed the goal of becoming the world's most ecological car maker, off the back of record results for 2011. At a press conference in Wolfsburg, Germany this morning it announced an operating profit of £9.4 billion, up more than 50 per cent year-on-year.

The profits were achieved against eight million car sales, which resulted in sales revenue that rose 25.6 per cent to £133bn.

"The VW Group has extended its string of unbroken successes in 2011. We are making steady progress on our way to pole position in the automotive industry," said Professor Dr Martin Winterkorn, chairman of VW's Board of Management, referring to its goal of being sustainably the biggest car maker from 2018. It is currently behind GM and vying with Toyota in the battle to be the world's biggest car maker.

To achieve its ecological goals, Winterkorn announced a restructuring programme to hit the goal of having fleet average emissions of 120g/km of CO2 by 2015. Winterkorn said that to achieve this every new generation VW will have to cut emissions by between 10 and 15 per cent. As part of this programme, stop-start will be fitted as standard to all new models. In addition, Winterkorn outlined plans to lower emissions from the group's 94 plants by 25 per cent by 2018, which will require an investment of £250m.

Total sales were up by more than 1m vehicles year-on-year.

Sales were split between VW passenger cars (5.1 million cars, up 13.1 per cent year-on-year), Audi (1.3 million from 1.1 million), Skoda (879,000, up 15.3 per cent), Seat (350,000, up 3.1 per cent), Bentley (7003, up 36.9 per cent), Lamborghini (1600, up 23 per cent), VW Commercial Vehicles (529,000, up 21.4 per cent), Scania (80,100, up 25.7 per cent) and MAN, in which VW has recently taken a 57.33 per cent stake (24,750 sales).

Despite the sales growth, Seat was the only VW Group brand to make an operating loss. Volkswagen's chief financial officer Hans Dieter-Potsche said this was put down to a shrinking home market and heavy investment in new products.

In 2010 Bentley had also made a loss, which was attributed to the global economic situation. Bentley made a profit in 2011.

Winterkorn also signalled his optimism for 2012, despite the Eurozone's economic uncertainties. He said sales in January and February were up 7.7 per cent year-on-year.

"This year we will again be launching 40 new models, successors and product enhancements across the group," he said. "As a result we expect to increase deliveries year-on-year.

Winterkorn also reiterated that work to integrate Porsche into the VW Group is ongoing. "I can say today this will happen, but there are still hurdles to cross in our path towards that goal," said Winterkorn.

Winterkorn also announced each of the VW Group's 500,000 employees would enjoy a profit-share bonus of £6277 off the back of the record results, a figure up 90% year-on-year.

Winterkorn himself will receive £14.2m as part of his profit-sharing related bonus and salary.

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Comments
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12 March 2012

Considering the rumours that VAG were unhappy with SEAT, they have still posted a 3.1% increase in sales in 2011, which quite a few car companies out there would be more than happy about.

Overall though, these are impressive figures but can the numbers be sustained as they are predicting?

 

 

It's all about the twisties........

12 March 2012

[quote TegTypeR]

Considering the rumours that VAG were unhappy with SEAT, they have still posted a 3.1% increase in sales in 2011, which quite a few car companies out there would be more than happy about.

[/quote]

Although "Despite the sales growth, Seat was the only VW Group brand to make an operating loss"

 

Hydrogen cars just went POP

12 March 2012

Just goes to show all you need are good cars, good managerment and good marketing. They've must now have happy employees too "each of the VW Group's 500,000 employees would enjoy a profit-share bonus of £6277 ", that's almost enought to buy a whole VW Up!

 

Hydrogen cars just went POP

12 March 2012

"each of the VW Group's 500,000 employees would enjoy a profit-share bonus of £6277 ",

If i ever get sight or sound of this, i will let you know!

I don't hold out much hope!

12 March 2012

Should we be surprised? Considering that the price of the average car seems to have gone up and up so that a new bog standard Golf seems to be nearer £20k now than the £15/16k it was not so long ago, i would be amazed if VW had not made hefty profits. There is something of the profiteering air about a company that can announce a 50% increase in profits during a recession.


Enjoying a Fabia VRs - affordable performance

12 March 2012

[quote ordinary bloke]Should we be surprised? Considering that the price of the average car seems to have gone up and up so that a new bog standard Golf seems to be nearer £20k now than the £15/16k it was not so long ago, i would be amazed if VW had not made hefty profits. There is something of the profiteering air about a company that can announce a 50% increase in profits during a recession.[/quote]

It wasn't a recession for Volkswagen (you did see the increase in sales year on year?) Those extra vehicles they built over last year are very cheap to make and are a large contributor to the increase in profits.

It's not just VW that have raised their prices over the last 2 to 3 years. In fact a VW now seems just as affordable as buying a similar Ford / Vauxhall. That never used to be the case a few years ago. They always used to be about 10% more expensive than other equivalent ranges.

Appears you can still get a Golf for £15k according to their website. It will probably not be a very nice one, but....

I think VW realise that 98% of people don't give a flying fig that their car is largely the same as 2 or 3 others in the VW empire. A fact that seems to rankle with a lot of people who are remotely interested in cars.

Notes of interest from their I.R report. Audi contributed 5.3 billion euro of this profit from 1.3 million cars. VW cars contributed 3.7 billion euro from 5.1 million cars. Bring on the Audi haters..... ;-]

12 March 2012

[quote Crixter]

"each of the VW Group's 500,000 employees would enjoy a profit-share bonus of £6277 ",

If i ever get sight or sound of this, i will let you know!

[/quote]
probably in a pithy inflationary pay-rise. yet the big bosses will get larger chunks. Not that I'm all for being a communist but it's the blue collars who deserve most of the credit here. It's not Winterkorn's company so does he really deserve 14.2 Million? It's not as if he's scratching his head each month wondering how the bills are going to get paid is it...
Sorry for the rant...
Hope you get that bonus Crixter

12 March 2012

[quote xxxx]Although "Despite the sales growth, Seat was the only VW Group brand to make an operating loss"[/quote]

As they said though, they are doing a lot of R&D so that is to be expected. The fact they are still growing their sales is positive news in anyones books.

 

 

It's all about the twisties........

12 March 2012

[quote TegTypeR]

[quote xxxx]Although "Despite the sales growth, Seat was the only VW Group brand to make an operating loss"[/quote]

As they said though, they are doing a lot of R&D so that is to be expected. The fact they are still growing their sales is positive news in anyones books.

[/quote]

I think they need to do a bit more R&D judging by the next Toreldo and Exeo (rebadged old Audi A4)

 

Hydrogen cars just went POP

12 March 2012

[quote Crixter]

"each of the VW Group's 500,000 employees would enjoy a profit-share bonus of £6277 ",

If i ever get sight or sound of this, i will let you know!

I don't hold out much hope!

[/quote]I hopeyou do see that money as its deserved considering the massive profits VW accumulated.Typical press spin by a multinational that 'we value our employees,but the reality always the opposite.

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