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VW First Quarter Profit Drops

Despite drop, maker’s market share improves.

by on Apr.29, 2013

Volkswagen reported a drop in income, but an increase in Q1 market share.

Volkswagen AG saw its earnings and revenue decline on a year-over-year basis during the first quarter as the European debt crisis continued to stifle sales across Europe and left the company’s Seat brand in the red.

VW’s after tax earnings fell to 1.9 billion euro, or $2.5 billion, from 3.1 billion. Overall, VW’s sales revenue in the first three months dropped 1.4% to 46.6 billion euros from 47.3 billion euros in the first quarter of 2012.

Despite the challenging conditions and intense competition VW bolstered its overall global market share, which climbed to 12.6% from 12.2%. Including China, deliveries increased by 4.8% to 2.3 million vehicles worldwide.

Geared Up for News!

“We made a healthy start to the year, but the coming months will be anything but easy. The current environment is definitely a tough challenge for the entire industry,” said VW Chairman Martin Winterkorn, adding he remained optimistic about the company’s outlook.


VW AG Q2 Income Drops 83% but Remains in Black

Q2 Profit of €283 million comes from Chinese and Brazilian markets as Europe and U.S. remain weak.

by on Jul.30, 2009

VW's WinterKorn and Merkel

German Chancellor Angela Merkel talks to employees at Volkswagen do Brasil.

Volkswagen AG, the biggest carmaker in Europe and soon to be owner of Porsche, rung up second quarter results that look like the worst of the Great Recession is over for it, according to our reading of its latest financial statement issued this morning.

The Wolfsburg-based German maker saw sales of light vehicles decline 4.4% during the first half of 2009, as the global sales declined 18%. This relatively better performance than the overall market came in spite of troubles with its Skoda and Seat brands in Europe, notably in Spain and the U.K. 

The real growth, which kept VW Group in the black during Q2 to the surprise of some analysts, came from strong performances by the VW brand in Brazil (+7%) and China (+23 %), now VW’s largest market. Audi also contributed with its strong performance in the Chinese market.

Results were also strong for the first half of 2009 as the Group made a €1.2 billion operating profit in H1 2009. Its global market share is now 12%.

In the first six months of the year, Europe’s largest automobile manufacturer delivered 3.1 million (H1 2008: 3.3 million) vehicles worldwide. Sales revenue declined by 9.4% to €51.2 billion (€56.5 billion ’08) in the first six months due to volume-related factors. Operating profit amounted to €1.2 billion (€3.4 billion), of which €928 million is attributable to the seasonally strong second quarter. The Group generated profit after tax of €494 million (€2.6 billion).

Q3 is Next!

Q3 is Next!

“The course of the year so far shows that we are excellently positioned, thanks to our multi-brand Group model. Even in a particularly difficult phase in the international automotive markets we were able to gain share in key markets. This has further improved our position on our way to the top,” said Prof. Dr. Martin Winterkorn, Chairman of Volkswagen AG’s Board of Management.


Volkswagen Group Profits Decline Sharply Even With the Sale of its Commercial Truck Business

Based on "extremely weak business" in the first quarter, a full year earnings decline is predicted.

by on Apr.22, 2009

A global footprint, strong sales in China and a fuel efficient lineup mean positive results.

No 'blue sky," but a global footprint, strong sales in China and an efficient line mean positive results.

In the face of a 21% overall decline in global vehicle demand, Volkswagen Aktiengesellschaft still managed to make an operating profit and increase its liquidity during the first quarter of fiscal year 2009.

The VW Group’s operating profit amounted to €312 million ($406 million) down from €1.3 billion ($1.7 billion) in the year earlier quarter. A loss was only prevented by the one-time sales of its Brazilian commercial vehicles business that contributed positively around €600 million to the results. Automotive net liquidity rose to €10.7 billion from €8.0 billion compared with the end of 2008.

“The Volkswagen Group, too, is not immune to the dramatic deterioration in the global business environment,” said the Chairman of the Board of Management, Doctor Martin Winterkorn, on Wednesday. The Group’s unit sales declined by approximately 16% in the first three months; production has been cut by around 25% and inventories reduced significantly as a result, he claimed.

“The strengths of our multi-brand Group prove themselves especially in difficult times: we have increased our global market share thanks to our young and environmentally friendly model range, and are in a sound financial position,” stressed Winterkorn. “Our goal for fiscal year 2009 remains to outperform the market as a whole and to gain additional market share.”

With its nine brands and what he calls a young model range, Winterkorn thinks the Volkswagen Group is well positioned. In 2009, the individual brands will again introduce numerous new and low-fuel consumption models that will further extend the Group’s product portfolio and cover new market segments. “For this reason, although we assume that the Volkswagen Group will be unable to escape the downward trend, we believe that it will perform better than the market as a whole and will be able to gain additional market share during the crisis” Winterkorn said.  (more…)

Volkswagen Group Leaps to Number 1 Worldwide

But there's pain in Spain and some other potentially serious problems looming.

by on Apr.17, 2009


Volkswagen Group sales may have surpassed Toyota's during the first quarter of 2009.

Forget Toyota.  The Japanese maker’s brief reign as the world’s best-selling automaker may already be over.  For the first quarter of 2009, at least, the new king-of-the-hill is Volkswagen AG.  But the silver lining is surrounded by at least a few gray clouds.

VW increased its market share to 11.0% from 9.7%  for the first quarter. Despite the worldwide market for automobiles shrinking more than 20% in the first quarter of the year, 1.39 million vehicles were delivered, an 11.4% drop from the same period in 2008 of 1.57 million.

Detlef Wittig, EVP group sales and marketing proclaimed,  “Our young and efficient model range, with some 180 different vehicles, is paying off. Our portfolio contains exactly the cars which are in demand by customers.”

The AG’s dominant brand, VW, saw its world market share grow 1.1 points to 7.4%, with first quarter sales of 876,000, a 4.8% decline.  The Audi and Škoda brands each reported a 0.1% increase in market share, while SEAT’s share remained stable.

VW’s North American operations upped its market share a solid 1.0 point to 3.7%. In the U.S., the Group delivered 58,300 vehicles.  That was down 19.3%, but considering the overall market, VW put in a better performance than the average of the competition, with the overall American market declining 38.4% during the quarter.

Optimistically, Wittig said, “During this year we will be debuting around 60 new models, product enhancements and successors with highly-efficient, low-consumption engines. With this model roll-out, we are very confident that we can, as planned, perform significantly better than the competition in 2009.”

Nice spin, right? Looking at preliminary numbers Toyota is/could/maybe going to lose it’s #1 position … for the first quarter, anyway.  But, remember, it takes four quarters to make a fiscal year.  And not all is well in Wolfsburg. (more…)