Detroit Bureau on Twitter

Posts Tagged ‘VW profits’

Volkswagen Contemplates Building a Gigafactory

New plant to supply burgeoning EV line-up.

by on May.31, 2016

Volkswagen officials show off the maker's new battery electric minivan concept, BUDD-e, earlier this year.

Since the scandal surrounding its diesel engines broke, Volkswagen has been pushing its electrification program to the fore to show its commitment to green technologies. Skeptics wondered how serious the maker was.

Apparently giga-serious.

Subscribe Now!

The company is contemplating building an $11 billion gigafactory of its own to churn out batteries for its electric vehicles, according to a report from Handlesblatt, a German publication. (more…)

New VW CEO Mueller Faces Long List of Challenges

Immediate challenge rebuilding trust; rebuilding profits comes later.

by on Sep.25, 2015

New Volkswagen CEO Matthias Mueller, shown during the debut of the Porsche Cayman.

As the new head of Volkswagen AG, Matthias Mueller will be overseeing the largest automaker in the world, a sprawling empire of brands and manufacturing facilities stretching from Beijing to Berlin. But that empire is also facing the biggest crisis in its 78-year history, one that some observers believe could destroy it.

The veteran Volkswagen executive, who until this morning was in charge of the Porsche brand, will now run the entire company, replacing Martin Winterkorn as CEO, Winterkorn forced out in the wake of the disclosure VW had been cheating on diesel emissions tests. Even as the VWAG board met to approve the 62-year-old Mueller’s promotion, authorities said the maker had rigged tests on 2.8 million diesel vehicles sold there, more than six times as many as have been impacted in the U.S.

Beyond the Headlines!

“He’s walking into a firestorm,” said analyst Joe Phillippi, of AutoTrends Consulting. But Phillippi stressed that even if Mueller can come up with a “fix-it plan,” VW’s troubles are far from over, “and are going to take years to resolve.”

(more…)

Volkswagen Reports 20 Percent Profit Jump

Audi, Porsche results lead to strong results.

by on Feb.27, 2015

VW CEO Martin Winterkorn is expressing caution about 2015 after a strong 2014.

Volkswagen reported a 20% increase in net profits in 2014 and despite predicting it would meet it’s lofty ambition of selling 10 million units this year – three years early – it is cautious about 2015.

“Given the subdued growth prospects in regions outside China, there is no guarantee that 2015 will be a successful year – either for the industry or for the Volkswagen Group”, said Chief Financial Officer Hans Dieter Pötsch.

Automotive Insight!

The automaker was led by strong sales years by its luxury unit, Audi, and sports car maker, Porsche. Actually, if you include heavy-duty trucks, VW exceeded that number by delivering a total 10.14 million, which is an increase of 4.2%. However, the number was meant for passenger cars and it expects to hit the number. (more…)

Volkswagen Reports Jump in Q1 Profitability

Group rides Audi, Porsche, heavy trucks to increase.

by on Apr.29, 2014

VW CEO Martin Winterkorn announced the automaker saw operating profit rise 21.8 percent during the first quarter.

Volkswagen AG enjoyed a strong first quarter reporting a 26.8% increase in net income as well as a 21.8% rise in operating profit on just a 2.7% jump in revenue. Most of the company’s brands saw an increase in operating profit, except its namesake brand, Volkswagen.

VW’s operating profit was about $610 million for the quarter compared with about $815.2 million a year ago. The company said, “it was negatively impacted by lower sales volumes, negative exchange rate trends especially in South America and Russia and higher upfront investments in new technologies, while lower material costs and improvements in the mix had a positive effect.”

Global Outlook!

Porsche recorded an operating profit of $957.6 million in the first three months compared with $791.7 million for the same period last year. (more…)

Volkswagen Rides U.S., China Sales to Operational Profit Increase

Poor European sales, other expenditures crush net income.

by on Oct.30, 2013

VW's Martin Winterkorn said the company's goals for the year remain unchanged despite difficulties in Europe.

Volkswagen AG rode U.S. and China sales to a 20% increase in operational profits in the third quarter despite a 3.8% drop in revenue. However, the company’s net profit dropped to $2.6 billion (1.9 billion euros) from $15.6 billion (11.3 billion euros).

Operational profits, which are profits before taxes and interest, rose to $3.8 billion (2.78 billion euros) from 2.32 billion euros.

Your Globally Connected News Source!

Group deliveries increased by 4.8% to 7.2 million vehicles worldwide. The Group’s share of the passenger car market rose year-on-year to 12.7% from 12.6%. (more…)