Volkswagen Group quarterly profit increases on Audi A6, Tiguan demand
Volkswagen AG is seeing some positive turns in numbers for the third-quarter with a 46 percent increase in operating profit for both the Volkswagen Tiguan, and the Audi A6. The operating profit increase works out to $4.05 billion, up roughly $2 billion from last year, with revenue increased by 25 percent, as well.
Marc-Rene Tonn, a Warburg analyst, says “VW keeps performing well in an increasingly challenging market place. Expansion is fueled by a balanced model cycle and presence in key markets. VW’s order books are full; they should be on track to achieving their 8 million sales target.”
The sales target Tonn is referring to is VW’s goal to outsell Toyota Motor Corp as the biggest automaker in the world. With market expansions in the U.S. and China, and only an 11 percent increase needed to outsell the brand, it’s a definite possibility.
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A 62.4 billion euro investment is also in the plans for the Golf hatchback, VW’s top selling model, over the next 5 years. A sales target of over 10 million units per year also calls for a workforce expansion, and will open up over 50,000 jobs through 2018.
Share increases are up 5.4 percent, with an overall increase for the year at 2.6 percent.
Deliveries for VW through September have reached 6.1 million, or a 14 percent increase, in part due to a 20 percent increase in the U.S. and a 15 percent gain in China. The Golf and Polo models are up 12 percent and Audi’s A6 and Q5 are up by 17 percent, as well.
As for future moves for the automaker, VW recently received approval to acquire the majority of MAN SE, and will still merge with Porsche, pending the outcome of German and U.S. lawsuits over investment information. Suzuki is still looking to get 19.9 percent of its shares back from VW.
– By: Alexandra Koken
Source: Automotive News
