VW Group targets ten million income this year on model expansion

March 13, 2014 – 5:50 am ET

BERLIN (Bloomberg) — Volkswagen Group could sell more than 10 million automobiles in 2014, 4 many years earlier than planned, as Europe’;s biggest automaker accelerates model introductions in a approach to overtake Toyota Motor Corp. as the global product sales leader.

“There is a great opportunity we will currently attain our 10 million deliveries mark this yr,” CEO Martin Winterkorn stated.

“With increasing volume and new designs, we will increasingly see constructive earnings results as effectively,” he additional in the course of VW Group’;s yearly press conference right here these days.

VW Group sold 9.72 million vehicles in 2013, which topped Standard Motors Co.’;s  9.71 million, to become the world’;s second-greatest carmaker.

Volkswagen, which has budgeted 84.2 billion euros ($ 117 billion) in investments through 2018 to pursue a aim of taking the No. one spot from Toyota, stated it will introduce more than 25 designs this year and up coming, like vehicles for the mass-market VW nameplate and the Audi and Porsche premium marques.

Europe’;s auto market place is pulling out of a 6-year slump and auto income in China carry on to rise, even as economic development is set to slow. At the exact same time, demand has been softening in emerging markets, this kind of as Brazil, Russia and India, that carmakers have targeted for income growth. Volkswagen is also working to increase U.S. income at its major brand, which has lagged behind competitors’; development in that market.

New SUVs

Designs that Volkswagen is bringing out via 2015 contain a new version of the mid-sized VW Passat sedan, variants for the Audi A4 line, a restyled Audi Q7 SUV, the Porsche Macan compact SUV and a plug-in hybrid edition of the greater Porsche Cayenne SUV, the company mentioned today.

Revenue last yr at the VW passenger-automobile brand fell 21 percent to 2.89 billion euros, the business mentioned right now. Porsche earnings almost tripled to 2.58 billion euros from 943 million euros. Audi reported on March eleven that working revenue last yr declined 6 percent to 5.03 billion euros.

VW, which published group earnings in February, reiterated that operating revenue will sum to 6 percent to 6 % of sales for 2014, in contrast with 6 percent last year. Revenue is expected to “move inside of a assortment” of 3 %, even though vehicle income will rise “moderately.”

Paul McVeigh contributed to this report

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