VW Group reports surge in profits
The Volkswagen Passenger Cars brand sold 2.2 million vehicles (1.9 million) – an increase of 13.7% compared with H1 2010, with operating profit climbing to €2.1bn(€1.bn).
Audi’s unit sales improved by 15.3% year-on-year to 762,000 vehicles (660,000), while Skoda lifted sales by 21.3% to 362,000 vehicles (298,000). Operating profit rose to €412m (€22m), a rise of 81.5%.
SEAT had a mixed period: it increased unit sales by 1.0%, despite a slump in demand in the Spanish passenger cars market, for a total of 188,000 vehicles (186,000). The brand’s operating loss narrowed to €48m compared with the prior-year figure of €157m.
Volkswagen Financial Services lifted its operating profit by €191m year-on-year to €553m in the reporting period.
Hans Dieter Pötsch, cfo said: ‘We have recorded a further increase in profitability. The Volkswagen Group is benefiting from dynamic growth in almost all regions of the world. In addition to higher unit sales, amongst others, lower product costs contributed to the increase in profitability. In view of the global economic challenges, we are well advised to maintain our cost and investment discipline and to further improve our financial strength.’
The group confirmed its target of again increasing deliveries in the current year, although it believes the strained debt situation in certain eurozone countries and the end of subsidy programmes will have a negative impact on demand for new vehicles in many Western European countries.