Brazil and emerging countries push VW sales up
Valor Econômico - 03/14/2008
With a record production of 796.9 thousand vehicles, from which 537.9 thousand were sold in Brazil, the Volkswagen group in Brazil, the largest car maker of the country, registered in 2007 growth of 31.3% in relation to 2006 and, together with the operations in the other countries that form the BRIC block (Brazil, Russia, India, and China) helped the good international results presented by the German company yesterday. All over the world, the company registered sales of 6.2 million units as a whole, with revenues of 108.9 billion euros, 3.8% above the revenues from the previous year. The profit before taxes, of 6.5 billion euros, exceeded the estimates. By giving the details of the financial results yesterday, the international president of the Volkswagen group, Martin Winterkorn, revealed that the company intends to sell 8 million vehicles in 2011, which will represent growth of 30% in comparison to the total from last year. Until then, the company plans on launching 20 new models, including vans, pickup trucks, and SUVs. The largest car maker of Europe plans to build its first plant in the United States, a market where the great majority of the European makers has little participation. Skoda, the Volks group division in the Czech Republic, announced profit increase of 44% last year. The contribution of this division for the group has been increasing since Volks acquired it in 2001. The maker does not reveal the financial results in Brazil, where its third largest operation is located. Skoda has been successful with models specifically intended for the Eastern European market and the Brazilian branch may stand out even more this year, when a new family of compact cars, entirely developed in the country, will be launched. The strategy confirms the declaration of the international president of the German group. Yesterday Winterkorn said that the days when a car was made for the whole world are "dead and buried". He is putting his chips in vehicles developed for the United States, China, and India, as part of a strategy outlined to help the group to face the international power of the Japanese maker Toyota.