Volkswagen Aktiengesellschaft has exceeded the expectations
The largest car maker in Europe, Volkswagen Group, has exceeded the expectations of many analysts and reported a rise in net profits of 18%.
Volkswagen Group has now edged out General Motors to take over the slot of second largest car maker in the world and they are focussing their efforts on toppling Toyota, currently the largest global car maker. VW Group sales totalled 9.73 million vehicles compared to sales at General Motors of 9.71 million vehicles whereas Toyota sales were 9.98 million vehicles, so it was a close call for second and third places with a lot of hard work for any company intending to catch up and overtake Toyota.
The VW Group fleet is large and includes VW, Audi, Skoda, Porsche, Bentley, Lamborghini and also trucks Scania and MAN. The German giant has found that it has been the more expensive, luxury brand names that have sold far better than the less pricey, lower end models, so much so that the profit made on the high end vehicles has actually offset expenditure on expansion and research and development.
VW has, along with other car makers, been struggling in Europe for some time – although this trend is now turning – and US sales have even shown a decline. This remarkable growth has mainly been fuelled in the Chinese market, Prof. Dr. Jochem Heizmann, Member of the Board of Management of Volkswagen Aktiengesellschaft and President and CEO Volkswagen Group China said “We have made a good start this year with double-digit growth in the first quarter. Volkswagen Group China is fully committed to achieving the highest customer satisfaction in China. We will continue to set the standard for the Chinese automotive industry as we deliver a diverse range of innovative products and reliable services, expand capacity, and commit to greater sustainability in this fast growing market.” Prof. Dr. Heizmann also said “As part of our investment of more than 18 billion Euros in the Chinese market from 2014 to 2018, Volkswagen Group China and its joint-venture partners recently signed joint declarations to closely cooperate in the fields of new energy efficient models, green technologies, and environment-friendly plants,” he added “We see new growth coming from third- and fourth-tier cities, as well as the still strong demand for individual mobility. We will reach new heights in this market and responsibly drive forward the sustainable development of China’s auto industry.”
Despite these impressive figures VW Group remain cautious about the future, a statement from the company said “Challenges for the Volkswagen group will come from the difficult market environment and fierce competition, as well as interest rate and exchange rate volatility and fluctuations in raw materials prices”.
Special Thanks Michael Gil for providing the image