Volk­swa­gen an­nual de­liv­er­ies in 2010 to ex­ceed seven mil­lion cars

The Pak Banker - - Company& -

BER­LIN: Volk­swa­gen AG, Europe's largest car­maker, said an­nual de­liv­er­ies in 2010 will ex­ceed 7 mil­lion for the first time as sales in China surge.

VW's 11-month de­liv­er­ies in the world's largest car mar­ket ad­vanced 38 per­cent to 1.82 mil­lion ve­hi­cles, ac­count­ing for 28 per­cent of global sales, the Wolfs­burg, Ger­many-based com­pany said in a state­ment to­day.

Chief Ex­ec­u­tive Of­fi­cer Martin Win­terkorn is count­ing on China, VW's largest mar­ket, to sur­pass Toy­ota Mo­tor Corp. as the world's biggest car­maker by 2018. Pas­sen­ger­car de­liv­er­ies in China surged 29 per­cent in Novem­ber to a record 1.34 mil­lion, the China Au­to­mo­bile In­dus­try As­so­ci­a­tion said yes­ter­day.

"Over­all prospects for China con­tinue to look good," said Alek­sej Wun­rau, an an­a­lyst at BHF-Bank AG in Frank­furt who has an "over­weight" rat­ing on the stock and fore­casts an in­dus­try­wide sales gain of 12 per­cent in China next year. "VW will again be in for dou­ble-digit growth."

Volk­swa­gen's pre­ferred shares in­creased as much as 4.20 eu­ros, or 3.4 per­cent, to 128.40 eu­ros and traded up 2.3 per­cent as of 1:32 p.m. in Frank­furt. The stock has gained 95 per­cent this year, valu­ing the Ger­man car­maker at 55.2 bil­lion eu­ros ($73.2 bil­lion).

Volk­swa­gen's nine-month op­er­at­ing profit in China more than dou­bled to 1.32 bil­lion eu­ros. VW, the first over­seas car­maker to en­ter China three decades ago, will spend 10.6 bil­lion eu­ros in the coun­try through 2015 as part of an ex­pan­sion to add two fac­to­ries and dou­ble pro­duc­tion to 3 mil­lion cars an­nu­ally. VW cur­rently has nine Chi­nese fac­to­ries. Audi, the lux­ury leader in China, in­creased sales through Novem­ber in the coun­try 50 per­cent to 139,900 ve­hi­cles on de­mand for an ex­tended ver­sion on the A6 sedan. Czech unit Skoda posted 56 per­cent Chi­nese growth to 167,000 cars.

De­liv­er­ies world­wide at VW group brands in­creased to 617,000 ve­hi­cles in Novem­ber, VW said to­day. Eleven-month sales ad­vanced 13 per­cent to 6.59 mil­lion.

"Volk­swa­gen is ben­e­fit­ing dis­pro­por­tion­ally from the up­turn in most ma­jor au­to­mo­bile mar­kets," VW sales chief Chris­tian Klin­gler said in the state­ment. "We will be well above last year's level and an­tic­i­pate an­nual de­liv­er­ies of more than 7 mil­lion ve­hi­cles for the first time."

Stim­u­lus mea­sures in China in­clud­ing a con­sump­tion-tax re­bate for smaller ve­hi­cles, sub­si­dies for ru­ral car-buy­ers and in­cen­tives to trade in older mod­els are due to ex­pire at the end of the De­cem­ber. China's auto-in­dus­try lobby said yes­ter­day the in­cen­tives will likely ex­pire as planned this year.

VW hasn't greatly ben­e­fited from the pro­gram be­cause the Ger­man man­u­fac­turer's larger mod­els don't qual­ify for tax re­bates, which are fo­cused on smaller cars, Wun­rau said.

"I can't see how this pol­icy is go­ing to hurt VW greatly, they've only drawn mar­ginal ben­e­fits from those mea­sures," he said. More­over, the Volk­swa­gen Group is re­align­ing its man­age­ment struc­ture in Rus­sia hav­ing com­pleted the devel­op­ment phase at the Kaluga plant and suc­cess­fully es­tab­lished a sales net­work. Mar­cus Osegow­itsch ( 43), Man­ag­ing Di­rec­tor Sales, takes over as Gen­eral Di­rec­tor of VW Group Rus from Di­et­mar Korzekwa (60), who re­tires on Jan­uary 1. Dr. Josef Baumert (45) be­comes plant man­ager in Kaluga. Henry Mehn­ert (58) takes charge of hu­man re­sources from Fe­bru­ary 1. He suc­ceeds Jaroslav Hole­cek (54), who will as­sume new re­spon­si­bil­i­ties within the Group.

Mar­cus Osegow­itsch held var­i­ous po­si­tions at Ac­cen­ture from 1996 to 2003, lat­terly as man­ag­ing di­rec­tor and man­ag­ing part­ner. -PB News

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