Volkswagen profits down 80 per cent in 2009
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Wolfsburg, Germany (dpa) - Europe′s biggest carmaker Volkswagen posted a 80-per-cent plunge in its 2009 profits on Thursday - but set out a cautiously optimistic outlook for 2010.
Speaking at the group′s annual press conference in the German city of Wolfsburg, VW chief Martin Winterkorn called 2009 "a real test for the entire automotive industry" with Asia′s fast-growing car markets helping to offset a drop in sales for the company in other parts of the world.
Amid signs that the recession is now in retreat, worldwide VW deliveries raced ahead by 27 per cent to 1.02 million in January and February this year.
"The Volkswagen group set a fast pace in the past year and we have no intention of slowing down in 2010," said Winterkorn.
VW plans to roll out a string of new models and updates this year to its stable of brands, which includes Audi, Bentley, Lamborghini, SEAT, Skodia as well as its flagship VW.
VW also has ambitions to emerge as the world′s number carmaker by 2018 replacing Japan′s Toyota group, which has been hit by a crisis resulting from questions about the safety of some of its vehicles.
But highlighting the difficulties faced by the auto sector last year, VW′s net profit plummeted to 960 million euros (1.3 billion dollars) in 2009 compared with 4.75 billion euros in 2008.
While sales revenue slipped by 7.6 per cent from 114 billion euros to 105.2 billion euros in 2009, total global deliveries in 2009 rose up by 1.3 per cent to 6.3 million vehicles helped along by 36.7-per- cent jump in deliveries to China.
Deliveries to VW′s key domestic German market bounded ahead by 17.6 per cent last year bolstered by the government′s so-called cash-for-clunkers′ incentive scheme aimed at encouraging vehicle owners to update their cars to models with improved environmental features.
Also underscoring the key role for Volkswagen played by the growing demand for cars in Asia, excluding VW′s operations in China would have meant that group unit sales would have dropped by 6.1 per cent.
VW acquired a 19.9-per-cent stake in Japanese auto group Suzuki at the start of the year.
"Volkswagen′s partnership with Suzuki will allow it to make a quantum leap in the mini-car segment and in the Asian growth markets", said Winterkorn.
Apart from the fallout for the car business from the global recession, 2009 represented a turbulent year for VW which acquired a 49.9-per-cent stake in luxury German sports carmaker Porsche AG as part of moves to integrate the two groups.
VW shares rose by 1.8 per cent to 64.87 euros in early trading in Frankfurt Thursday. dpa amc mt