VW profits up after last year’s slump

Volkswagen has posted a profit of €386 million for the first quarter of the year, a much better result than the €49 million loss it made last year over the same period. Analysts cite the introduction of new models, such as the Eos and CrossGolf, as well as an increase in demand from South American and Asian markets as the reason behind VW’s turn around. But everyone knows, the appointment of its new chief Martin Winterkorn had a major effect on profit levels.

The VW brand wasn’t VW Group's only label to post strong results, “all group brands improved their operating profit" said its CFO Dieter Poetsch. Sister brand Audi also achieved remarkable results. Audi’s profits rose 16% to €401 million, up from the €345 million profit posted last year. Skoda’s profit grew by 20%, up to €172 million from €143 million last year and though Seat still posted a loss, its €11 million deficit was less severe than the €32 million loss it made last year.

VW remains as the group’s largest player with global vehicles sales rising by 7.9% for the quarter, up to 1.47 million units, and Poetsch is confident that VW will eclipse its 2006 sales tally of €104.9 billion thanks mostly to increasing demand from China and Eastern Europe.