Europe’s largest automaker, Volkswagen AG, has reported lower than expected profits for the third quarter due to an 81 percent decline in operating profits. VW maintains full-year earnings will drop year over year.
VW reported a drop to $409.7 million in operating profit for the third-quarter. This reported drop puts VW’s earnings far below the expected number released earlier this year by a team of 17 analysts polled by Reuters.
A report which outlined the causes for the drop said, “The group’s sales revenue in 2009 will be lower than in the previous year in particular because of weaker volume sales.” The report went on to list other causes such as refinancing costs and severe losses from Spanish brand Seat and the ultra-luxury brand Bentley.
Overall, net cash flow remained strong for the first three quarters at 5.1 billion euros. Through September net liquidity has been lifted to 13.4 billion euros.
10/30, 4:21 AM
posted by:
AutoCritical
Compared to other groups, think they have still come out quite well. No surprises…
10/30, 5:12 AM
posted by:
scratchy
Seat needs better marketing.
10/30, 5:19 AM
posted by:
fordman
Hey everbody,it’s a new day but one thing is still the same,Ford SUCKS!
10/30, 5:45 AM
posted by:
A4
I’m going to beat you with a wet trout.
10/30, 7:34 AM
posted by:
carstuff
I really wish there was a moderator to take out some comments. Then again I think 80% of commentators here would be gone because the juvenile comments is why they come.
Anybody know a forum where intelligent conversations are held?
10/30, 7:35 AM
posted by:
carstuff
BUT the fact that many OEM’s are making profits or close to profits show the bottom is in the past. Capacity/overhead/manpower has been cut to match volumes.
10/30, 7:52 AM
posted by:
fordman
What’s up with the wet trout A4? carstuff wants the moderators to take out your comment.
10/30, 8:04 AM
posted by:
TDi5Power
@scratchy
You have to remember. VW bought companies like Seat and Skoda because of there home markets. There are built mainly to please the Spanish and the Czechs. The Czechs won’t buy a Passat but they will they’ll line up to buy a Superb; even though they are the exact same car. Niche markets like that don’t have to have marketing.
10/30, 9:35 AM
posted by:
A4
Yeah, carstuff, how about NPR? Wanna have a nappy?
10/30, 10:04 AM
posted by:
johnnycanuck
I’ve heard of a trouser trout….
I don’t know, there’s something fishy about this whole thread.
10/30, 10:30 AM
posted by:
reedfast
at least they’re making profits cough cough-toyota-cough cough.
10/30, 12:07 PM
posted by:
Smegley Wanxalot
Carstuff is like LWA – always wanting other people’s freedoms restricted or removed altogether.
I for one have no desire to see A4 beat his wet trout, or dry trout for that matter, but to keep things on the topic of VW if A4 beats his trout with a Polo mallet it would not Bug me in the least as long as I can listen to old Santana CDs. But given the lack of grunt in the standard VW motor it makes it difficult to gun it and Passat the stoplights.
10/30, 12:44 PM
posted by:
scratchy
@ TDi5Power , i see Seats and Skodas all over Europe , Skoda is considered to be the best European quality/price car and Seat are supposed to appeal to young people. but unlike French cars who have a lot of commercials made for young people, Seat’s commercials don’t hit the targeted audience , they are too serious and boring.
10/30, 1:30 PM
posted by:
Borat
Comparatively speaking missing a quarter to Blitzkrieg miscalculations does not sound that dramatic. So plans for world dominance will be postponed again, no big deal. Perhaps the next quarter Porsche will buy VW back. I do believe that to compete in US market VW needs better engineered cars (not designed). In China they are doing well and Europe has the same economic malaise we are. What amazing that Honda with its fugly cars and trucks made a profit, small but better then loss working with the same economic conditions.
10/30, 1:49 PM
posted by:
DenverGuy217
Smeg – you’re really quite the Kharmann aren’t you?
10/30, 2:00 PM
posted by:
johnnycanuck
Sounds like Smegley could use a holiday. Maybe he could Jetta way for the weekend.
10/30, 2:06 PM
posted by:
SomeGreek
scratchy is right. And the Superb is quite bigger than the Passat inside out. It also has different interior design.
10/30, 2:12 PM
posted by:
Smegley Wanxalot
Hey Johnny and Denver, unless you want me to CC carstuff’s moderators I suggest you quite Sharon heroin needles, go out togther on a Touran Beetle you drop. One thing’s for certain – you’ll never out Fox me here.
10/30, 2:29 PM
posted by:
johnnycanuck
Actually I think Smegley is constipated. He hasn’t been Touareg-ular lately.
10/30, 2:29 PM
posted by:
leftwingagenda
i am all for removing your freedoms, smeg, that’s true!
speaking of vw et al., i was looking at a local used A4 on craigslist…(http://stlouis.craigslist.org/cto/1440210515.html)…i’m a little worried about reliability and the 60k mile wear and tear costs, but i dig the rear seat heaters…that’s good stuff…he’d also have to drop the price to 14k…over 50% reduction in value, though, over ~5 years…quite a depreciation…i guess that’s normal these days, though…
10/30, 2:46 PM
posted by:
Smegley Wanxalot
LWA, A4 will undoubtedly have a different opinion but my concern would be engine reliability after about 80k miles (say 2 years out) and reliability overall with the AWD. Overall it looks like a decent package though. Given the paint description and all a drop in price is in order. Again, I would just be prepared for some decent repairs or somewhat costly maintenance soon. You mentioned I think once before interest in Mazda3’s, so I am assuming decent long-term reliability is a desire, and with the Audi it’s somwhat uncertain. The Audi is a great drive though, so you may want to make that trade.
10/30, 2:58 PM
posted by:
Smegley Wanxalot
Johnny, perhaps it is just your Phaeton life to Bora your wife’s orange Ranger rather
than bEos-tentacious and buy an A4 for yourself.
10/30, 3:17 PM
posted by:
johngalt
I’m about to turn around VW’s Spanish brand’s fortunes forever, with a new ad slogan. Are you ready? Wait for it… Wait for it… Here it comes…
“There’s a Seat for Every Ass!”
10/30, 4:35 PM
posted by:
leftwingagenda
yeah, smeg, i hear ya…it seems most craigslist cars appear to be sold at the “just about to hit a big maintenance milestone” time point…here’s another example: http://stlouis.craigslist.org/cto/1441857056.html this 330ci may be late for the 60k inspection, and due for water pump/radiator/power steering pump replacement, or an alternator/battery combo (or all of the above)…e46s seem to have well known failure points (but it’s better to know in advance, right?)…
i could also ditch the germans and get an old wrangler too…that’s option #3 right now, but TJs have their own set of known problems…i’m basically trying to talk myself out of getting into a 25k loan for a MS3…
10/31, 7:43 PM
posted by:
A4
Smegley, I’m not an Audi humper like NMOFGM and I don’t say they have the best reliability ever or any bull**** like that. Have you ever read anything I’ve ever said? I am very unbiased. In fact, my A4 snapped its timing belt at 82,000 miles causing about $6,000 in damage. I would also be wary of any Audi or Volkswagen from the last 10 years with a turbocharged engine. That’s the reason I ALWAYS have a warranty now. Hell my 2006 GLI just about crapped a turbo around 49,000 miles and I had that swapped right out. I may be a VWAG guy through and through, but I’m not a biased piece of sh!t. Show me a little respect, damn.