Volkswagen announced on Wednesday that its sales and profits increased sharply during the first quarter of 2008. VW — Europe’s largest automaker by volume — earned $1.5 billion during the first three months of the year, up from $1.1 billion during the same time period a year before.
According to The Detroit News, VW’s operating profits also saw significant gains, jumping 21 percent to $2 billion.
Overall, the VW group — which includes VW, Audi, Lamborghini, Bentley, Bugatti, Seat and Skoda — saw worldwide sales increase 6.9 percent, totaling 1.6 million vehicles. A breakdown by brand is expected to be released on April 30.
Volkswagen said earlier this week that it expects April sales to be up by 7 percent.
As with most automakers, VW is seeing the largest gains in Asia, Europe and South America.
04/23, 11:57 AM
posted by:
injunraiv
OK, so here’s 2 car companies that have had questionable quality lately show a sales increase. What’s up with that?
04/23, 12:02 PM
posted by:
iglesias294
ummm it’s pretty simple dude. They are making huge profits in markets where affordability and entry-level automobiles take precedence over luxury and quality. Asia and South America!
04/23, 12:25 PM
posted by:
LaCaLover
VAG has great product and more due soon with the new Polo, Golf VI, Seat Ibiza, Audi A3 and Q5, Skoda Superb and of course the magnificent Up!. I can’t wait to put an Up! on my drive.
04/23, 12:26 PM
posted by:
LaCaLover
injunraiv: the questionable quality is all in your mind. The reality is different and will be reflected in upcoming surveys.
04/23, 12:31 PM
posted by:
mayer_ray_nagin
CaCaLover = VW’s 1115.
04/23, 12:35 PM
posted by:
A4
you know why their profits have increased? because theyve started SKIMPING on their cars compared to 2 years ago. The 2006 GTI with package 2 came with FULL leather seating surfaces, full leather armrest, headlamp washers standard, little chrome strips in the trunk, and many other fine details one wouldnt particularly notice if they never knew. The 2008 GTI on the other hand comes with partial leather/leatherette seats, a more expensive option setup for the same stuff, no headlamp washers, no chrome strip, leatherette armrest, etc. Its the little details that matter, and yeah its saving them money while they still up the MSRP, but its stuff like that thatll make me go get a used 07 over a brand new one.
04/23, 12:35 PM
posted by:
injunraiv
LaCarLover – I’m not really one to run with these surveys, but I am surprised to find VW constantly down at the bottom with Kia/Hyundai. Maybe more than most, I know things change. But that’s where VW is right now, and where Toyota is headed. So why are their sales up today?
04/23, 12:43 PM
posted by:
LaCaLover
Injunraiv, VWs rock thats why
04/23, 12:44 PM
posted by:
LaCaLover
by the way it’s LA CA as in Los ANgeles California, and not La Car
04/23, 12:45 PM
posted by:
nagmashot
14 day old news..the VW numbers were presented by VW early April..
Volkswagen by brands 1. quartal 2008
VW ……….920,000 +8%
Skoda…… 173,000 +16%
Audi……… 251,000 +1.3%
Seat…….. 101,000 -7% (the spanish car market is down which is the main market for Seat)
VW commercial vehicles 123,000 +12%
The fastest growing market for Volkswagen are currently China +33% (268,000cars) in the first quartal. Followed by Brazil +25% (148,000) and Germany +2.6% (241,000).
For all who can´t understand a growing company with bad consumer reports.. ever thought how “reliable” consumer reports are?
04/23, 2:58 PM
posted by:
injunraiv
Yes, but many people live and die by the CR… Whether or not they’re correct.
04/23, 6:12 PM
posted by:
DeansterTJ
Sometimes I despise VW. They charge exorbitant amounts for cars that are quite pedestrian. Like the GTi retailing for $40,000 in Canada when fully loaded. 40k for a hatch? It’s a good car, but please **** off VAG.
Same goes for Audi. Same overpriced bull****. Nice cars, but not at those prices. Not with VAG’s legendary lack of quality backing them. It’s that sort of **** that kept me away from German cars for so long. Although I’m thinking of the Cayenne as my next car.
04/23, 7:35 PM
posted by:
autonut
nagmashot, I was in Madrid a year ago and two years ago. I could not help to notice that majority of cabs are Skoda and VW, bit not SEAT. I actually saw very few Seat cars on the streets and Spaniards have no affection for them at all.
I think the best money maker for VW is Skoda: quality is higher then VW and price is lower. It is produced by very industrious Checks vs. very backward Kurds and Turks in Germany at VW factories during 28 hours work week. Statistics that you provided supports my hypothesis.
04/23, 10:09 PM
posted by:
RLC
What happens when VW runs out of new markets to gouge and disappoint?
04/23, 10:23 PM
posted by:
johnnycanuck
So autonut, what you’re trying to say is that Spain is much like North America where even the locals aren’t rooting for the home team?
04/24, 12:52 AM
posted by:
nagmashot
@autonut
even if you don´t see many SEAT in spain it does not turn around the fact that it is the main market for the SEAT brand.
The largest money maker in the Volkswagen brand mix is with flying colors Audi… from the 6billion Euro Volkswagen win 2007, 2.9billion are from Audi..
Skoda is not better as VW, 95% of the components used in Skoda are exactly the same as in VW models, the engines tranny electronic stuff are build in the same plants stick on the same platfroms with different exterior look and different logo.
04/24, 1:23 PM
posted by:
xyunya
Granted that most of VW cars are using same nuts, bolts and even engines (that is were the economies of scale come from), but in some countries cars are screwed better then in others even with the same components.