It’s that time of the year where car brands announce their third quarterly profits. Volkswagen has clearly made tremendous progress in their bid to overtake Toyota as the world’s largest mass producer of cars sooner than expected.
Already Europe’s largest manufacturer, the German automotive giants are doing better than many experts could have expected.
A lot of the success is down to the sales of sport utility vehicles from Audi and Volkswagen, which has seen a 46% increase in demand. The production of the Audi Q5 in Germany continued throughout scheduled summer holidays as demand was heavily increased. Audi’s Slovakian factory extended the production schedule of the Audi Q7 SUV too. The Volkswagen Tiguan was also a car that had its production level increased too.
Frank Schowpe who is an analyst for NordLB highlighted how stable Volkswagen is at this current time. He was quoted to have said “VW’s business remains very solid. They’re headed for a massive profit this year. The good performance should continue through the first half of 2012.” He also recommended purchasing Volkswagen’s stock. Shares in the company are said to have risen by the highest level in over 6 years.
Martin Wintercorn who is the Chairman of the Board of Management released a statement praising the company’s strategy. He said “Our strong business performance shows the strength and stability of our strategy. In light of the current economic uncertainties, we are continuing to monitor developments in the global automotive markets extremely closely.”
Volkswagen profits soared with 6 million vehicles sold between January and September of 2011. Last year during the same period 5.4 million units were sold.
However it’s all good news for Volkswagen at present. Their bitter dispute with Suzuki has been in the headlines recently, giving bad publicity towards the company. Volkswagen wants the feud to end amicably with a statement from the company reading “It is not currently possible to assess whether cooperation will be re-established. Volkswagen continues to see Suzuki as an attractive investment,”
Volkswagen profits appear to have done better than expected. Can the company overtake Toyota as the world’s number one car producer before 2018?