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VW's 60-model assault in 2013

2013-04-30 11:20

A SALES BOON FOR VW: Porsche helped parent company VW offset its profit drop in 2013. The german automaker still believes it can claim the No.1 automaker spot by 2018.

DETROIT, Michigan - Volkswagen said the addition of Porsche to its portfolio partly offset a drop in first-quarter profits caused by a recession in the German automaker's home region.

Audi retained its position as VW's largest earnings contributor with R11-billion in 2013 first-quarter earnings or 56% of the group total compared to 45% during the same period in 2012.

VW profit amounted to R6.9-billion, falling 9% to 25% of the total. It reports that profit would about equal the R135-billion posted in 2012.


Porsche, which was integrated into VW in August 2012, generated 24% of its parent-company earnings.

The European auto market's sixth consecutive recession is holding back growth at VW, which had planned to overtake automotive industry leaders Toyota and General Motors by 2018.

VW is working to counter the decline by rolling out 60 new and updated models in 2013, including its new Golf, Audi A3 compact and Skoda Octavia. The automaker also hopes to tap into expanding markets.

The automaker said" "We expect the Volkswagen group will outperform the market as a whole in a challenging environment."

VW is targeting higher sales and revenue in 2013 to help weather the industry-wide slowdown in Europe where demand for vehicles is heading for a 20-year low.


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