Volkswagen to Break-even in 2009 and Reports Second-quarter Profit Increased

Europe’s largest automaker Volkswagen AG isgives out the go signal, there would be a study first on
hoping to obtain break-even for its North Americanthe capacity utilization in Mexico.
market by 2009 or earliest that is according toMr. Osterloh also explained that it is important for the
Volkswagen’s Chief Labor Representative Berndcompany to produce car models for the US market if
Osterloh in an interview with Dow Jones Newswiresit wants to produce sales volume. He said models that
last Friday.should be made must be similar to the size of the
Osterloh was quoted saying, "I hope this is achieved."Passat or the Jetta. And if in case the plan really do
He also admitted that it’s going to be hard target topushed through then models that are especially
achieve. He further added that in order to reach suchdesigned for the US market could be officially launched
goal there should be an increase in productivity and atbefore 2010.
the same time there should be a reduction in theVolkswagen Second-Quarter Profit Increased
purchasing costs. He also suggest for the purchasingIn other news, Volkswagen has recently reported that
of parts locally.its second quarter profit increased by 16 percent
Mr. Osterloh has said that the North America wouldattributed to new models of both the Skoda and Audi
become the central market for the company in theunits. The German automaker has also obtained a rise
coming years. And in accordance to such plan,in net income that closes to 1 billion euros or $1.38 billion
Europe’s largest automaker and producer offrom previous 859 million euros in the year 2006 that is
Volkswagen bus parts , Volkswagen has already sentaccording to the median estimate of 11 analysts that
its best man for the North American market, Stefantakes part of the survey conducted by Bloomberg
Jacoby, who would assume the position of ChiefNews.
Executive of Volkswagen of America starting thisAside from the 11 analysts there were also banks that
coming September 1, 2007.participated in the survey namely Bankhauz Metzler,
Mr. Osterloh said that he is not yet aware whetherM.M. Warburg, Societe Generale, JPMorgan, Morgan
production would resume in the United States with theStanley, Unicredit, UBS, DZ Bank, Bankhaus Lampe,
construction of the new factory. But one thing is forABN Amro and Exane BNP Paribas.
sure that before the Wolfsburg-based automaker