| The first quarter results that Volkswagen has obtained | | | | real export powerhouse that can compete with |
| is exactly what Porsche Chief Executive Wendelin | | | | ToMoCo. Despite the huge revenues that Volkswagen |
| Wiedeking has expected it would be when he opted | | | | receives still the fact remains that its success is largely |
| to increase his controlling stake in Europe’s largest | | | | centered on Europe---Western and Easter Europe |
| automaker. The operating profit that | | | | comprised 62 percent of the total VW sales while only |
| Volkswagen---Europe’s largest automaker and | | | | 4 percent is derived from the giant US market. |
| manufacturer of top-of-the-line VW Beetle Part -- has | | | | Analysts say that if Volkswagen wants to take on |
| gained for the first three months of 2007 has increase | | | | Toyota it has to build serious sales muscle in the US |
| to 81 percent or $1.48 billion creating a 4.1 percent | | | | where it was only been able to sell 397,000 cars last |
| margin. The profit after tax of $1.0 billion has increased | | | | year. In order to penetrate the US market, Winterkorn |
| by 127 percent. | | | | is betting on new models that would include a van |
| The VW brand division was the dominating brand for | | | | scheduled for released in 2008. The VW CEO is |
| the first quarter sales drive but the star performers | | | | hoping that the van’s low cost and improved quality |
| were Audi and Skoda. The soaring sales of new | | | | will attract car buyers. CEO Winterkorn will also |
| models at the Czech-based Skoda have been able to | | | | formulate new marketing strategies to further boost |
| deliver an 8.5 percent operating margin---surpassing | | | | sales in the US. |
| even the premium auto maker BMW. Skoda’s car | | | | Improving Quality |
| sales increase by 15.5 percent in the first quarter | | | | The new CEO of Volkswagen is a quality-obsessed |
| resulting from its sales of Octavia compact and | | | | engineer that aims to sow in Volkswagen the type of |
| Roomster station wagon. | | | | product planning, manufacturing, component sharing as |
| Volkswagen’s premium luxury unit Audi has also | | | | well as quality expertise that he has previously instilled |
| continued to be a strong force for Volkswagen | | | | at Audi during his tenure as CEO. Global Insight’s |
| recording 9.4 percent for its global sales or $11.8 billion | | | | Ryard said, "There will be a more coherent approach, |
| fueled by the success of some of its models like the | | | | making platforms as flexible as possible and designing |
| new Audi TT roadster and the Q7 SUV. First quarter | | | | them so they can be built on every conveyor belt. It's a |
| profit at Audi has increased by 16 percent to $545 | | | | bit like the manufacturing strategy at Toyota." |
| million. | | | | The new CEO would like to change the management |
| Audi and Skoda combined comprised 69 percent of | | | | style that the company has been used to. It can be |
| Volkswagen’s automotive profit that is despite | | | | remembered that due to the poor planning at |
| being dwarfed by sales of Volkswagen brand vehicles. | | | | Volkswagen in that past has resulted to pileups of |
| The Volkswagen brand was able to record $525 | | | | new products that were introduced in a short span of |
| million or a 21 percent operating margin which is a | | | | time and puncturing sales. |
| tremendous increase as compared to the $66 million | | | | Volkswagen needs also to redouble its efforts in China |
| loss that it has gained in the first quarter of 2006. | | | | and other Asian markets, where car industry is |
| Volkswagen against the Toyota | | | | booming since the big US and European markets are |
| Despite the remarkable first quarter results obtain by | | | | beginning to stagnate. Volkswagen ranks number two |
| Volkswagen it still faces big challenges especially since | | | | in China with General Motors taking the number one |
| the controlling shareholder, Porsche’s Wiedeking | | | | spot. Last year VW has been able to sell 711,186 cars |
| wants the German giant to outperform the presently | | | | in China up by 24.3 percent. |
| world number one automaker, Toyota. For | | | | Volkswagen’s shares have increased by 35.5 |
| Volkswagen, this would mean redoubling cost-cutting | | | | percent sustained by the Porsche’s desire in raising |
| efforts, increasing production efficiency, boosting parts | | | | its shares in Volkswagen. VW shares rose by 0.4 |
| sharing, and above all fix its money-losing US operation. | | | | percent last May 2 to €111.75 ($152) on the Frankfurt |
| As Winterkorn continues revamping Volkswagen his | | | | exchange. |
| additional task now would be the development of a | | | | |