03/Sep/2014 - Last News Update: 01:58

VW profits more than triple on strong demand

Category: Business

Published: 27th Oct 2011 10:29:26

Volkswagen (VW) has said its net profit more than tripled in the third quarter as demand surged for its vehicles.

Nine months into the year, VW has already exceeded its annual profit for the whole of 2010.

Net profits jumped to 7.2bn euros ($10.1bn; £6.3bn), from 2.2bn euros in the same period last year.

But German rival Daimler said its net profit fell 16% in the third quarter to 1.36bn euros as the troubled European economy hurt Mercedes-Benz.

Pre-tax profits at Mercedes-Benz fell 15% percent to 1.1bn euros.

Daimler said in Western Europe, "there is little sign of any significant growth impetus".

'Strained debt situation'

VW said its global share of the car market climbed to 12.4%. It's shares rose 6.5% in early trading in Frankfurt.

With economic prospects in Europe looking subdued, the carmaker expects most of its demand to come from Central and Eastern Europe, as well as China and India.

"The strained debt situation in certain eurozone countries and the end of subsidy programmes will have a negative impact on demand for new vehicles in many Western European markets in the fourth quarter," VW warned.

Vehicle deliveries across VW jumped 14% to 6.2 million in the first nine months of the year.

The company sold 3.3 million Volkswagen-branded cars and 1.1 million Audi vehicles.

British luxury carmaker Bentley sold 5,000 cars, with its previous loss of 145m euros shrinking to 6m euros.

BBC News External Link Show Citation

Latest News

Harvard Citation

BBC News, 2011. VW profits more than triple on strong demand [Online] (Updated 27th Oct 2011)
Available at: http://www.ukwirednews.com/news/197313/VW-profits-more-than-triple-on-strong-demand [Accessed 3rd Sep 2014]

News In Other Categories

  • Credit Suisse investigating two traders over misconduct

    Swiss bank Credit Suisse is investigating two of its traders in London over allegations of misconduct.
  • Bristol Academy extends reach overseas with first foreign students

    With the doors to its brand new £1million training centre officially open, one of the UK's leading apprentice training providers, Bristol based S&B Automotive Academy, is showcasing its world-class facilities by launching a series of foreign student exchanges for the first time in its 41-year history. To get a flavour of what life is like as an apprentice in the UK, the Academy hosted 16 apprentice engineers and bus drivers from the G9 Automotive College in Hamburg, Germany, as part of a Europe-wide vocational training initiative called the ‘Leonardo Programme’ with support from the European Social Fund. In a reciprocal arrangement, S&B will be sending nine apprentices to Germany during February 2012 so that they can get an appreciation of life in the automotive industry on the Continent. A further three German exchange groups are being planned for next year. Designed to assist the development of vocational skills and training across Europe, including work placements for trainees, the Leonardo Programme has a budget of €1.75bn, which is helping to encourage UK organisations to work with their counterparts abroad. In what is expected to be another challenging year for employers in the UK automotive sector, S&B’s Chief Executive, Jon Winter, claims that the exchange initiative will bring many benefits to the Academy and its apprentices: “In a world of global automotive brands, it’s important for our learners to understand the international context of the industry they have chosen to make their career. This new exchange programme will enable apprentices and Academy staff alike to achieve a better understanding of the challenges and opportunities within the automotive arena in Europe. With the Academy’s influence also extending to the USA and Asia, there’s every possibility that this initiative could move further afield in the future.” Continued Winter: “The need for skilled technicians across the world is on the increase and we actively encourage our apprentices to look at broader horizons during their training. Many of them have already learned the phrase ‘Vorsprung durch Gelehrtheit’, quite simply, ‘Advancement through learning.” In the 2010/11 academic year, S&B doubled the number of successful Apprenticeships over the previous year with some 350 apprentices graduating from the Academy. At the same time, achievement levels reached an all-time high with an overall success rate of 85%. For those learners on the Advanced Apprenticeship three-year programme, success rates were even higher, at over 98%. PHOTO CAPTION: As part of their exchange visit, S&B Automotive Academy arranged for the German apprentices to visit Hampshire bus operator, Bluestar, at its Barton Park depot. The students are pictured with S&B’s Andy West (3rd right) and Steve Prewett, Bluestar’s Area Engineering Manager (2nd right). Ends http://www.sandbaa.com
  • Toronto Film Festival 2014: Ones to watch

    The Toronto International Film Festival is set to kick off on Thursday - one of the largest and most prestigious events in the annual film festival calendar.
  • Arthur Andersen name revived more than a decade after collapse

    US auditor Arthur Andersen is having its name resurrected more than a decade after it collapsed because of the Enron accounting scandal.
  • £7m claim over leaking Dartington 'eco-school'

    A £7m claim has been launched against two firms involved in the design and building of an "eco-school" that closed after it developed leaks.
  • Nato summit: £3.5bn armoured vehicle deal to be signed

    A £3.5bn deal for nearly 600 new armoured vehicles will be signed in Caerphilly county ahead of the Nato summit.