Remember Me
forgot your password?

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

Europe’s largest automaker Volkswagen AG is hoping to obtain break-even for its North American market by 2009 or earliest that is according to Volkswagen’s Chief Labor Representative Bernd Osterloh in an interview with Dow Jones Newswires last Friday.

Osterloh was quoted saying, "I hope this is achieved." He also admitted that it’s going to be hard target to achieve. He further added that in order to reach such goal there should be an increase in productivity and at the same time there should be a reduction in the purchasing costs. He also suggest for the purchasing of parts locally.

Mr. Osterloh has said that the North America would become the central market for the company in the coming years. And in accordance to such plan, Europe’s largest automaker and producer of Volkswagen bus parts , Volkswagen has already sent its best man for the North American market, Stefan Jacoby, who would assume the position of Chief Executive of Volkswagen of America starting this coming September 1, 2007.

Mr. Osterloh said that he is not yet aware whether production would resume in the United States with the construction of the new factory. But one thing is for sure that before the Wolfsburg-based automaker gives out the go signal, there would be a study first on the capacity utilization in Mexico.

Mr. Osterloh also explained that it is important for the company to produce car models for the US market if it wants to produce sales volume. He said models that should be made must be similar to the size of the Passat or the Jetta. And if in case the plan really do pushed through then models that are especially designed for the US market could be officially launched before 2010.

Volkswagen Second-Quarter Profit Increased

In other news, Volkswagen has recently reported that its second quarter profit increased by 16 percent attributed to new models of both the Skoda and Audi units. The German automaker has also obtained a rise in net income that closes to 1 billion euros or $1.38 billion from previous 859 million euros in the year 2006 that is according to the median estimate of 11 analysts that takes part of the survey conducted by Bloomberg News.

Aside from the 11 analysts there were also banks that participated in the survey namely Bankhauz Metzler, M.M. Warburg, Societe Generale, JPMorgan, Morgan Stanley, Unicredit, UBS, DZ Bank, Bankhaus Lampe, ABN Amro and Exane BNP Paribas.

Rain Stockton

Rain Stockton is an engineer by profession. He is a motorsports fanatic, especially F1 and NASCAR. He seldom fails to attend major car racing events. A frustrated race car driver, he spends some of his free time working in one of the largest automotive shops in Indianapolis.

Rate this Article: 0 / 5 stars - 0 vote(s)
Print Email Re-Publish

Add new Comment



Captcha

  • Latest Automotive Articles
  • More from Rain Stockton

Tips on Driving in Europe

By: Michiel Van Kets | 05/01/2010
Plenty of people like to drive their own car when travelling through Europe and if you are coming from the UK it is quite easy these days to get there in just a few hours. If you are thinking of taking your car abroad then make sure you are prepared. Check out the FCO website, it has lots of travel advice by country, you’ll also need to ensure your insurance covers you and know what to do if your car should break down.

Tips on Driving in Europe

By: Michiel Van Kets | 05/01/2010
Plenty of people like to drive their own car when travelling through Europe and if you are coming from the UK it is quite easy these days to get there in just a few hours. If you are thinking of taking your car abroad then make sure you are prepared. Check out the FCO website, it has lots of travel advice by country, you’ll also need to ensure your insurance covers you and know what to do if your car should break down.

Headlight Restoration

By: Denny Burks | 05/01/2010
Headlight Restoration Headlights with the intention of be inflicted with lost clarity due the outside elements can be restored to the factory advent and get on to night driving safer. Any lone can sort out it with a little know how and calculate. Car headlights now and again be converted into gray and a reduced amount of effectual than they must be. This not single makes your vehicle look a reduced amount of striking, but it can furthermore create a treacherous circumstances as dri...

Bose – the best of the best

By: Andre Hansen | 05/01/2010
If you are looking for sound quality, then Bose is the right equipment for you. You won't regret reading this article either as it gives you a little background of Bose.

Car Insurance Policies That Fit Your Needs

By: Adriana N. | 05/01/2010
Because it is the law to have car insurance, it is important to purchase a policy that fits your need. Some policies can be expensive as it may include coverage that you do not need. There are various types of insurance policies that you should be aware of before you...

Tips to Buy Automotive Parts

By: yanary | 05/01/2010
Choosing appropriate auto parts for your car is as important as buying the car itself. A wrong decision can lead to a more expensive product or even worst, accidents can happen when faulty auto parts are purchased. But a good decision will definitely give best results. Let us examine some essential things that a buyer or car owner should consider when purchasing automotive parts either new or slightly used.

The Benefits of Owning Motorbikes

By: Mel C | 05/01/2010
Motorbikes are a cost effective way to get from one place to another, but they can also be a whole lot of fun. Not only are you doing your bit to conserve fossil fuels when you choose motorbikes over cars, you are creating less congestion on the road.

In Texas, Defensive Driving Skills Can Save Lives

By: Jeff Paul | 05/01/2010
For motorists in Texas, defensive driving skills can save lives. Texas has a rough terrain, the highest speed limits and a heavily traversed highway system that can pose challenges to drivers on the road.

What's Up With Volkswagen?

By: Rain Stockton | 26/07/2007 | Automotive
Europe’s largest automaker, Volkswagen has recently reported that they have obtained an increase in the second-quarter profit by 16 percent attributed to new models from brands Skoda and Audi.

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

By: Rain Stockton | 26/07/2007 | Automotive
Europe’s largest automaker Volkswagen AG is hoping to obtain break-even for its North American market by 2009 or earliest.

Vw's Touran Perfect for Huge Families

By: Rain Stockton | 26/07/2007 | Automotive
Having a huge family doesn’t have to be a drag especially when traveling. Volkswagen is offering an MPV that is just perfect for big families. The Volkswagen Touran is a compact MPV which is within the range of VW Sharan and the Caravelle.

Proton's Shares Increase as Its Deal With Volkswagen Near Conclusion

By: Rain Stockton | 26/07/2007 | Automotive
The shares of the troubled Malaysian carmaker Proton has increased slightly after reports has come out that its deal with Europe’s largest automaker and is getting closer to a deal.

Volkswagen Obtained All-time Record Sales for 1st Half of 2007

By: Rain Stockton | 26/07/2007 | Automotive
Europe’s largest automaker has been able to deliver around 1.8 million vehicles in the first half of this year to customers around the globe.

Ford Still Weighing the Consequences of Selling Volvo

By: Rain Stockton | 26/07/2007 | Cars
Ford has reiterated time and again that it’s not yet in talks with any prospective buyers moreover sell its Swedish-based subsidiary but with all of its assets pledged to creditors it’s not going to be surprising if one day it just decided to finally consider selling Volvo.

Volvo Strengthening Its Foothold in India

By: Rain Stockton | 26/07/2007 | Cars
Despite the circulating news that Ford is likely to sell its Swedish-based subsidiary, Volvo on the other hand just doesn’t want to be affected by it. As a fact, Volvo Car Corporation has recently appointed three dealers in India in preparation of its already delayed launching in one of the world’s the fastest growing market.

Polo Bluemotion Now Available

By: Rain Stockton | 26/07/2007 | Automotive
Now available for ordering ahead of its arrival in the UK in October is Volkswagen’s Polo BlueMotion, which promises excellent fuel efficiency and carbon dioxide emissions of just 99 g/km.

Submit Your Articles Free: Signup
Article Categories




Use of this web site constitutes acceptance of the Terms Of Use and Privacy Policy | User published content is licensed under a Creative Commons License.
Copyright © 2005-2008 Free Articles by ArticlesBase.com, All rights reserved. (0.23, 1, w2)