VW: to increase sales in China and US, eyeing 2018 global target of 10 mil units

Audi A3 and VW Golf to introduce Modular Transverse Matrix (MQB) in 2012

2012/08/23

Summary

VW Group's sales by region (1H 2012) In its business plan, Strategy 2018, the Volkswagen Group announced that it will increase its annual sales volume to ten million vehicles as its mid-term goal. During the January to June period in 2012, the VW Group marked its highest sales of 4.55 million units, displaying the stability of its growth. However, sales in Western Europe declined by 1% suffering from the debt crisis in the region. With the expected decline in the latter half of the year in the German market, which has been doing well in the past years, VW is planning to aggressively expand its market in the U.S. by recommencing its local production for the first time in 20 years, and in China, which has grown to be its largest market.

 Decrease in profitability is also expected in the near future from severe cost competitions and higher demands for low-cost, compact vehicles. VW is planning to introduce a modular system strategy which uses common components across different classes and brands in order to streamline developments, lower costs, and attain more flexibility in its production. In 2012, it will introduce the Modular Transverse Matrix (MQB) to its main segment, transverse engine-powered vehicles, starting with the new Audi A3 and the VW Golf.

 Under its plan for vehicles with electric drive, VW will launch hybrid versions of the VW Jetta and the Audi A6 and A8, as well as an EV (electric vehicle) of the Audi R8 e-tron. In 2013, VW will launch the Golf EV built on MQB, along with a subcompact, the up! EV, and a commercial van, the Caddy EV.

 VW Group's revenue in the first half of 2012 was up 22.6% y/y to 95.4 billion euros, and its operating profit was up 6.7% to 6.5 billion euros. With a large number of models including the new Golf, waiting to be launched in the latter half of this year, the sales volume and the revenue for 2012 are expected to exceed the previous year. Operating profit is predicted to stay the same.


Related Reports: VW (Aug. 2011), VW in China (1) (Sep. 2011)/(2)(Oct. 2011)



Sales for the first half of 2012 increased by 10.3% to 4.55 million units; annual sales volume to exceed last year's 8.27 million units

 VW Group's sales volume in the first half of 2012 was up 10.3% from last year, marking its record high of 4.55 million units. The world-wide share of the passenger car segment increased from last year's 12.3% to 12.4%.

 By region, sales volumes in all areas increased with the exception of Western Europe, which fell 0.9% to 1,647K units. Among the regions which showed a huge increase, Central and Eastern Europe increased by 29.3% to 336K units; North America grew by 22.4% to 391K units; and China rose by 17.5% to 1,302K units. In Western Europe, the sales decreased in Southern European countries such as Italy and Spain, due to the European debt crisis.

 According to the outlook announced with its financial statement for the first half of 2012, the year-round sales volume will exceed 2011's 8.27 million, along with its revenue. However, operating profit is expected to stay the same.

VW Group's deliveries to customers by region (including trucks and buses)

(1,000 units)
2008 2009 2010 2011 Jan.-Jun.
2011
Jan.-Jun.
2012
Western Europe 2,989 2,918 2,903 3,168 1,662 1,647
Central and Eastern Europe 560 385 430 563 260 336
North America 503 468 550 668 319 391
South America 803 826 908 963 465 505
Asia-Pacific 148 150 221 316 152 182
China 1,024 1,401 1,925 2,260 1,107 1,302
Others 228 189 268 327 162 190
Worldwide 6,257 6,336 7,203 8,265 4,128 4,552

VW Group's deliveries to customers by country in Western Europe (excluding trucks and buses)

(1,000 units)
2010 2011 Jan.-Jun.
2011
Jan.-Jun.
2012
2,882 3,130 1,648 1,612
Western Europe Germany 1,035 1,153 581 606
United Kingdom 377 409 217 225
France 268 299 161 152
Italy 241 245 139 113
Spain 245 213 120 104

 

VW's outlook for 2012

 VW expects the demand for passenger cars and light commercial vehicles will continue to grow in the latter half of 2012. However, the growth rate is expected to slow down in comparison to the first half of this year. With the exception of Germany, which is expected to stay the same, the sales volume in Western Europe is likely to decrease. The sales volume growth rate in Central and Eastern Europe is expected to decline. VW's two strategically important markets, China and India, are expected to grow, but at a slower rate. The sales in the Americas are expected to increase.
 The demands for trucks and buses will show little or no growth in 2012 and the market may shrink compared to last year.
 With the launch of various new models, including VW's major model, the Golf, during the latter half of this year, the year-round sales for 2012 is expected to exceed previous year. The revenue is also expected to increase from last year with consolidation of MAN from November 2011. The operating profit is expected to maintain last year's level due to decreased profit from increased competitive tension and less consumer demands in the European market. In addition to the acquisition of MAN, performances by Porsche will also be consolidated from August 1, 2012, but it is expected to have minimal impact because of the high initial depreciation and amortization expense from purchase price allocation.

Note: the German Association of the Automotive Industry (VDA) estimates the automobile market in Germany at 3.1 million units for 2012 (3.17 million units for 2011), and foresees increasing price competition in the market during the latter half of 2012 from declined consumer demands. (Automotive News Europe 2012.7.26)

 

 



Strategy 2018 - achievements

Strategy 2018: goals and achievements

 In VW's business strategy, Strategy 2018, announced in 2007, VW has set its goal to become the world's automobile leader in terms of economy and ecology. VW reported that the VW Group is making steady progress towards the goal set to achieve in 2018, when it announced its 2011 financial statement. VW will continue to optimize its cost management, investment management, and production process.
2010 results 2011 results 2018 goals
VW Group sales volume ('000 units) 7,200 8,270 Over 10,000
VW Group return on sales before tax 7.1% 11.9% (Note) Over 8.0%
VW Group fleet CO2 emissions (EU27) 144g/km 137g/km Less than 120g/km
Automotive Division CAPEX to sales 5.0% 5.6% 6.0%
Automotive Division return on investment 13.5% 17.7% Over 16%

Note: The group return on sales before tax for 2011 is 7.8% if nonrecurring effect from the remeasurement of the Porsche put/call options are excluded.

 



The U.S. market: to sell one million vehicles in 2018 group-wide

The U.S. market: VW to sell 800K vehicles under VW brand and 200K under Audi brand in 2018

 In May 2011, Volkswagen started its production at the Chattanooga plant in Tennessee. This is the first time in 20 years since VW last produced its vehicles in the U.S. The German automaker is expanding its revenue in the U.S. by launching new U.S. models, making local procurement, and producing its vehicles locally. With the success of the new U.S. model, Passat, a larger version of the European model, and the new Beetle, launched in the fall of 2011, the sales volume for the first half of 2012 increased by 22.1% to 390K units. VW's goal is to sell 800K units under the VW brand (324K units for 2011) and 200K under the Audi brand (118K units for 2011) in 2018, acquiring 6% of the market share.

To achieve annual production volume of 180K units by adding 30K units to its production capacity at Chattanooga plant in 2013

 To cope with the success of the U.S version Passat, produced at the Chattanooga plant, VW hired an additional 1,000 employees to increase its production earlier in 2012. There are now a total of 3,300 employees working at this plant, working in three shifts, six days a week. The automaker is planning to increase plant's current annual production capacity of 150K units to 180K units by 2013.

The launching of the U.S. models

 VW is currently considering increasing several models optimized to the U.S. market under the VW brand (according to the news report in July 2012). The models under consideration are an SUV, which is smaller than the existing Tiguan, and another SUV with the size between the Tiguan and the Touareg. They will be manufactured in either the U.S. or Mexico.
 A diesel version of the Tiguan is also under VW's consideration due to an expected increase in demand for diesel cars in the U.S. Currently, diesel cars only account for 20% of the vehicles sold in the U.S., but VW expects to increase the share to 30% with the launch of the Tiguan diesel model.
 The automaker is also thinking of adding a high-end model to its lineup. The model under consideration is the second generation Phaeton, launched in 2010 in Europe. However, VW is taking extra caution in making this decision because the first-generation model had failed in the U.S. and the model was discontinued in 2006.

 

 



The Chinese market: to increase annual production capacity to three million units by 2013 or 2014

VW to increase its lineup in China to 75 models by 2015

 In 2011, VW Group exceeded the sales volume of two million units for the first time in China by selling 2.26 million units. The sales volume for the first half of 2012 was 1,302K units, up 17.5% from the previous year. The market share for the January to May period in 2012 was 20% with VW ranked at number one. VW plans to increase its lineup in China to 75 models (including 43 import models) by 2015.

VW to increase annual production capacity to three million units by 2013 or 2014 and to four million by 2018

 VW plans to increase its annual production capacity in China to three million units by 2013 or 2014 and to four million by 2018. FAW Volkswagen and Shanghai Volkswagen are currently producing more than 20 models under VW, Audi, and Skoda brands in China.
 VW will spend 14 billion euros for vehicle development and production capacity expansion between 2012 and 2016. According to Go West Strategy, VW will construct the Urumqi plant. In Go South Strategy, construction of plants in Yizheng (Yangzhou Province), Ningbo (Zhejiang Province), and Foshan (Guangdong Province) are planned.

Shanghai VW: Yizheng plant begins production; Ningbo and Urumqi plants under construction

Yizheng plant
in Yangzhou Province
(fifth vehicle plant)
 On July 26, 2012, Shanghai VW held a ceremony to celebrate the start of operations at its new fifth plant in Yizheng, Yangzhou Province. The plant's annual production capacity is 300K units. VW's new Polo will be the first model to be manufactured at this plant. Models under the Skoda brand are also expected to be produced in the future. This is an approximately ten billion RMB project. The plant will also include a technical testing center, a training facility, and an energy center on the site. This project will create 3,700 jobs.
Ningbo plant
in Zhejiang Province
(sixth vehicle plant)
 On January 7, 2012, Shanghai VW began construction of its sixth plant in Ningbo, Zhejiang Province with a total construction cost of 11.759 billion RMB. The plant will have an annual production capacity of 300K passenger cars and it is expected to start operations in 2014. The estimated number of employees for 2015 is several thousand.
Urumqi plant
(seventh vehicle plant)
 On April 23, 2012, VW agreed with SAIC to construct a new plant in Urumqi, Xinjiang Uyghur Autonomous Region, located in the western part of China. 170 million euros will be spent on this project. The plant is set to begin its operation at the end of 2014 with an annual passenger car production capacity of 50K units. VW places the rural area in Western China as an important region where demands for passenger cars will grow.
 Shanghai VW already has three vehicle plants with a total annual production capacity of 800K units set up in Shanghai, and one in Nanjing with 300K units. 2014 annual production capacity is estimated at 1,750K units once all three plants mentioned above become fully operational.

FAW-VW starts operation at the Chengdu plant; Foshan plant under construction

Extension of joint
venture agreement
 On April 23, 2012, VW agreed with FAW to extend their joint venture agreement for FAW-VW (established in 1991) for another 25 years.
Chengdu plant
in Sichuan Province
(third vehicle plant)
 The plant started its operation in October 2011. The first model produced at the plant was the new Sagitar. This plant has an annual production capacity of 350K units, and expects to achieve 450K units by the end of 2012.
Foshan plant
in Guangdong Province
(fourth vehicle plant)
 FAW-VW's first production site to be built in South China region. The constriction cost is 13.3 billion RMB. The construction began in April 2011 and operations are expected to start in August 2013. The annual production capacity for the first year is set at 300K units, expanding to 600K by 2015. The first model to be manufactured at this plant will be the new Golf built on MQB platform, followed by the Audi A3 Sedan/Sportback.
 FAW-VW already has two plants running in Changchun, Chilin Province with a total annual production capacity of 660K units. 2015 annual production capacity is estimated at 1,710K units once these two plants become fully operational.

VW to construct a transmission plant in Tianjin

 VW will construct a plant in Tianjin, its third transmission plant in China. VW already has two transmission plants in Shanghai and Dalian. The new plant will be the second site to produce dual clutch transmission DSGs (Direct-Shift Gearbox) in addition to the current Dalian plant. The initial annual production capacity is 900K. VW is planning to expand it to 1,350K units. The transmissions built at this plant will be installed on the Audi Q3, the VW Golf GTI, and the Tiguan.

 

 



VW Group's modular system strategy

VW to introduce Modular Transverse Matrix (MQB) in 2012

What is a modular
system strategy?
 The modular system strategy is a strategy used to design and produce vehicles with common components across different classes and brands. This will allow VW to streamline development procedures, lower costs, and mix-produce different models.
 There was a limit to sharing components between different classes in the previous platform strategies. The new VW modular system strategy standardizes various components and develops a model by combining those parts. Thus, while the distance between the gas pedals and the front axle is fixed, the wheelbase, overhang or track width may be adjustable, making it possible to accommodate various classes. The strategy allows the Group to produce vehicles tailored to the requirements of diverse markets and consumers at a lower cost due to the minimized number of the components.
Introduction of MQB  After the outline of VW's modular system strategy was announced in 2011, the actual implementation of this strategy to its models started in 2012. The automaker will first introduce MQB (Modular Transverse Matrix) to vehicles under VW, Audi, Skoda, and SEAT brands. VW Group annually produces four million units of the transverse engine powered models, which account for the most among the models that the Group produces. The first model to be built on MQB is the new Audi A3 launched in May 2012, and the new Golf to be launched in September.
 Around 40 major models will be built on MQB with 70% shared parts by 2017. VW aims to cut its development cost by 20% and assembly time by 30%.
Powertrains  VW developed a special new gasoline engine for MQB. Unlike the conventional gasoline engine with the exhaust facing the front and the intake facing the rear, this new engine models the layout of a diesel engine with the intake facing the front and the exhaust facing the rear. This layout allows any engine to be mounted in the same position, making it possible to standardize the assembly position of the transmissions. As a result, VW succeeded in eliminating 90% of the engine and transmission variations.
 The new EA211 series (40kW-110kW), which includes engines with cylinder deactivation, is used for gasoline engines, and the new EA288 series (66kW-140kW) is used for diesel engines. A drive system can be mounted into the same position for natural gas powered vehicles, HVs, and EVs. An MQB-based EV, the Golf Blue-e-Motion, will be launched in 2013.
Weight reduction
and equipment for
high-grade vehicles
 With the introduction of high tensile strength sheets and other technologies, the weight of the first models built on MQB will be greatly reduced (by 40 to 60 kg from the existing models). More than 20 units of innovational safety systems/infotainments currently equipped only on high-grade vehicles will also be installed. One piece of safety equipment installed is the multi-collision brake, an auto-brake system which activates immediately after the first collision to protect the vehicle from any secondary impact. The new A3 and the Golf will come with this system as standard equipment.

Development of four modular system strategies by respective brands

Brand in charge Outline
MQB VW  MQB (Modularen Querbaukasten/Modular Transverse Matrix) is designed for vehicles with transverse engines. It can be used for vehicles in a wide range of segments. This applies to the VW brand's Polo, Beetle, Golf, Scirocco, Jetta, Tiguan, Touran, Sharan, Passat, and Volkswagen CC.
MLB Audi  MLB (Modularen Langsbaukasten/Modular Longitudinal System) is designed for vehicles with transverse engines.
MSB Porsche  MSB (Modular Standard System) is used for the Porsche Panamera.
NSF VW  NSF (New Small Family) is used for compact cars including the VW up!, the Skoda Citigo, and the SEAT Mii.

 

 



Plans for VW Group's major models (2012)

Brand Model Outline
VW up!  Subcompact cars comprised of variants of New Small Family models. A three-door hatchback model was launched in Europe in late 2011. It is priced at 9,850 euros, 50 euros less than its rival model, the Kia Rio. A five-door model will be launched in 2012.
 The model will be launched in emerging markets from 2013. An up!-based local model will be launched in Brazil, targeting an annual sales volume of 150K units. VW is also considering launching local versions for China and India, priced much lower than its European model using locally produced parts.
New Golf  Built on modular transverse matrix MQB. This model shares about 70% of its parts with the Audi A3.
New
Beetle Cabrio
 Equipped with an electric controlled soft-top. As with the first model, the top folds on top of the back of the car instead of being stored into its body.
Passat Alltrack  A Passat-based crossover model. It offers an off-road mode, a feature which VW equipped on SUV-specific models only.
Audi New A3  The first model to incorporate VW's modular transverse matrix MQB. VW will first launch a three-door hatchback version and then a five-door version later. The model shaved off 80 kg from the previous model by switching the material used for the engine hood to aluminum. CNG and hybrid versions are in development.
A1 Sportback  A premium type, compact hatchback. This is a five-door version of the A1, Audi's smallest model.
Skoda Citigo  A sister model of the VW up!
New Rapid  A five-seater hatchback with a longer version of the VW Polo platform, placed between the Fabia and the Octavia. The production and sales in China will begin in 2013.
SEAT New Leon  A five-/three-door hatchback based on MQB modular system strategy.
Mii  A sister model of the VW up!
New Toledo  A sister model of the Skoda Rapid.
VW China New Sagitar  A C-segment, four-door sedan. The sixth generation of the Jetta will be launched as the new Sagitar in March. This Chinese model has a wider body compared to its previous models.
New Lavida  This best-selling sedan was launched in China four years ago. It is classed under A-segment, which is an important segment in the Chinese market. The body of the new model has a sharp contour which reflects VW's current design language. Its basic version comes with ABS, ESP, and front seat airbags. The new Lavida was showcased at the Auto China in Beijing held in the Spring of 2012.

 

VW Group's HVs and EVs

2010/11 2012 2013 2014/15
HV ・VW Touareg
・Porsche Cayenne S
・Audi Q5
・Porsche Panamera S
・VW Jetta
・Audi A6
・Audi A8
・VW XL1
・ Porsche 918 Spyder
・VW Passat
・Audi A4
・Audi Q7
EV ・Audi R8 e-tron ・VW up! blue-e-motion
・VW Golf blue-e-motion
・VW Caddy blue-e-motion
Note 1. The modular system strategy will also be applied to VW's electric drive systems. Driving components, such as motors, will be standardized to three types, electric systems to four, and chargers to one, allowing VW to comply with a variety of models just by changing their combinations.
2. VW's planned annual EV sales volume for 2018 is 300K units, accounting for 3% of the VW Group's sales volume.
3. The VW Jetta Hybrid will be launched in the Fall of 2012 in the U.S. and in 2013 in Europe.

 

 



VW makes MAN its subsidiary in November 2011 and Porsche in August 2012

VW consolidates MAN in November 2011

 On November 9, 2011, VW acquired 53.71% of the share capital and 55.9% of the voting rights of MAN, a leading German commercial automaker, making it VW's consolidated subsidiary. Since the stake in Scania held by MAN is now attributable to VW, VW's shareholding in Scania increases to 62.6% of the share capital and 89.2% of the voting rights. The consolidation with MAN and Scania is expected to bring in a savings of 200 million euros annually. VW will start the integration process by collaborating in the procurement area, and then in production and R&D field in the future.
 On June 6, 2012, VW increased its share of the voting rights in MAN to 75.03%. Upon this acquisition, the automaker will establish a department specializing in commercial vehicles by integrating MAN, Scania, and VW Commercial Vehicles. With consideration to the surrounding market, VW is planning to further increase its shareholding in MAN within a year.

MAN begins production of trucks under its own brand in South America; provides engines to VW brand commercial vehicles

 MAN Latin America, company established by acquiring VW's large-size commercial vehicle in Brazil in 2008, launched a new super-heavy truck series, the TGX, under the MAN brand. This is the first model to be produced locally under the MAN brand and sold in the South American market. MAN Latin America has been manufacturing vehicles under the VW brand.
 VW and MAN have been collaborating on powertrains in South America. Most of the VW's heavy-duty truck series, Constellation ADVANTECH, sold in South America are fitted with MAN D08 engine produced in Brazil.

VW completes merger with Porsche on August 1, 2012

 VW completed its merger with Porsche on August 1, 2012. VW was originally planning to merge its holdings company, Porsche SE. However, the merger was delayed due to Porsche's involvement with a lawsuit and issues with taxation on both companies regarding the merger. VW switched its acquisition target to Porsche AG, Porsche's business company, to virtually complete the consolidation.
 VW will increase its shareholding in Porsche AG from 49.9% to 100% by acquiring the remaining 50.1% of the shareholding from Porsche SE for 4.46 billion euros + one VW common share. Porsche AG's performance will be consolidated to the VW Group from August 1. The integration will allow the two automakers to work more closely in the high-end vehicle segment, accelerating the collaboration by using common parts.

Porsche to sell 200K units in 2018

 Porsche AG is targeting its annual sales volume at 200K units for 2018, up 70% from 2011. Porsche will launch its fifth compact SUV, Macan ("tiger" in Indonesian), in 2013. It will add new assembly and painting lines to the Leipzig plant in Germany, where this model will be manufactured, with 500 million euros. The new SUV will share modules with Audi's compact SUV, the Q5.
 With the hit of the large-size SUV, Cayenne, Porsche AG's revenue for 2011 went up 18% from the previous year to 10.9 billion euros, and operating profit increased 22% to two billion euros.

 

 



Revenue during first half of 2012 goes up 22.6% y/y to 95.4 billion euros and operating profit up 6.7% to 6.5 billion euros

 VW Group's revenue during the first half of 2012 was up 22.6% y/y to 95.4 billion euros from the increased sales volume and the consolidation of MAN (from November 2011). The operating profit was up 6.7% y/y to 6.5 billion euros.

 From brand perspective, the VW brand did well with the hit of its Tiguan and Touareg models in addition to the new up!, and the Beetle, achieving 9.5% y/y increase of 2,420K units. It also improved its revenue by 12.5%, but the operating profit only showed 3.8% growth due to its spendings on MQB initial cost. With the success of the Q5, A6, and A7 Sportbacks as well as the new A1 Sportback and the Q3, Audi sold 678K units during this period. Its Chinese joint ventures sold additional 166K vehicles under the Audi brand. The sales revenue increased by 16.2% y/y, and its operating profit by 13.2%.

VW Group's consolidated business results

(Millions of Euro)
2008 2009 2010 2011 Jan.-Jun.
2011
Jan.-Jun.
2012
Production ( '000 units) 6,347 6,055 7,358 8,494 4,184 4,681
Sales revenue
Operating profit
113,808
6,333
105,187
1,855
126,875
7,141
159,337
11,271
77,767
6,086
95,378
6,492
Profit before tax
Profit after tax
6,608
4,688
1,261
911
8,994
7,226
18,926
15,799
8,233
6,496
10,056
8,827
Employees ( '000) 357 367 389 454 502 519

Source: VW Annual Report 2011, Financial Report H1 2012
(Note) The unconsolidated Chinese joint ventures' data are included in production but not in sales revenue and operating profit since these companies are accounted for using the equity method.

 

VW Automotive Division's results by brand

(1,000 units, millions of Euro)
VW Audi Skoda SEAT Bentley CV Scania MAN China Others Total
Sales
volume
2008 3,648 1,275 626 375 8 439 31 989 (1,119) 6,272
2009 3,459 1,183 552 319 4 275 43 1,397 (923) 6,310
2010 3,863 1,321 585 349 5 349 64 1,871 (1,128) 7,278
2011 4,450 1,543 690 362 7 441 80 25 2,201 (1,438) 8,361
Jan.-Jun. 2011 2,207 762 362 188 3 218 40 1,053 (699) 4,133
Jan.-Jun. 2012 2,416 678 408 218 5 228 32 68 1,255 (664) 4,644
Sales
revenue
2008 72,928 34,196 8,039 5,196 1,084 9,607 3,865 (32,036) 102,879
2009 65,368 29,840 7,100 4,561 571 5,294 6,385 (25,592) 93,527
2010 80,251 35,441 8,692 5,038 721 7,392 8,462 (32,709) 113,288
2011 94,690 44,096 10,266 5,393 1,119 8,985 10,064 2,652 (33,768) 143,497
Jan.-Jun. 2011 46,874 21,526 5,363 2,760 486 4,416 5,034 (16,480) 69,979
Jan.-Jun. 2012 52,746 25,022 5,715 3,349 757 4,848 4,606 7,810 (18,333) 86,520
Operating
profit
2008 2,715 2,772 565 (78) 10 375 417 (1,336) 5,440
2009 561 1,604 203 (339) (194) 313 236 (1,135) 1,249
2010 2,173 3,340 447 (311) (245) 232 1,342 (769) 6,209
2011 3,796 5,348 743 (225) 8 449 1,372 193 (1,617) 10,067
Jan.-Jun. 2011 2,131 2,540 412 (48) (17) 235 743 (465) 5,531
Jan.-Jun. 2012 2,212 2,876 449 (42) 57 242 477 354 (798) 5,827
Source: VW Annual Report 2011, Financial Report H1 2012
Note 1. The number of vehicles sold is on a wholesale basis. VW represents VW passenger cars. CV represents VW commercial vehicles. China represents performances in China. "Others" represents adjustments made on inter-group transactions.
2. Includes MAN as from November 2011.
3. The VW Group has Financial Service Division in addition to the automotive division shown above.
4. The total equity benefit for the two Chinese joint ventures was 395 million euros for 2008, 981 million euros for 2009, 1,907 million euros for 2010, 2,616 million euros for 2011, and 1,778 million euros for the first half of 2012 (1,162 million euros for the first half of 2011).


Source: VW's financial reports and presentations/press releases, various media reports

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