VW boosts production in key markets in North America and China

1st half 2013 sales climb to 4.8 million units



VW Group 2012 Sales by Region Volkswagen (VW) Group aims to increase its annual sales volume to ten million vehicles by 2018 as its mid-term goal and actively made investments to attain the target. The global sales volume for the January to June 2013 period increased by 5.4% year-over-year to 4.8 million units. VW places  China and North America as its most important markets.

 LMC Automotive forecasts light vehicle sales of Volkswagen in 2013 to increase by 1.8% to 9.0 million units. Volkswagen continues to expand its unit sales to 9.6 million in 2014, a 6.7% increase. From 2014, Volkswagen Group "should see a more robust global expansion...momentum coming from both Asia and North America."

Related Reports:
US Market: Continued growth spurs investment (Jun. 2013)

Shanghai Motor Show 2013:
VW: 11 models including CrossBlue Coupe (premiered) and Audi A3 sedan (Jun. 2013)

VW's strategy: Strategy 2018 and modular system strategy

Goals for 2013

Goals for 2013  VW will further strengthen its foundation in the global market by releasing various new models in 2013. Sales revenue is expected to exceed 2012 level. VW aims to keep the same level of operating profit in 2013 as that of 2012, considering the difficult market situation and competition.
Investment plans
for 2013
 The group will invest EUR 50.2 billion in its automotive division between 2013 and 2015. EUR 39.2 billion will be spent on its facilities, of which 60% will be allocated to Germany alone. Furthermore, a total of EUR 14.5 billion will be spent on different brands including productions at Audi's Mexico plant and expansions of the Porsche production plant in the next three years. VW will reduce cost by promoting its modular platform strategy. New models from different brands will be launched during 2013. In China, the group is also planning to develop new models and spend a total of EUR 9.8 billion in its facility by 2015.


"Strategy 2018" and VW's performances

for 2010
for 2011
for 2012
Goals for 2018
VW Group sales volume (units) 7.2 million 8.27 million 9.28 million 10 million or more
VW Group pre-tax profit ratio 7.1% 7.8% (note 1) 6.9% (note 1) 8.0% or more
Automotive Division CAPEX to sales 5.0% 5.6% 5.9% 6.0%
Automotive Division return on investment 13.5% 17.7% 16.6% 16% or more
Average CO2 emissions level of new vehicles
from VW Group (EU27)
144g/km 137g/km 134g/km 120g/km or less

Note 1: The group pre-tax profit ratio is 11.9% for 2011 and 13.2% for 2012 if incomes from the reassessment of the put/call options for Porsche's shareholding are included.


Introduction of modular system strategy

 VW group is introducing modular system strategy to standardize its manufacturing technologies and facilities. This will reduce products' production lead time and enhance competitiveness in global market as well as  meeting local needs and customizing the vehicles flexibly. Different brands and classes of the group will share vehicle platforms and components, which will lead to cost reduction by economies of scale as well as other synergetic effects.

What is modular
system strategy?
 A strategy used to design and produce vehicles with common components across different brands and classes. This will allow VW to streamline development procedures, lower costs, and mix-produce different models.
 In this strategy, every component used on vehicles including electrical systems, powertrains, chassis, and interior parts are standardized. New models will be designed by combining these components. As a result, common module will be shared across several different classes. Moreover, by standardizing the specification, for example of the positioning of engines or air conditioning units, production volume of common components increases; therefore, the production cost decreases by economies of scale. This strategy will also allow products to be tailored based on the local and customer needs while reducing lead time to develop and launch the products.
 Around 40 major models will be built on a platform "Modularen Querbaukasten/Modular Transverse Matrix (MQB)" with 70% of the parts to be shared by 2017. VW aims to cut its development cost by 20% and assembly time by 30%.


Modular system platform classifications:

 Different brands develop modular system platforms separately:

MQB VW  MQB is a platform designed for vehicles with transverse engines. The platforms can be applied to a wide variety of segments. Models built on this platform under the VW brand are: Polo, Beetle, Golf, Scirocco, VW CC, and Audi A3.
MLB Audi  Modularen Langsbaukasten/Modular Longitudinal System (MLB) is designed for vehicles with longitudinal engines. MLB is used for:Porshce Macan/Phaeton
MSB Porsche  MSB (Modular Standard System) is used for models such as the Porsche Panamera.
NSF VW  New Small Family (NSF) is used for small cars including the VW up!, the Skoda Citigo, and the SEAT Mii.



Production network and Trend in models in China

 VW will actively enhance its production for increasing its annual production capacity in China to three million units by 2014 and four million by 2018. In the next three years, VW will invest a total of EUR 9.8 billion with funds from respective joint ventures for developing new models and facilities. This will allow VW to engineer new technologies and develop products tailored to local needs.

Activities at FAW VW

Annual production volume enhancement at Foshan Plant  In May 2013, VW and FAW signed a joint agreement regarding the phase two of construction at the Foshan plant. Construction of the plant began in February 2011 in Nanhai District, Foshan, Guangdong province. The first phase of construction is scheduled to be completed in August 2013. The second phase will take 36 months with an investment of approximately CNY 15.3 billion. Expected annual volume after the completion of the phase one is approximately 300,000 units increasing to 600,000 units after the completion of the phase two.  The Foshan plant will manufacture new models under the VW and Audi brands as well as the latest new energy vehicles.
Chengdu vehicle plant to expand annual production to 540,000 units  In January 2013, FAW-VW completed the expansion at the Chengdu plant in Sichuan Province and lined off the new Jetta. Its production volume expanded from 350,000 to 540,000 units. In addition to vehicle plant, there are also a number of facilities such as engine plant, supplier park, and logistics site within the premises. The new Jetta, as well as the new Sagitar are manufactured at the plant. VW plans to add several B-class vehicles in the future.
Completion of Chengdu engine plant  In April 2013, the construction of the FAW-VW engine plant was completed at Chengdu, Sichuan Province. The plant has a floor area of 160,000 square meters and employs 900 workers. The plant produces Euro 5 compliant EA211 engines. Its annual production capacity is 450,000 units. Low supply of powertrains has been an issue at the FAW VW vehicle plant.
Construction of new engine plant begins at Changchun City  In May 2013, FAW VW began construction of a new engine plant in Changchun, Jilin Province. An approximately CNY 2.3 billion will be spent for this project. The land area is  124,000 square kilometer. After the completion of the first phase of the construction, the plant will have an annual production capacity of 450,000 EA211 engines and will expand it to 600,000 units after the second phase.
Operation of new MT plant for compact vehicles begins in Changchun City  In November 2012, FAW VW Changchun transmissions plant went into operation manufactures MTs for VW compact vehicles, MQ200. A total of CNY 196 million (approximately JPY 25 billion) will be spent for this plant. It will have an annual production capacity of 450,000 units. The MQ200 will basically be combined with the EA21 and EA111 compact engines to power the new Jetta and Golf.
Audi opens R&D center in Beijing  In February 2013, Audi announced the opening of its R&D site for the Asian region, Audi R&D Center Asia. Personnel engaged in R&D at Audi in Beijing will increase from the current 40 employees to 300. At the center, electronic and communications devices will be localized to meet needs of Asian drivers. The center will also be involved in development of components for state-of-the-art technologies for new energy vehicles and powertrain. Collaborations with FAW VW, which manufactures Audi models, will also be strengthened.


Activities at Shanghai VW

Construction of Ningbo plant  In January 2012, Shanghai VW commenced the construction of the Ningbo plant in Ningbo Hangzhou Bay New Zone, Zhejiang province. The plant is scheduled to start operations in 2014. A total of CNY 11.7 billion will be spent on this construction. The plant will have an annual production capacity of 300,000 passenger cars. A supplier park will also be constructed in Ningbo Hangzhou Bay New Zone along with the construction of the plant.
Yizheng plant starts operation  In July 2012, Shanghai VW started the operation of its new Yizheng plant constructed in Yizheng, Yangzhou. About CNY 10 billion was spent for this project. The plant will be built on approximately 1.3 million square meters of land. The plant has stamping, welding, painting, and assembly lines as well as technical testing center, training facility, and energy center on the premises. It will have a capability to manufacture 300,000 vehicles producing the new Polo, Santana, and Rapid.
Construction of new Urumqi plant  In May 2013, Shanghai VW commenced construction of its new plant in Urumqi Economic Development Area in Xinjiang Uyghur Autonomous Region. CNY 2 billion will be spent for the first phase of the construction to manufacture 50,000 vehicles. Scheduled to start operations at the end of 2014. The plant will have body manufacturing, painting, and assembly lines. It will also be equipped with facilities to test assembled vehicles.
Construction of new plant begins in Changsha  In May 2013, Shanghai VW started construction of a new plant in Changsha Economic Development Area in Hunan Province. The plant will be built on approximately 1.38 million square meters of land with a manufacturing capacity of 300,000 vehicles. Scheduled to start operations in 2015. There will be stamping, welding, painting, and assembly facilities on the premises. The Skoda Octavia is going to be the first model to go into production.


Major models to be launched in Chinese market

New Santana  In October 2012, VW announced the new mid-size sedan, the Santana, targeting the Chinese market. The new model went into the market in December 2012. The model is based on modified version of VW's platform, the PQ25, powered by the EA211 1.4/1.6-liter naturally aspirated four cylinder gasoline engine series. The vehicle measures 4,473mm in length, 1,706mm in width, 1,469mm in height, with a wheelbase of 2,603mm. The new Santana is manufactured at Shanghai VW.
New Jetta  In March 2013, FAW VW launched the new Jetta. It is a compact sedan built on modified version of the PQ25 platform measuring 4,487mm in length, 1,706mm in width, and 1,470mm in height with a wheelbase of 2,603mm. The powertrain is available with a new 1.4/1.6-liter EA211 engine.
Q3  In April 2013, FAW VW launched a compact SUV, the Q3, under the Audi brand. The Q3 for Chinese market will be locally manufactured at FAW VW's Changchun plant. It is built on modified platform of the PQ35  measuring 4,385mm in length, 1,831mm in width, and 1,608mm in height with a wheelbase of 2,603mm.
Rapid  In April 2013, Shanghai VW launched the Skoda Rapid. It is a local production model after the Octavia, Fabia, and Superb. The vehicle measures 4,501mm in length, 1,706mm in width, 1,469mm in height, with a wheelbase of 2,603mm. Equipped with a 1.4/1.6-liter EA211 engine, this new model is available with 5-speed MT for the 1.4-liter engine or with 6-speed AT/5-speed MT for the 1.6-liter engine.
Tiguan  In June 2013, Shanghai VW launched a SUV, the Tiguan. The updated model features a 1.8/2-liter TSI engine. Its standard equipment include: Electronic Stability Program (ESP), and Electric Parking Brake (EPB).
Gran Lavida  In July 2013, Shanghai VW launched an A-class station wagon for the Chinese market, the Gran Lavida. This Lavida spin-off, was showcased at the Auto Shanghai held last April. The powertrain is available with either a 1.6-liter engine or a 1.4-liter TSI engine.
New CC  In July 2013, FAW VW announced the new CC in Shanghai. The powertrain is available with either a 1.8/2.0-liter TSI or a 3.0-liter V6 engine. This model has latest standard equipment such as parking assist system "Park Assist" and lane-departure warning system "Lane Assist."



North American market prepares for local production of major models

 VW aims to attain its total sales volume of one million units (800,000 units under the VW brand and 200,000 units under the Audi brand) by 2018 in the North American market. VW will invest more than five billion dollars into product and technology development and infrastructure over the next three years. To avoid oversupplying the Passat to dealers in North America, the automaker will adjust production volume at the Chattanooga plant. Audi is working to expand its operations in North America as it is one of the largest markets in the world after Europe and Asia. It estimates the Audi-brand will contribute to growing revenue for the VW group following the BMW and Mercedes-Benz brands which leads the high-class market in North America.

U.S. Opens R&D center in California  In August 2012, VW completed the construction of the new R&D center Test Center California (TCC) in Oxnard, California. A total of USD 27 million was spent on this project. The center covers 64,000 square feet. The facility will mainly be used for product development and gas emissions level testing. It will also have a training center used for training employees working at sales and service locations.
Chattanooga plant in Tennessee lays off 500 employees  In April 2013, 500 employees were laid off at the Chattanooga plant in Tennessee. The cutback was made due to slow sales growth of the Passat in North America and required adjustment of its production capability. (The 2012 sales volume of the Passat was 117,000 units). In August 2012, VW announced that it will increase the plant's annual production capacity from 150,000 units to 180,000 units by 2013.


Mexico To start production of New Golf in Mexico from 2014  In January 2013, VW announced that it will manufacture the New Golf for the North/South American market at the Puebla plant in Mexico. The production of the seventh generation Golf will start from Q1 2014. The production volume at the Puebla plant was 604,000 units in 2012 and 84% of the volume produced was exported. The plant currently manufactures the Beetle and the Jetta.
Operation at new Silao engine plant begins  In January 2013, the operation of the new Silao engine plant started in Guanajuato located in central Mexico. The plant was constructed with USD 550 million on an approximately 600,000 square meter land. It will have an annual production capability of 330,000 engines. The TSI engines manufactured at the plant will be supplied to the Puebla plant in Mexico and the Chattanooga plant in the U.S.
Construction of new Audi plant starts in Mexico  In May 2013, Audi commenced the construction of the San Jose Chiapa in Puebla, Mexico. This is the first Audi plant in North America. More than USD 900 million will be spent for this project over the next two years. With a land area of 400 hectares, the plant is set to start production of the next SUV Q5 from mid-2016. The annual production capacity is 150,000 units. The local procurement ratio at the new plant will be 65% or more.



Europe and other markets: production of new models and investment plans

Western Europe

 Between 2013 and 2015, VW will invest EUR 39.2 billion into its facilities with 60% allocated to Germany. The German automaker aims to maintain its international competitiveness via introduction of latest technologies into 27 German plants.

Germany Increase production of new Golf at Wolfsburg plant  In January 2013, VW announced that it will increase its working shifts at the Wolfsburg plant in order to increase production of the new Golf. Since the announcement of the European model in September 2012, the sales of the model have been doing well receiving over 100,000 orders. To match the increased demands, VW added a total of three Saturday morning shifts from January to March 2013. The company also sought employees willing to work during the three-week vacation period in July 2014 to increase production.
Agreements made with union regarding pay raise  In May 2013, VW announced that it has reached an agreement with IG Metall on pay raise for employees working at plants in Germany. This collective bargaining agreement will expire on February 28, 2015. The new wages will be applied to approximately 102,000 employees working at VW Financial Services AG, and plants in Wolfsburg, Brunswick, Hannover, Salzgitter, Emden, and Kassel.
Additional workers employed at Leipzig plant in preparation for production of new model  To meet the production of the Macan scheduled to start at the end of 2013, Porsche expanded the Leipzig plant investing EUR 500 million. A vehicle assembly facility and a painting facility to allow continuous painting are currently being constructed on a 645,000 square meters of land.
 1,000 new workers were hired at the Leipzig plant to start production of the new SUV Macan. Furthermore, 400 new engineers will be employed separately at the plant.


Spain SEAT starts production of new Leon  In October 2012, Sociedad Espanola de Automoviles de Turismo (SEAT) started production of a new compact hatchback, the Leon, at its Martorell plant. This model is built on the new platform, the MQB. It spent EUR 800 million to expand its facilities at the plant and to develop the new vehicle.


U.K. GBP 800 million invested for production of new Bentley SUVs  In July 2013, a VW group company Bentley announced that it will spend 800 million pound sterlings (GBP) over the next three years starting from 2013. The money will be spent for expanding its facilities for the manufacturing of the new SUV scheduled to be launched in 2016.


Other Markets

Russia enhances production structure

 VW has set its annual sales target in Russia at 500,000 units by 2018. The 2012 sales volume increased by 38% y/y to 316,000 units, of which over 50% of the volumes are local production models.

Holds groundbreaking ceremony of new Kaluga engine plant  In December 2012, VW started construction of the new Kaluga engine plant. The company has announced an investment of EUR 840 million into Russia over the next three years. About EUR 250 million will be spent for the construction of this plant from the investment. The plant covers a 30,000 square meter land with an annual production capability of 150,000 engines. Production of EA211 1.6-liter gasoline engines is set to start from the beginning of 2015. The plant will provide over 30% of the engines for VW's local production models by 2016.
Production of new Octavia starts  In June 2013, Skoda began the production of the new Octavia at GAZ Nizhny Novgorod plant. The production of the Yeti has already begun in December 2012. In preparation for the production of the two models, the Yeti and Octavia, VW, Skoda, and GAZ have spent a total of EUR 300 million into renovations of the plant to establish an integrated production system from manufacturing of bodies, painting to assembly.
Prepares for production of new Rapid in 2014  VW is planning to start production of the new Rapid for the Russian market at the Kaluga plant from February 2014. The plant will suspend operations in August 12 through 18, 2013 to prepare for the production of this new model. The company will pay its workers two-thirds of their wages during the suspended period.


Hungary to enhance production capability

Manufacturing of new A3 Sedan at Gyor plant  In June 2013, VW started production of the new A3 sedan at the Gyor plant located in western Hungary. More than EUR 900 million was spent for building this new facility. With a total floor area of two million square meters, the plant will have an integrated production system within two years with press and body shops, painting and assembly lines installed. The A3 Sedan will be the first model to be manufactured under the integrated system in Hungary. Its annual production capacity will increase from 85,000 in 2012 to 125,000 units.


Brazil to enhance production structure

EUR 3.4 billion invested into operations in Brazil  In October 2012, VW announced that it will spend EUR 3.4 billion by 2016 to launch new models and technology as well as expanding plants in Brazil.
 EUR 157 million will be spent for introducing the latest painting process at the Taubate plant. This will save 30% of energy and 20% of water used per vehicle. A four-door sedan, based on the Voyage hatchback model, is scheduled to be manufactured at the rate of 1,300 units daily.
 EUR 126 million will be invested into the Sao Carlos plant to increase daily production volume from the current 3,800 units to 4,800 units. It will manufacture EA111 engines supporting flexible-fuel and engines built with new technologies.



Plans for VW Group's major models

VW brand

Models Overview
New Golf  In September 2012, VW began selling the seventh generation Golf in the European market. The new model will be launched in the U.S. in early 2014. The new Golf is a five-door hatchback built on a modular system platform, the MQB.  This model shed 100kg from its body compared to the previous version by light-weighting engines and other components. Powered by a newly developed engine, the vehicle has a maximum output of 63kW / 85PS—110kW / 150PS.
 VW offers several versions of the Golf. The all-wheel-drive Golf4MOTION was launched in late January 2013 and the high-performance Golf GTI was released in February 2013.  The Golf Estate station wagon came out in March 2013 and the fuel efficient Golf TDI BlueMotion was launched in June 2013. A newly engineered bi-fuel engine supporting natural gas (CNG), the Golf TGI BlueMotion is also awaiting its debut.
XL1  In February 2013, VW showcased the consumer model of the PHV XL1 at the Geneva Motor Show. It has a top-of-the-world fuel efficiency with a fuel consumption of 0.9-liter/100km. Powered by a 5.5kWh lithium-ion battery, the vehicle's continuous cruising ranges are 50km in EV mode and 500km in mixed mode. The CO2 emissions level is 21g/km. This model will be sold in a limited quantity of 250 units worldwide.
e-up!  In March 2013, VW announced the EV e-up!. The actual model will be showcased at the Frankfurt Motor Show on September 10 and starts receiving orders after the event. The e-up! is the first EV production model for VW. The vehicle features a 60kW/82ps electric motor and a 18.7kWh lithium ion battery.
CrossBlue  A three-row, seven-seater, crossover SUV concept model. It was showcased at the Detroit auto show in January 2013. The body measures 4,987mm in length, 2,015mm in width, and 1,733mm in height. This Plug-in Hybrid Electric Vehicle (PHEV) is powered by a direct injection turbocharged diesel engine TDI, two electric motors, and a lithium ion battery.
CrossBlue Coupe  This Plug-in Hybrid (PHV) concept, the CrossBlue Coupe, was showcased at the Auto Shanghai in April 2013. The body measures 4,889mm in length, 2,015mm in width, and 1,679mm in height with a wheelbase of 2,980mm. It is powered by a six-cylinder turbocharged V engine TSI and two electric motors. This model is built on a modular system platform MQB. The production models will be available with a four/six-cylinder engine supporting gasoline, diesel, and natural (CNG) gas.
New Phaeton  The new Phaeton is a large-size luxurious sedan built on a MLB platform. The model is currently under consideration for a re-launch in the U.S. market.


Audi brand

Models Overview
A3 Sportback  In February 2013, Audi announced the A3 Sportback. (VW announced a three-door hatchback of the third generation A3 at the 2012 Geneva Motor Show). The model is built on a modular system platform MQB. A3 Sportback g-tron featuring a natural gas powered engine was also introduced at the Geneva Motor Show in March 2013. A PHV version of the A3 e-tron is scheduled to be released in 2014.
Q7  A SUV scheduled to be released into the European market in summer 2014. It has been reported to be 360kg lighter than the current model. A hybrid model will also be launched. It will be built on the same platform used for the Porsche Cayenne and Bentley SUV.
Q5  The next-generation model of this SUV is scheduled to be manufactured at the San Jose Chiapa plant in Mexico from 2016. It has been rumored that the new MLB platform will be used for this model.


Other brands

Brands Models Overview
Skoda New Octavia  In December 2012, Skoda announced the new third generation Octavia. This model is built on a modular system platform MQB following the new Golf and the new AudiA3. A station wagon version of this model, the Octavia Combi, was announced in February 2013. Its production started in June 2013 in Russia.
SEAT Leon Verde  In June 2013, SEAT introduced the PHV Leon Verde. It is a Leon-based prototype developed as part of a study project, CENIT VERDE, to increase popularity of EVs in Spain. The cruising range of this model is 50km in EV mode with its battery fully charged. The maximum range will increase to 816km with a full 40-liter fuel tank. It has a consumption economy of 176.6mpg with a CO2 emissions level of 36g/km.
Leon ST  In July 2013, SEAT announced the overview of its new station wagon, the Leon ST. This model will be introduced at the Frankfurt Motor Show in September. It is built on a modular system platform, the MQB available with a 1.2 to 2-liter gasoline powered turbocharged TSI or a diesel powered turbocharged TDI. The fuel economy of the 1.2 TSI engine (105ps) is 4.9-liter/100km with a CO2 emissions level of 114g/km.
Porsche Panamera  In April 2013, Porsche announced the new Panamera. In addition to the gasoline and diesel engine models, the PHV version Panamera S E-Hybrid and the LWB Panamera Executive were also announced. The Panamera S E-Hybrid combines a 3.0-liter V6 engine and an electric motor with a total output of 416hp. The maximum speed is 270km/h (136km/h in EV mode).
Macan  The new SUV Macan from Porsche uses the new MLB platform developed by Audi. It will premier at the L.A. Auto Show in November 2014.
Bentley New SUV  In July 2013, Bentley announced that it will start production of its first SUV at the Crewe headquarters plant located in northwestern U.K. from 2016. It will share its platform with the Porsche Cayenne and the Audi Q7.



Worldwide sales volume of VW group

 2012 worldwide sales volume of the VW group increased by 12.2% y/y to 9,276,000 units. By region, China grew by 24.6% to 2,815,000 units, South America by 14% to 1,082,000 units, North America by 26.2% to 843,000 units with every market showing an increase. The increase in the U.S. market was triggered by demands to replace old vehicles. Increase in the Brazilian market was caused by increased demands from tax reduction (note: the rate of imported cars decreased because this reduction only applies to vehicles manufactured within Brazil). In China, the favorable sales of VW Jetta, new Passat, SKODA Octavia, and Audi A6/Q5 contributed to the giant leap in its sales volume.

 In contrast, only the Western European market decreased by 2.4% y/y to 309,000 units. European financial crisis, increased unemployment rate from losses in the market, and the demand decline from southern European market, especially in Italy, France and Spain are all thought to be the cause of this decrease.

 By brands, the VW brand increased by 12.7% y/y to 5,738,000 units, the Audi brand by 11.7% to 1,457,000 units, the Skoda by 6.8% to 939,000 units. Due to losses in markets in Italy, Spain and France, the SEAT brand decreased its sales by 8.3% to 321,000 units. The commercial vehicle under the VW brand increased by 4% and sold 550,000 units. Scania decreased its sales volume by 16.3% to 67,000 units from losses in the western Europe and southern American markets.

 The group's sales volume in the January to June period 2013 increased by 5.4% y/y to 4,798,000 units. The VW brand increased its sales by 4.4% and Audi increased by 6.4% from the same period last year. The VW group increased sales with growth in the Chinese market. On the other hand, only the Skoda brand decreased sales volume by 5.7% from the previous year.

VW's global sales by brand and region

(Units in thousands)
2008 2009 2010 2011 2012 YoY
VW Brand 3,668 3,954 4,503 5,091 5,738 12.7% 2,787 2,911 4.4%
Audi Brand 1,003 950 1,092 1,304 1,457 11.7% 733 780 6.4%
Skoda Brand 675 684 763 879 939 6.8% 493 465 (5.7%)
SEAT Brand 368 337 340 350 321 (8.3%) 163 182 11.7%
Other Brands 10 6 6 8 70 x8.8 5 87 x17.5
Commercial Vehicles 502 362 436 529 550 4.0% 270 271 0.4%
Scania 31 43 64 80 67 (16.3%) 32 38 18.8%
MAN - - - 25 134 x5.4 68 65 (4.4%)
Global Sales 6,257 6,336 7,203 8,265 9,276 12.2% 4,551 4,798 5.4%
Western Europe 2,989 2,918 2,903 3,168 3,092 (2.4%) 1,647 1,586 (3.7%)
Central/Eastern Europe 560 385 430 563 672 19.4% 336 326 (3.0%)
North America 503 468 550 668 843 26.2% 391 439 12.3%
South America 803 826 908 963 1,082 12.4% 505 493 (2.4%)
Asia/Pacific 148 150 221 316 365 15.5% 181 185 2.2%
China 1,024 1,401 1,925 2,260 2,815 24.6% 1,302 1,544 18.6%
Other Regions 228 189 268 327 407 24.5% 190 225 18.4%
Sources:VW Annual Reports (2012) Q1_2013, Half-Yearly Financial Report 2013
(Notes) 1. "Other brands" are Bentley, Lamborghini, Bugatti and Porsche. "Commercial vehicles" are all VW brand, excluding MAN and Scania.
2. Includes MAN's value from November 9, 2011.
3. Includes Porsche's value from August 2012 in "Other Brands".
4. Numbers in brackets "( )" represent negative value.



VW group performances

 2012 group revenue for VW increased by 20.9% y/y to EUR 192.68 billion, operating profit by 2.1% to EUR 11.51 billion, and profit after tax by 38.5% to EUR 21.88 billion. The increase of sales volumes and consolidation of MAN and Porsche are elements of these increases. Furthermore, pre-tax profit exceeded the operating profit to EUR 25.49 billion. This includes the EUR 12.3 billion from the acquisition of Porsche in July 2012 and the EUR 3.7 billion from the joint venture in China.

 Sales revenue increased by 3.5% to EUR 98.69 billion, operating profit decreased by 11.6% to EUR 5.78 billion and profit after tax also decreased by 45.8% to 4.79 billion during the January to June period in 2013. These decreases were caused by difficult market situation in European markets affecting the automotive division.

VW Group's consolidated business results

(Euros in millions)
2008 2009 2010 2011 2012 YoY
Sales Revenue 113,808 105,187 126,875 159,337 192,676 20.9% 95,378 98,687 3.5%
Operating Profit 6,333 1,855 7,141 11,271 11,510 2.1% 6,540 5,780 (11.6%)
Pre-tax Profit 6,608 1,261 8,994 18,926 25,492 34.7% 10,090 6,620 (34.4%)
Profit After Tax 4,688 911 7,226 15,799 21,884 38.5% 8,847 4,793 (45.8%)
Sources:VW Annual Reports (2012) Q1_2013, Half-Yearly Financial Report 2013
(Notes) 1. Financial Service department is included in "Revenue" and "Profit"
2. VW has consolidated Porsche since August 1, 2012 and MAN SE since November 2011.
3. Numbers in brackets "(   )" represent negative value.



Production Forecast by LMC Automotive: VW Group production forecast by country and by make

(LMC Automotive、June 2013)

VW Group Light Vehicle Production Forecast According to LMC Automotive's forecast in June 2013, Volkswagen's light vehicle production in 2013 will increase by 0.7% to 9.3 million units. The group's steady growth continues to 2016 and reaches 11.2 million units, a 20.9% increase compared with the year 2013.

 The robust increase mainly comes from China. Production in China shows a 12.3% growth y/y in 2013 to 2.9 million units. By 2016, the country's production is expected to increase to 4.0 million units, which is significant growth of 35.4% compared to the volume of 2013. LMC automotive indicates, "VW will rely heavily on the Chinese market in the future."

 Hungary also shows a significant jump; through 2013 and 2014, production doubles. The increase is expected since "Audi has just opened new capacity boosting facilities at its Gyor plant in Hungary in June 2013, which enables it to put the new A3 sedan into production. Capacity at Gyor will increase to 125,000 units compared to 60,000 units at present."

 Conversely, German production is expected to drop by 4.0% in 2013 to 2.3 million units and 3.4% to 2.2 million units in 2014. LMC Automotive comments, in Germany, "Volkswagen Group is currently [(2013)] running at about 80% capacity utilization, well above the European average of 65%. [In 2014], this utilization is expected to slip slightly, as a result of delays in replacement of key models. "

VW Group production forecast by country and by make (LMC Automotive)

COUNTRY GLOBAL MAKE 2010 2011 2012 2013 2014 2015 2016
Grand Total 7,523,545 8,697,919 9,206,099 9,273,060 9,750,039 10,656,776 11,215,289
Argentina Volkswagen 87,073 125,438 107,904 115,566 119,070 126,008 130,669
Austria Audi 0 0 0 4,336 5,540 5,421 2,698
Belgium Audi 68,742 117,561 123,110 116,531 106,430 121,424 174,470
Brazil Audi 0 0 0 0 4,084 6,632 6,832
Volkswagen 822,841 828,443 852,095 810,112 805,062 890,873 970,346
Brazil 822,841 828,443 852,095 810,112 809,146 897,505 977,178
Canada Volkswagen 15,686 14,351 8,662 2 0 0 0
China Audi 210,482 258,556 333,433 388,978 458,092 477,950 480,058
Skoda 196,703 218,945 230,481 312,690 395,034 421,663 471,312
Volkswagen 1,492,444 1,718,723 2,060,929 2,246,815 2,518,688 2,815,543 3,042,261
China 1,899,629 2,196,224 2,624,843 2,948,483 3,371,814 3,715,156 3,993,631
Czech Republic SEAT 0 0 5,000 27,843 24,770 23,809 22,518
Skoda 502,088 581,170 560,312 523,191 518,619 588,492 659,485
Czech Republic 502,088 581,170 565,312 551,034 543,389 612,301 682,003
Finland Porsche 6,385 2,015 0 0 0 0 0
Germany Audi 875,468 1,017,155 814,854 806,956 725,101 754,663 747,011
Porsche 89,144 125,005 150,074 148,456 166,529 167,247 172,501
Volkswagen 1,390,204 1,547,509 1,433,451 1,357,541 1,317,000 1,464,314 1,439,745
Germany 2,354,816 2,689,669 2,398,379 2,312,953 2,208,630 2,386,224 2,359,257
Hungary Audi 38,541 39,518 33,553 48,282 101,251 106,723 99,502
India Audi 2,338 4,282 5,757 10,343 13,382 15,274 17,052
Skoda 18,317 32,945 54,036 26,397 42,768 49,357 53,414
Volkswagen 33,445 80,036 87,743 79,136 100,447 124,457 142,339
India 54,100 117,263 147,536 115,876 156,597 189,088 212,805
Indonesia Audi 0 687 509 371 409 449 478
Volkswagen 339 1,189 1,601 924 1,053 1,153 1,442
Indonesia 339 1,876 2,110 1,295 1,462 1,602 1,920
Iran Volkswagen 24 8 0 0 0 0 0
Italy Lamborghini 1,226 1,808 2,287 2,423 2,715 2,900 2,900
Kazakhstan Skoda 0 635 2,554 3,619 4,484 5,465 6,654
Malaysia Volkswagen 0 163 1,486 3,625 15,659 18,186 18,277
Mexico Audi 0 0 0 0 0 0 70,458
Volkswagen 434,692 509,123 602,664 547,014 554,780 679,136 682,690
Mexico 434,692 509,123 602,664 547,014 554,780 679,136 753,148
Poland Volkswagen 149,200 176,931 161,997 161,356 152,190 151,129 152,809
Portugal SEAT 10,050 18,140 18,727 17,425 14,865 11,166 8,036
Volkswagen 91,235 114,960 91,291 73,616 59,523 68,444 60,754
Portugal 101,285 133,100 110,018 91,041 74,388 79,610 68,790
Russia Audi 5,528 0 0 3,151 8,800 10,179 8,223
Skoda 36,294 51,722 61,055 61,546 84,237 114,512 115,462
Volkswagen 46,985 86,444 119,163 129,938 129,733 119,011 114,845
Russia 88,807 138,166 180,218 194,635 222,770 243,702 238,530
Slovakia Audi 46,977 53,707 52,458 51,872 50,473 69,992 68,892
SEAT 0 990 26,409 28,687 30,984 29,378 28,095
Skoda 10,000 1,027 36,687 47,346 49,442 42,078 37,123
Volkswagen 47,827 83,665 218,908 206,820 209,784 210,524 211,353
Slovakia 104,804 139,389 334,462 334,725 340,683 351,972 345,463
South Africa Volkswagen 109,564 118,708 106,241 101,041 111,514 77,956 73,974
Spain Audi 108 19,615 106,817 101,629 98,668 94,787 94,159
SEAT 335,004 333,807 270,279 275,686 276,869 243,876 239,476
Volkswagen 336,336 353,353 287,287 258,989 280,764 283,984 306,619
Spain 671,448 706,775 664,383 636,304 656,301 622,647 640,254
UK Bentley 4,791 7,528 9,186 10,181 11,440 11,512 11,451
Ukraine Skoda 7,464 11,656 14,556 15,582 28,633 38,441 42,625
USA Volkswagen 0 40,401 152,543 147,044 151,153 212,668 226,281
Source:LMC Automotive "Global Automotive Production Forecast (June, 2013)"
(Notes) 1. Data indicate figures of only small-size vehicles, including passenger cars and light commercial vehicles with a gross vehicle weight of under 6 tons.
2. All rights reserved. Reproduction of any data will require permission of LMC Automotive.
3. For more detailed information or inquiries of forecast data, please contact LMC Automotive.

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