VW aims for sales of 10 million units by proactive investment in Germany, China and North America
While acquiring MAN to consolidate with Scania
2011/08/03
- Summary
- Strategy 2018: Possible to attain interim sales target of eight million units in 2011
- China: VW to market 22 models over three years, and establish annual production capabilities of three million units by investing 10.6 billion Euros
- VW plans to invest 51.6 billion Euros over five years
- Cooperating with other manufacturers: VW acquires MAN to integrate businesses including Scania, while negotiating cooperation with Isuzu
- VW likely to postpone the merger of Porsche after 2011
- VW to promote development and launch of EVs
- Sales volume and results in the January-March period of 2011 again mark record high
Summary
VW has set its annual sales target for 10 million units in its mid-term plan Strategy 2018, aiming to be a leader in the areas of finance and environment. For this purpose, VW will invest more than 60 billion dollars over five years by 2015 in Germany, China and North America. The company plans to establish the annual production capabilities of three million units in China and aims for sales of one million units in the US. At the same time, it will make an investment in the development and launching of electric powered vehicles.
In addition, VW has taken the majority stake in the German commercial vehicle manufacturer MAN for so that it may integrate its commercial vehicle business, which includes Scania. VW is also in negotiations to form a partnership with Isuzu, the Japanese commercial vehicle manufacturer. The merger with Porsche is likely to fall behind the originally-scheduled 2011; and, cooperation with Suzuki was delayed after the acquisition of a 19.9% stake.
In the January-March 2011 period, VW had global sales of 1.988 million units, up by 14% on a year-on-year basis, sales of 37.47 billion Euros, up by 30.8%, and its operating profit was 2.91 billion Euro, an increase of 3.5 times. All the records drastically improved upon those from the year earlier, when they had the highest ever record.
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