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

 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.



Strategy 2018: Possible to attain interim sales target of eight million units in 2011

 In VW's Strategy 2018 unveiled in 2007, VW set the goal to become the world's leading auto manufacturer in sales volume as well as a world leader in quality, environment and profit. According to VW, these targets and goals have come within view thanks to the strong business results of 2010.

 The interim sales volume target is set at eight million units and ultimately ten million units in 2018. VW sold 7.2 million units in 2010 and 4.09 million units in the first half of 2011. If VW maintains the same level of sales in the latter half of 2011, the interim sales target of eight million units will come within reach in 2011.

 To reduce costs to attain the profit target, VW is advancing the plan to standardize three types of flexible platforms among various models and brands, which are referred to as the Modular Toolkit Strategy.

Targets of Strategy 2018 and results of 2010

  2010 results Interim targets 2018 targets
Group's sales volume (thousand units) 720 800 1,000
Automotive Division's EBIT to sales 7.1% Over 5% Over 8%
Automotive Division's CAPEX to sales 5.0% 6% 6%
Automotive Division's ROI 13.5% - Over 16%
Sources: VW Annual Report 2010, VW Press Release 2010/2/2, 2011/7/7, 2011/7/12 Presentation Material 2010/2/3
Notes: 1. The interim targets of Strategy 2018 were unveiled in February 2010 (VW did not specify when they would be attained).
2. VW recorded a sales volume of about 2.53 million units of the VW passenger car brands in the first half of 2011, up by 11.8% from a year earlier. The sales volume of the Audi brand was up by 17.7% to about 650 K units in the same period. With other brands combined, VW Group sold 4.09 million units in the first half of 2011.
3. EBIT stands for Earnings Before Interest and Taxes; CAPEX stands for Capital Expenditure.

 

VW's platform strategy: modular toolkits

VW will modularize parts and components including suspension parts, flat panels, engines, transmissions and air conditioners to use them across the brands and the segments. These are collectively called the modular toolkit strategy; through this, VW will establish the platform flexibly adaptable to various vehicle types by combining these modularized parts and components in several ways. Different models will share the modules at a content of 60 to 70%, while these modules will be designed to easily differentiate these models in appearance. VW will prepare three types of such flexible platforms, aiming to sell ten million units by 2018.
MLB MLB (Modularer Langsbaukasten / modular longitudinal toolkit) is a platform for the vehicles with longitudinal engines. It was employed for the Audi A5 launched in 2007 for the first time. Since then, the MLB has been used for a wide variety of models of A8, A7, A6, A4 and Q5.
MQB MQB (Modularer Querbaukasten / modular transversal toolkit) is a platform for vehicles with transversal engines. It will be mounted on the Audi A3, the VW Golf, the Skoda Octavia, and the SEAT Leon from 2012. Introducing the MQB, VW plans to reduce a cost per unit by 20% at maximum, and shorten the development period per model by 30% at maximum.
NSF NSF (New Small Family) is a platform for compact vehicles. It will be employed for compact vehicles based on the concept car Up! to be produced starting in 2011, and be sold under the three brands of VW, SEAT and Skoda.

Sources: VW "Driving Forward" Presentation Material 2011/5/19, Automotive News Europe 2010/9/1

 



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 set the targets for the China business for the medium term run: sales volume of two million units or greater, an EBIT of 6% or greater, and a ROI (Return on Investment) of 20% or greater. VW will invest 10.6 billion Euros between the years 2011 and 2015. VW had 2010 sales of 1.925 million units across the Group, up by 37.4% over the previous year. They were 1.107 million units in the January-June 2011 period, up by 16.4% on a year-on-year basis.

 To expand sales, VW will launch a total of 22 models for three years from 2011 to 2013, with12 models under the VW brand and five models under the Audi and Skoda brands, respectively.

 In addition, VW strengthened its production capabilities in China. For example, it built factories with an annual production scale of 300K units in Yizheng city, Jiangsu province, and Foshan city, Guangdong province. VW will establish the annual production capacity of three million units for the medium term (it had a 2010 production volume of 1.914 million units). It began to produce dual clutch transmissions (DSG: Direct-Shift Gearboxes) in Dalian in May 2010, which is the first time other than Germany.

 To underpin sales, VW also plans to double the number of distributors in China.

VW Group's plan to launch models in China

  2010
(For the reference)
2011 2012 2013 Total of 2011
to 2013
VW 6 4 5 3 12
Audi 0 1 2 2 5
Skoda 1 1 1 3 5
Total 7 6 8 8 22
Sources: Volkswagen in China 2011/5/26
Notes: 1. The models launched in 2010 were the Golf GTI, VW CC, Tiguan LWB, Polo G HB, Jetta A2 FL and Touran FL from VW, and the Octavia FL from Skoda.
2. Skoda jointly developed a compact sedan with Shanghai Automotive, a JV partner. It will be produced starting in 2013. Skoda will market the compact sedan in the Chinese market, with plans to export them.

VW's production capacity in China to be increased to three million units

VW plans to increase its production capacity in China to three million units for the medium term. To this end, VW will invest 10.6 billion Euros in China between 2011 and 2015. More specifically, VW will build new factories in Yizheng city, Jiangsu province (a joint venture with Shanghai Automobile) and Foshan city, Guangdong province (a joint venture with FAW). Both will have an annual production scale of 300K units (construction of both plants was approved by the Chinese authorities in June 2011). In addition, VW will increase the respective annual production capacities of the Nanjing Plant (a joint venture with Shanghai Automobile) and the Chengdu Plant (a joint venture with FAW) to 300K and 350K units, respectively.
Sources: VW Press Release 2011/6/28, Volkswagen in China 2011/5/26, Automotive News Europe 2011/4/25
Notes: 1. VW produced 1.914 million units in 2010 in China. Its annual production capacity is around 1.4 million units under the normal production schedule (250 operating days per year). The plant increases production by around 35% by increasing its operating days and streamlining the production system.
2. It is said that VW has plans to expand its annual production capacity to four million units by 2018. The new plants in Yizheng and Foshan--mentioned above--are designed to increase annual production to 600K units each. In addition, there are plans to build a plant in the southern part of China according to news reports.

VW produces dual clutch transmissions in China

Volkswagen Automatic Transmission Dalian Co. Ltd. began to produce seven-speed dual clutch transmissions (Direct-Shift Gearbox: DSG) in May 2010. This is the second plant which produces the DSGs, following the Kassel Plant in Germany. The Chinese plant has an annual production capacity of 300K units. VW plans to increase the annual production capacity to 600K units in stages.

Sources: VW Press Release 2010/5/11

Expansion of dealer stores in China

  2010 Midterm
VW 945 Over 1,600
Audi 170 Over 500
Skoda 190 Over 400
Total 1,305 Over 2,500

Sources: Volkswagen in China 2011/5/26

 



VW plans to invest 51.6 billion Euros over five years

 In November 2010, VW unveiled a plan to invest a total of 51.6 billion Euros over five years starting in 2011. It will spend 41.3 billion Euros in facilities and 10.3 billion Euros in R&D. It will input 57% of the capital spending of 41.3 billion in Germany.

 VW positions the US as an important market, with plans to triple the sales to one million units in 2018 from the 300K unit-level of 2010. For this purpose, VW spent one billion USD to build a plant in Chattanooga, Tennessee. It has been in operation since May 2011. In Mexico, VW also strengthen the annual production capacity of the Puebla plant to the 525K unit-level in July 2010.

VW to invest 51.6 billion Euros over 5 years starting in 2011

In November 2010, VW unveiled a plan to invest a total of 51.6 billion Euros over five years starting in 2011. It will spend 41.3 billion Euros for facilities, of which it will invest 57% in Germany. VW will appropriate 27.7 billion Euros for facilities including factories, development of new model vehicles, hybrid vehicles and motors. It will invest 13.6 billion Euros in quality assurance, parts' supply and IT. The German Company will also invest 10.3 billion Euros in research and development.

Sources: VW Press Release 2010/11/19
Note: The above investment amount does not include 10.6 billion Euros to be invested in China as planned during the same period.

Attempting to sell one million units in the US, VW to expand its production capacity in North America

US Chattanooga
Plant
In May 2011, VW began operations in its US plant in Chattanooga, Tennessee, which was built with a capital investment of one billion USD. It has an annual production capacity of 150K units, and produces the medium sedan Passat for the US market. The local content of parts is about 85%. VW set the Group targets at one million-unit level and a 6% market share.
Mexican Plant VW built a new manufacturing line and expanded the production capacity at the Puebla Plant in Mexico. The plant attained an annual production capacity of 525K units in July 2010. The new production line builds the Jetta. VW plans to invest one billion dollars in Mexico from 2011 to 2013, including preparation for production of the new Beetle.
New Engine Plant
in Mexico
VW announced plans to build a new engine plant in Silao, Guanjuato State, Mexico in September 2010. VW will start production in 2013, with plans to set up an annual production capacity of 330,000 engines. It will supply the products to the Puebla Plant in Mexico and the Chattanooga Plant in the US. The investment will amount to 550 million USD.
Sources: VW 2011 Annual General Meeting Presentation Material Part3, VW Press Release 2010/9/22, 2011/5/24,
Automotive News 2011/07/1, 11, Audi USA Press Release 2011/6/30
Notes: 1. Sales volume of VW brand products was 154K units in the first half of 2011 in the US, up by 22% over the same period last year. The Passat Sedan, Beetle and Jetta enjoyed strong sales. VW expects to have 300K unit-level sales of the same brand in 2011 (the recent record was 303K units in 2003). Sales volume of the Audi brand was 56K units in the same period, up by 15% year-on-year.
2. Audi has announced that it is planning to build a vehicle assembly plant, an engine plant and a transmission plant in North America (as of July 2011).

VW to double the production capacity of its South African Plant

VW announced in June 2010 to invest 50 million Euros in the Uitenhage Plant in South Africa to expand the production capacity of press parts. At the same time, it will invest 23 million Euros to build a distribution center in Centurion. VW already spent 500 million Euros in the same plant to double the annual production capacity to 120K units in 2010. The plant builds the Polo, Polo Vivo and the Cross Polo. VW plans to increase an export volume of the Polo from 30K units in 2009 to 75K units.

Sources: VW Press Release 2010/6/17

 



Cooperating with other manufacturers: VW acquires MAN to integrate businesses including Scania, while negotiating cooperation with Isuzu

 VW is intensifying its efforts in the commercial vehicle business. For starters, VW purchased the majority stake of MAN, a German commercial vehicle manufacturer in July 2010. It has already initiated integration of commercial vehicle businesses, including its own Scania, a Swedish commercial vehicle manufacturer. In addition, to develop its commercial vehicle business in Asia, VW is negotiating cooperation with Isuzu.

 On the other hand, the cooperation with Suzuki, in which VW takes a 19.9% stake, has been delayed. Suzuki intends to take a couple of years to prudently progress in the tie-up.

 In June 2011, VW and GAZ of Russia agreed to consigned production at an annual volume of 110K units by 2019. VW plans to increase sales in Russia by 2018 by approximately three times from the 2010 level to 360K units.

Purchasing a majority stake of German commercial vehicle manufacturer MAN, VW to consolidate MAN, Scania and VW

VW announced on July 4, 2011 that it acquired a 55.9% stake on a voting share basis as a result of a buyout offer for the German commercial vehicle manufacturer MAN. It allows VW to consolidate three companies including the Swedish commercial vehicle manufacturer Scania (in which VW has a 71.8% stake on a voting share basis). VW will attempt to synergize procurement, R&D and production through the consolidation.
VW raised its stake in MAN from 29.9% to 30.47% on a voting share basis on May 9, 2011. German law requires any companies which have 30% voting right in other companies to make a mandatory offer. VW scheduled the takeover bidding period from May 31 to June 29.

Sources: VW Press Release 2011/5/9, 7/4
Note: MAN has previously made a hostile takeover bid for Scania in January 2007, and holds a 17.47% stake in the company on a voting share basis (however, this takeover was withdrawn in the same month).

VW begins negotiations over partnership with Isuzu

In a press conference for the business results in the first quarter of 2011, VW admitted that it was in negotiations over a partnership with Isuzu, the Japanese commercial vehicle manufacturer. Isuzu also admitted that they were negotiating tie-ups in heavy trucks, pickup trucks, diesel engines and so on. Some news media reported that VW would take a stake in Isuzu, although both of them denied it as of today.
GM held a stake in Isuzu for three decades, but dissolved the alliance in April 2006. In November of 2006, Toyota took a 5.89% stake in Isuzu. Since then, Toyota and Isuzu have jointly developed small diesel engines; however, the joint development has been put on ice since December 2008.

Sources: Nihon Keizai Newspaper 2011/4/28, 5/12

Cooperation with Suzuki falls behind schedule after the acquisition of a 19.9% stake

VW admitted in its shareholders meeting of May 2011 that cooperation with Suzuki has fallen behind schedule more than expected after its acquisition of a 19.9% stake in the Japanese company. VW and Suzuki signed the comprehensive partnership agreement in December 2009. VW intends to maximize its partnership with Suzuki for the small car market in India as well as the sectors of procurement,  powertrains and electric vehicles.
However, in Suzuki's shareholders meeting of June 2011, Mr. Osamu Suzuki, Chairman and CEO of Suzuki, said that Suzuki would prudently progress cooperation with VW by taking two or three years so that they can define their relationship as a partnership of equal independent companies (Note 1). In July of 2011, Harayama Executive Vice President of Suzuki said that Suzuki would not progress in their partnership unless they were equal partners.
Sources: Prof. Dr. Martin Winterkorn Speech at the Annual General Meeting on May 3, 2011, VW Press Release 2010/8/9, Suzuki Press Release 2011/6/26, media reports
Notes: 1. There is context to his statement. VW positioned Suzuki as one of "significant group companies" in its 2010 annual report. This statement drew opposition from Suzuki, because it is contrary to the statement in the fundamental comprehensive partnership agreement signed in December 2009; "..., both companies will establish a cooperative relationship while respecting each other's independence as a stand-alone entity."
2. VW completed the buyout of Italdesign Giugiaro S.p.A., an industrial design firm, in August 2010. It renders designing for Suzuki. The design firm will work exclusively for the VW brand from now on. According to the firm, the ongoing design projects of other companies will be continued or discontinued according to each client's decision.
3. Suzuki in June 2011 announced it would be supplied with 1.6-liter diesel engines from Fiat. It plans to install the engines on its new model vehicles, which will be produced in Hungary starting in 2013. Both companies have been in a partnership over diesel engines since 2006.

VW outsources production to Russian GAZ

VW and the Russian GAZ Group signed a consignment production agreement in June 2011, which will expire in 2019. GAZ Group will produce the VW Jetta, Skoda Octavia and Skoda Yeti for the Russian market at its Nizhny Novgorod Plant. VW will produce the Yeti by the end of 2012. It plans to have an annual production of 110K units. VW will invest 200 million Euros in the plant to strengthen its production capacity.
VW positioned Russia as one of the core markets in its Strategy 2018. VW plans to expand the production of the Kaluga Plant which produces the VW Polo Sedan etc. with an annual production capacity of 150K units. VW aims to increase sales in Russia to 360K units by 2018. They were 134K units in 2010, up by 40.2% over the previous year.

Sources: VW press Release 2011/6/14, Financial Times 2010/10/19

 



VW likely to postpone the merger of Porsche after 2011

 In the press conference in March 2011, Mr. Winterkorn, CEO of both VW and Porsche SE, a shareholding company of Porsche, mentioned the possibility of a merger of VW and Porsche to fall behind the initial schedule (within 2011), because there were tax and legal problems as well as the law suits in Germany and the US (he also mentioned this previously in October 2010). Meanwhile, the consolidation had progressed on a technical level--the director of the VW Group's powertrain R&D department was assigned to direct the Porsche AG R&D department.

Effects from merging with Porsche

Growth opportunities
from the merger
* VW will increase sales of the Porsche brand from the current 100K-unit level to 150K units over the medium term, and 200K units by 2018.
* It will increase the product lineups of the Porsche brand.
* It will develop a 'modular toolkit' for luxury brands.
* VW will maximize the sales network of Porsche to sell VW Group's high-end brand vehicles.
Future possibilities
through the merger
* Over the long term, VW will improve operating profit by about 700 million Euros per year.
* VW will maximize the sales network of VW to sell Porsche brand vehicles.

Sources: VW "Driving Forward" Presentation Material 2011/5/19

Timeline of merger

First phase
till 2009
In November 2009, VW and Porsche signed the merger agreement of two companies on the initiative of VW.
In December 2009, VW acquired a 49.9% stake in Porsche AG for 3.9 billion Euros.
Completed
Second phase
from 2010 to 2011
In March 2010, VW raised 4.1 billion Euros by issuing 65 million preferred stocks. Last December, VW was approved to issue 135 million preferred stocks by 2014, by the general shareholders meeting. Completed
On March 1, 2011, VW acquired Porsche Holding Salzburg, an automotive sales company, for 3.3 billion Euros.
On March 29, 2011, Porsche SE raised 4.89 billion Euros by issuing ordinary and preferred stocks. This allowed Porsche SE to reduce the net debt, which ballooned in connection with buying VW stocks in January 2009, to 1.5 billion Euros.
Third phase
from 2011
VW will merge Porsche. After 2011
If the merger fails, Porsche SE will execute the put option for Porsche AG stocks owned by Porsche SE, or otherwise, VW will execute the call option. Executable from
November 2012
to January 2015

Sources: VW Press Release 2010/3/26, VW Annual Report 2010, Porsche SE Speech on 17 March 2011, Bloomberg 2011/2/24
Note: Holding company Porsche SE has a 50.7% stake in VW (on a voting share basis). VW and Porsche SE have a 49.9% and 50.1% stake, respectively, in Porsche AG via Zwishenholding, an intermediate holding company. Ultimately, VW and Porsche will be merged under one holding company.



VW to promote development and launch of EVs

 VW plans to proactively develop and launch electric-powered vehicles. VW launched its first hybrid vehicle, i.e. the VW Touareg Hybrid in 2010, followed by the full-sized models of Audi Q5 HEV and Audi A8 HEV. Starting in 2012, VW will launch the HEV version small or medium-sized models of the Jetta, Golf and Passat.

 Among the EVs, the Up! Blue-e-motion will debut in 2013. Starting 2011, VW will conduct demonstrations with multiple brands. Among PHEVs, VW presented the one-liter car, XL1 Concept, with fuel consumption of 0.9 liter/100 km in the Qatar Motor Show held in January 2011. VW is carrying out an over-the-road test in Germany with the research vehicle Golf Variant twinDrive.

VW's Plan to launch HEVs and EVs

  2010 2011 2012 2013 2014-
HEV Touareg HEV A8 HEV
Q5 HEV
Jetta HEV Golf HEV
Passat HEV
 
EV       Up! Blue-e-motion
Golf blue-e-motion
Jetta blue-e-motion
Lavida blue-e-motion
Sources: VW "Driving Forward" Presentation Material 2011/5/19, "The Future of Cars and Powertrains" 2011/6/8
Notes: 1. The E-Up!, a concept vehicle of Up! Blue-e-motion, has a 60-kW and 21-Nm motor at maximum, a 18-kWh lithium-ion battery, and a 130-km single charge range at maximum.
2. The research vehicle Golf blue-e-motion has an 85-kW and a maximum 270-Nm motor, a 26.5-kWh lithium ion battery, and a 150-km single charge range at maximum.

One-liter car XL1 concept and research PHEV

XL1 Concept The XL1 Concept is the third generation of one-liter PHEV concept car, which was exhibited in the Qatar Motor Show in January 2011. Gas consumption per 100 km is 0.9 liters in the EU combined fuel consumption mode. The car may be commercially produced starting in 2013. The XL1 concept is a PHEV, which has a two-cylinder 0.8-liter turbo direct-injection diesel engine and motor, seven-speed DSG and a lithium ion battery. It has a light carbon fiber-reinforced plastic body, which has a high aerodynamic performance at a Cd of 0.186.
Golf Variant
twinDrive
The Golf Variant twinDrive is the research vehicle, twenty of which are subjected to the over-the-road test with the German Environmental Ministry (by June 2012). VW plans to launch the PHEV between 2013 and 2014. The Golf Variant twinDrive has an all-electric range of 57 km at maximum, and a gasoline engine provides for a total range of 900 km. Of 20 vehicles, ten are equipped with lithium ion batteries made by a German-US joint venture GAIA (a capacity of 11.2 kWh), while the other ten come with Li-ion batteries made by SB LiMotive, a joint venture of Bosch and Samsung (a capacity of 13.2 kWh).

Sources: VW Press Release 2011/1/26, 6/28

 



Sales volume and results in the January-March period of 2011 again mark record high

 VW had a record setting sales volume of 7.203 million units in 2010, up by 13.7%. VW had sales of 126.87 billion Euros up by 20.6% and an operating profit of 7.14 billion Euros, up almost quadruple, both of which were record setting as well.

 VW aims to post record results for its sales volume, sales and operating profit in 2011, which will surpass the record-setting levels of 2010.

 In the period of January-March 2011, global sales were 1.988 million units, up by 14% over the same period of last year, sales were 37.47 billion Euros, up by 30.8%, and operating profit was up by 3.5-fold to 2.91 billion Euros. Every item drastically exceeded each of their 2010 record-setting levels.

VW's global/regional sales

(Thousand units)
  2007 2008 2009 2010 January-March
2010 2011
Global sales 6,190 6,257 6,336 7,203 1,744 1,988
Western Europe 3,112 2,989 2,918 2,903 758 807
Central and Eastern Europe 497 560 385 429 85 112
North America 531 503 468 550 122 144
South America 744 803 826 908 219 225
Asia-Pacific 142 148 150 221 49 74
China 910 1,024 1,401 1,925 457 549
Other regions 254 228 189 268 54 78

Sources: VW Annual Report 2010, Interim Report Q1 2011

VW Group's consolidated results

(Millions of Euro)
  2007 2008 2009 2010 January-March
2010 2011
Production (thousands of units) 6,213 6,347 6,055 7,358 1,744 1,988
Sales Revenue 108,897 113,808 105,187 126,875 28,647 37,470
Operating Profit 6,151 6,333 1,855 7,141 848 2,912
Profit before tax 6,543 6,608 1,261 8,994 703 2,223
Profit after tax 4,122 4,688 911 7,226 473 1,712

Sources: VW Annual Report 2010, Interim Report Q1 2011
Note: Revenue and Profit include those of Financial Service Division.

VW's results by brand

(Thousand Units; millions of Euro)
  VW
brand
Audi
brand
Skoda
brand
SEAT
brand
Bentley
brand
Commer-
cial
vehicle
Scania China Others Total
Sales
volume
2007 3,664 1,200 620 411 10 427 930 (1,070) 6,192
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
Jan-Mar. period
of 2010
945 316 142 91 1 73 12 409 (288) 1,703
Jan-Mar. period
of 2011
1,077 374 181 93 1 108 19 512 (335) 2,031
Sales 2007 73,944 33,617 8,004 5,899 1,376 9,297 (33,385) 98,752
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
Jan-Mar. period
of 2010
18,631 8,260 2,028 1,307 161 1,581 1,723 (8,124) 25,567
Jan-Mar. period
of 2011
23,042 10,514 2,691 1,382 197 2,145 2,414 (8,589) 33,796
Operating
income
2007 1,940 2,705 712 8 155 305 (631) 5,194
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
Jan-Mar. period
of 2010
416 478 100 (110) (36) (16) 214 (366) 680
Jan-Mar. period
of 2011
1,060 1,115 187 (12) (25) 92 376 (169) 2,624
Sources: VW Annual Report 2010, Interim Report Q1 2011
Notes: 1. Sales volumes represent whole sale volumes. VW brand represents VW passenger cars. Commercial Vehicle represents all brands of commercial vehicles. China means the Chinese business. The data in Others show adjusted values among inter-group transactions.
2. Data in Scania show the consolidated results after June 22, 2008. The figures include those of the Financial Service Division of Scania.
3. Others include the data of Porsche Holding Salzburg from March 1, 2011.
4. Equity method income data of two Chinese joint ventures are 294 million Euro in 2007, 395 million Euro in 2008, 981 million Euro in 2009 and 1,907 million Euro in 2010.

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