VW double profits

Profits have more than doubled at Volkswagen after the German manufacturer delivered a record number of vehicles last year.

VW reported a net profit of 15.8bn euros (£13.4bn; $21.2bn) for 2011, compared with 7.2bn euros in 2010, delivering more than 8.2 million vehicles, up nearly 15% on 2010.

The company plans to spend 62bn euros on new plants and models in the next 5 years, as well as on research and development and it will also hire 50,000 more staff in the next 6 years.

VW’s stated aim is to be the biggest carmaker in terms of sales and profits by 2018 and to help reach that target, it has developed a new platform that will serve as a base for its small and large cars.

“VW was keen over recent weeks to remind investors of the costs associated with future developments – in particular a new platform which should deliver cost savings of up to 20% in 2013 and beyond,” said Michael Tyndall, Auto Analyst, Barclays Capital.

“VW has previously highlighted the need to provision for price competition in Europe, which suggests the market in Europe continues to be difficult,” said Mr Tyndall.

Source: BBC News