BBC Homepage World Service Education
BBC Homepagelow graphics version | feedback | help
BBC News Online
 You are in: Business
Front Page 
World 
UK 
UK Politics 
Business 
Market Data 
Economy 
Companies 
E-Commerce 
Your Money 
Business Basics 
Sci/Tech 
Health 
Education 
Entertainment 
Talking Point 
In Depth 
AudioVideo 

Tuesday, 20 February, 2001, 17:49 GMT
VW reports record profits
Volkswagen beetle, old model
Volkswagen's beetles have a cult following
Volkswagen - maker of the much-loved Beetle and the revered Bentley - has seen its net profits soar by 144.2% to 4.032bn Deutsche Marks (2.062bn euros, 1.295bn).

Pre-tax profit rose 37.5% to 6.784bn marks against 4.933bn marks the previous year.

And Volkswagen is continuing to expand its UK operations, aiming to boost its production from 2,000 to 9,000 cars over the next five years.

The news comes at a difficult time for the global car industry which is suffering from over-capacity, and when competitors such as Daimler Chrysler and Ford are slashing production estimates.

Efficiency boost

Volkswagen admits that reduced demand in the wider car industry means that it must cut costs and raise efficiency next year.

But it expects its new range of cars to reap increased profits in 2001 nevertheless.

"We expect a qualitative improvement in earnings, above all due to the success of our new range of products, for example the new Passat and the new A4 Audi," said the company in a statement.

Shareholder bonus

During the year, Volkswagen's global production grew by 6.2% to 5,156,000 cars while its workforce expanded by 5.9% to 324,402.

In the UK, the production of the new Mid Size Bentley (MSB) model at the plant in Cheshire will create 700 jobs over the next two to three years.

Volkswagen's share price rose on the back of the positive results, climbing 1.61 euros to 58.91 euros at 1730 GMT.

Search BBC News Online

Advanced search options
Launch console
BBC RADIO NEWS
BBC ONE TV NEWS
WORLD NEWS SUMMARY
PROGRAMMES GUIDE
See also:

06 Jul 00 | Business
Volkswagen slapped with record fine
25 Jan 01 | Business
What's left of the UK car industry
05 Feb 01 | Business
Vauxhall, Ford boost UK car industry
Internet links:


The BBC is not responsible for the content of external internet sites

Links to more Business stories are at the foot of the page.


E-mail this story to a friend

Links to more Business stories