Volkswagen Post Declining Q1 Results, but Does Not Panic

Unlike Daimler, Volkswagen seems to be quite relaxed with its financial results, perhaps too relaxed. The company announced that in the first three months of the year it delivered 1.40 million vehicles worldwide, compared 1.57 million in 2008.

Though admitting that the overall market contracted by more than 20 percent, the Volkswagen Group recorded a decline of only 10.7 percent. As a result, its global market share rose to 11.0 percent compared to 9.7 percent in 2008.

Volkswagen adds that the 24.1 percent year-on-year production decrease to 1.25 million compared to 1.65 million vehicles in 2008 was planned and didn't come as a surprise.

In other financial details, sales revenue declined by 11.2 percent to €24.0 billion (€27.0 billion in 2008) in the first quarter due to volume-related factors, while operating profit amounted to €312 million (compared to €1,311 million in 2008).

“We further increased our global market share in the first quarter thanks to our new model rollout and strong presence in the key sales markets”, said Prof. Dr. Martin Winterkorn, Chairman of Volkswagen Aktiengesellschaft’s Board of Management on Wednesday at the presentation of the interim report.

“Of course we, too, are not immune to the crisis. However, with its nine strong brands and sound financial position, our Group is robust. This allowed the Group to reinforce its market position in the first quarter, and that remains our goal for the year as a whole”, he added.