Volkswagen's Net Profit For 2010 Exceeds Expectations
Volkswagen is well on their way to becoming the world’s largest automaker by 2018, as the company has officially topped Ford to become the world’s most profitable automaker last year.
The Volkswagen Group pulled in $9.42 billion in net income in 2010, besting the analysts’ expectations and helping them gain some ground in their bid to overtake Porsche and turn them into a normal, yet expensive car brand.
“Fiscal year 2010 was the best year in the history of the group. Volkswagen already provided impressive proof of its robustness during the crisis and our group is now following that up by leading the field during the economic recovery,” VW CEO Martin Winterkorn said.
Volkswagen’s astonishing net gain, which was around 6.82 billion euros, best Ford’s 6.56 billion and Toyota’s 6 billion. Even General Motors’ proved to be cannon fodder, as they only produced 4.7 billion last year. VW still trailed Toyota in terms of overall sales, but with this new record income, VW is in a unique position that many analysts didn’t expect.
Many thought that Volkswagen would only net 4.96 billion euros, a number that the automaker triumphantly bested by more than 2 billion.
This massive sales increase was due in part to the increase of sales in China. VW’s sales in China were up 37 percent last year. The automaker also closed the gap in Brazil, India and Russia to Toyota, who currently dominate in those markets.
Currently VW has nine plants in China and they have stated that they would like to add two more to help double annual production to 3 million vehicles every year. GM is also in a good position in China, but VW has a fairly good start.
Volkswagen entered the Chinese market when it was nothing to write home about 30 years ago. It was the first foreign automaker to enter to the country.
Still, despite this recent revelation, VW still has a ways to go before they take over the number one spot.