VW targets India, Russia; 2008 pretax profit to hit $6.92 billion

• IBTimes RSS
• Print
• E-Mail
• digg
• Del.icio.us

Volkswagen expects to start assembling Volkswagen and Skoda models at its new plant in Kaluga near Moscow by the second half of this year, but is aiming to eventually have a complete manufacturing presence.

"As in India, our objective in Russia is a full manufacturing process. Once the body shop, paint shop and assembly line are ready, we will be able to start manufacturing Volkswagen and Skoda models in Russia in 2009," he said.

Winterkorn said Porsche AG's decision to recently increase its stake in VW was a sign of "continued strengthening of the cooperation between the two companies. Porsche has faith in Volkswagen's potential."

Last month, the German luxury automaker raised its holding in Volkswagen to 31 percent in a move that it said was aimed at protecting VW from a hostile takeover. Porsche is now VW's biggest shareholder, followed by the German state of Lower Saxony, which holds nearly 20 percent.

A German law that limits Volkswagen shareholder voting rights to a maximum of 20 percent appears likely to be ruled unlawful by European Union judges, but these holdings would leave the automaker shielded.

The meeting came a day after the Wolfsburg-based company said it earned 740 million euros, or just over $1 billion, in the January-March period, compared with 327 million euros a year earlier.

Sales rose 5.1 percent to 26.6 billion euros, or $36.1 billion, from 25.3 billion euros.

Big gains in China and eastern Europe, and a modest gain in the United States, helped offset a dip in sales in Volkswagen's German home market after the country increased its value-added tax rate in January.

• 1
• 2