Volkswagen sees 25% profit in 2007

joint venture with First Automotive Works Corp. Volkswagen (FAW), one of the leading car partnerships in China and foreign expects earnings to increase this year of at least one quarter, helped by the efforts of active sales and cost reduction.

The company, FAW Volkswagen, in the northeastern city of Changchun, will grow "minimum profit of 25 percent this year since 2006, said Joachim Wedler, its vice president responsible finance. But Wedler did not reveal what the company, in which FAW holds 60 percent and Volkswagen to win 40 percent this year.

Weiming Soh, head sales, said it expects to sell more than 400,000 cars this year compared to 350,000 units last year. In the first five months, retail sales increased by 25.1 percent year on year to 173,218 units, landing in third place behind General Motors risk of SAIC Motor Corp and Volkswagen Association other SAIC. FAW Volkswagen June sales are expected to exceed 40,000 units, Soh said.

Companies in bold earnings and sales projections came amid blistering growth in the Chinese vehicle market. Sales of all vehicles in China rose 22 percent to 3.65 million units between January and May, from 2.12 million vehicles, according to industry data.

In the first four months, the total profits of the top 16 auto groups China reached 18.1 billion yuan, shot of by 51.3 percent. Wedler said FAW Volkswagen will use more local production of engines and spare parts to reduce costs. "We are shooting at a very high degree location have more financial power to beat the competition "he said, without elaborating.

In China, competition in the automobile market Tourism is becoming increasingly difficult. It is further reinforced by incentives to price increases and a series of product launches. Manufacturers 50 cars offered price cuts in the first five months of this year, according to data from FAW Volkswagen. A Tiecheng, general manager, said it plans to release at least two new models in the Volkswagen and Audi each year over the next five years to attract car buyers are increasingly sophisticated. Audi is the unit luxury car from Volkswagen.

The company will introduce a Volkswagen sedan next month MAGOTAN large. Its current lineup includes Volkswagen Jetta, Bora, Golf, Caddy and Sagitar as the Audi A6 and A4.

The Mangote Volkswagen, also known as the Passat, Run, Dasher, Santana and Quantum other territories, following the latest design philosophy in the first VW Phaeton luxury car. The style is a dramatic new departure from design B5.5 Passat. Although the new design with improved title = "VW> VW Parts somewhat controversial, sales have improved compared to previous model.

The version with four-wheel drive, transverse-engine platform dictated a switch from the central Torsen differential B5 Haldex multi-plate clutch. This change also changes the management closer to a front wheel drive car with better fuel economy and a more spacious interior.

The injection also Mangote stratified fuel in almost all petrol versions. They range between 1.6 and 3.2 L, but the multivalve 2.0 TDI is the most sought after in Europe. In the U.S., has a 200 horsepower 2.0 L turbocharged I4 as the base engine or a 280 hp 3.6 L VR6 engine as an upgrade and manual transmissions and six-speed automatic.

The company Wolfsburg-based car manufacturer is a leader in the world of cars. The company is also Germany's largest automobile manufacturer in Europe. Volkswagen also produces the Rabbit, New Beetle, New Beetle convertible, GTI, GLI, Eos and Touareg through approximately 600 independent retailers in the United States.

About the Author

Anthony Fontanelle is a 35-year-old automotive.buff who grew up in the Windy City. He does freelance work for an automotive magazine when he is not busy customizing cars in his shop.

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