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China boom drives record profits for Audi

Thursday, March 01, 2012 - 04:33

Mar. 1 - With more than than one in four of its luxury cars sold in China, VW's premium brand says its annual earnings should again top 5 billion euros this year.

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It's record profits are huge cash pile on reaching sales targets ahead of schedule. Not a bad place to be in for any company. But kind -- and all to make our -- keep that up this year for more I'm joined by chief executive reports -- -- why some people start in Germany. Mr. Obama thank you for joining us now -- you full trust steady profits for this year. But vehicle sales growth of 4% so effectively. Less profit help console why is that. So you know we had an excellent year in 2011. People lost a best and -- In an -- -- terms of business key figures. Still revenue was 44 billion euros. Profits operating profits by five point three billion euros. And profit trade off moment both present. So we are quite happy and -- we are quite ambitious also for the upcoming months what is happening in the markets we have another few products. And we think that still holds a during this year we can for -- that then the overall market which is expected as you mentioned. By around 4% above flood level. Okay but -- as I said their profitability would seem to be falling off from last year. Can you explain that. Nine with ice I think that we've last year was five point three billion euros. Audi presented accident results. And we said under the actual circumstances what we are seeing now with a soaring debt situation in Europe with some markets which a week in Europe. At least we will remain with the actual results. And maybe in summertime we aren't the FedEx starts to say how the business really is going on. In terms of growth rates we expect a -- grows so we are quite optimistic. Holidays are being -- what will you be able to maintain last year's operating margin. Although when I'm 12%. They should be our target of course. Yeah so -- optimistic. I'm optimistic yes. Okay I am as I mentioned in the introduction and you have a very many large cash pile almost sixteen billion euros. What -- you gonna spend on. We have to invest in the following years a loving new products. In the capacity enhancements. In new technologies. And you know we said that we wanna grow up 202015. To one point five million cars a year. This -- be -- -- was probably a little bit earlier so we have to invest heavily. We are investing heavily in our European. Locations in north -- -- a puzzlement Brussels in Spain in front is loving young -- area. Well we are increasing capacity we are investing in China heavily. Our targeted this until 2015. To rise up to 700000 units a year. And we are in BookMooch with respect to the North American plants where we tried to take a position during the first half of this year. You mentioned China there of course I'm in the last few days we have devoted directive to all the possible directive from Beijing about government official cars. Only being local brands and that's going to affect you how how concerned are you. You know. When we take positions -- we do that -- dollar joint venture partner with the first automotive works which is a Chinese company. And we are quite optimistic about the perspective in China. And when we see this structural obvious there's already in 90% or more are already private sector cars which are sold to private customers. So -- we keep running very fast we see that we will have some growth rates in front of us and we will do well that's. Okay how are you are you going to -- the government and China to change those plans. I'm not. You know we have an excellent part of its first automotive -- They are very close to the governments and when we are going to take some come in positions to increase capacity for example and push on. Owns of the Chinese partner sees growth rates coming and he's depressed and a private customer sector growing. So we are quite confident okay missed a -- but thank you very much. My finds that to IDC he'll superstar but -- -- -- we'll start in Germany pungent and give up this is militants.

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China boom drives record profits for Audi

Thursday, March 01, 2012 - 04:33