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Volkswagen to Break-Even in 2009 and Reports Second-Quarter Profit Increased

Europe's largest automaker Volkswagen AG isfirst  on the capacity utilization in Mexico.
hoping to obtain break-even for its North
American market by 2009 or earliest that isMr. Osterloh also explained that it is
according to Volkswagen's Chief Laborimportant for the company to produce car
Representative Bernd Osterloh in an interviewmodels for the US market if it wants to
with  Dow  Jones  Newswires  last  Friday.produce sales volume. He said models that
should be made must be similar to the size of
Osterloh was quoted saying, "I hope this isthe Passat or the Jetta. And if in case the
achieved." He also admitted that it's goingplan really do pushed through then models
to be hard target to achieve. He furtherthat are especially designed for the US
added that in order to reach such goal theremarket could be officially launched before
should be an increase in productivity and at2010.
the same time there should be a reduction in
the purchasing costs. He also suggest for theVolkswagen  Second-Quarter  Profit  Increased
purchasing  of  parts  locally.
In other news, Volkswagen has recently
Mr. Osterloh has said that the North Americareported that its second quarter profit
would become the central market for theincreased by 16 percent attributed to new
company in the coming years. And inmodels of both the Skoda and Audi units. The
accordance to such plan, Europe's largestGerman automaker has also obtained a rise in
automaker and producer of Volkswagen busnet income that closes to 1 billion euros or
parts , Volkswagen has already sent its best$1.38 billion from previous 859 million euros
man for the North American market, Stefanin the year 2006 that is according to the
Jacoby, who would assume the position ofmedian estimate of 11 analysts that takes
Chief Executive of Volkswagen of Americapart of the survey conducted by Bloomberg
starting  this  coming  September  1,  2007.News.
Mr. Osterloh said that he is not yet awareAside from the 11 analysts there were also
whether production would resume in the Unitedbanks that participated in the survey namely
States with the construction of the newBankhauz Metzler, M.M. Warburg, Societe
factory. But one thing is for sure thatGenerale, JPMorgan, Morgan Stanley,
before the Wolfsburg-based automaker givesUnicredit, UBS, DZ Bank, Bankhaus Lampe, ABN
out the go signal, there would be a studyAmro and Exane BNP Paribas.



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