Volkswagen Seeing a Higher 2008 Profit

It should be noted that last year Volkswagen hascosts.
shed 6% off its workforce and reached aHans Dieter Poetsch, Volkswagen CFO said during
five-day week agreement with its Germanthe annual conference, the 2006 profit growth
workers. Europe's largest automaker and makerwas the result of the euro climbed against the
of Volkswagen tail lights, is planning to roll out 28Japanese yen putting it in a "massive competitive
new models of which includes a new version ofdisadvantage" against the like of Toyota Motor.
the Golf which would hopefully drive sales growthHe also stated that the 2007 operating profit
up.before special items will rise, stressing the fact
According to Martin Winterkorn, "Innovativethat the company has already sold 8% more
products, competitive costs, productive processesvehicles just for the first two months of this year
and an aggressive position in the markets willcompared to the same period in 2006.
enable us to put the company on an even betterEurope's largest automaker has also said that
footing and demonstrate that we are wellrevenue will improve more than the 12% growth
equipped to master the future."or 105 billion euros that company has obtained last
Volkswagen is also expecting for a 2008 pretaxyear. Volkswagen will focus on building its market
of at least 5.1 billion euros or $6.7 billion USD. Thein Russia and India for this year. Actually such
German-based automaker also said last monthforecast was made during the time of former
that it gained in 1.79 billion euros in profit beforeVW CEO Bernd Pischetsrieder whom Chairman
tax from its 2006 operations. But according toFerdinande Piech pressured to step down. He was
analysts by Thomson Financial, the 2008 pretaxreplaced by Martin Winterkorn who is known as
profit for Volkswagen will reach 4.83 billion eurosthe favorite protégé of Chairman
only.Piech.
Last Friday Volkswagen shares have increased byAfter the ousting of Pischetsrieder, Piech have
2.7% in late afternoon trading. In the year 2006collaborated with his union allies that sits on the
VW's operating profit before special items havesupervisory board to employ cost-cutting
improved by 52% to 4.4 billion euros and aftermeasures which many analysts sees won't be
increasing selling 9% more than last year and addsustainable.
to it the significant reduction in its production