VW Says Higher Costs to Damp Profit After Missing Estimates

Quote: ChinaRussiaFord Motor Co. (F) and PSA Peugeot Citroen. The second-quarter operating margin rose to 7.9 percent from 6 percent. Net income in the period more than tripled to 4.67 billion euros. Martin Winterkorn said in the statement. The company has forecast a 5 percent increase in global deliveries this year after selling a record 7.2 million cars, SUVs and vans in 2010. The German manufacturer sold more than 4 million vehicles between January and June for the first time. Ford Profit North AmericaJapan and rising raw material costs. Renault SA (RNO)France’s second-largest carmaker, said today that first-half operating profit slumped 19 percent to 630 million euros, burdened by sluggish demand for aging models such as the Clio compact. Strong orders for the Golf and Tiguan as well as Audi’s A6 sedan and SUVs, prompted VW to expand production in the third quarter. VW will run reduced shifts during a traditional three- week summer vacation at German plants in Wolfsburg and Emden and add Saturday shifts between Aug. 20 and Sept. 24. Production Boost Audi, the biggest contributor to VW group profit, suspended summer holidays at its main factory in Ingolstadt to maintain output of the Q5 SUV and has extended around-the-clock production of the Q7 SUV at a factory in Bratislava, Slovakia, until year’s end. VW plans to invest 51.6 billion euros in its automotive business over the next five years, with an additional 10.6 billion euros to be spent through its two joint ventures in China, the world’s largest auto market and VW’s top sales region. The company plans to hire more than 50,000 workers through 2018 as it targets deliveries of more than 10 million vehicles per year. MAN SE (MAN)Scania AB (SCVB), the Swedish competitor that’s 71 percent-owned by VW. A planned tie- up with Porsche SE is designed to double output by the sports- car maker to about 200,000 units...
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