Winterkorn China Strategy Moving Forwards, Cheap Car Competing with Toyota

Profit from China becomes the most highlight on multinational company Volkswagen Automobile year 2013 financial report.

Sales of Volkswagen in Chinese market only take about 30.92% of its total sales around the world, but profit contribution far more than the figure. In financial year 2013, Volkswagen Automobile sales income is up to 197 billion euros, which has increased 2.2% over 192 billion sales of year 2012. Operation profit has increased slightly, which has hit the record high to 11.7 billion euros. The figure for year 2012 was 11.5 billion euros. The company has delivered 9.7 million cars around the world, which has increased 4.9% over 9.3 million sales of year 2012. Its Chinese market car sales have exceeded 3 million. Winterkorn, president of directors of board of Volkswagen Automobile Group management proves “Chinese joint venture profit has increased to 4.3 billion euros. The figure for year 2012 was 3.7 billion euros. ” Volkswagen has gained a lot of profit from Chinese market, but Winterkorn says that “sales income from Chinese market will not be taken into operation profit, because Chinese joint venture financial achievement is counted by equity method, which will not be integrated into group operation profit.”

As the boss of Volkswagen Automobile Group, Winterkorn deeply understand that the difficult of an automobile empire. He says “year 2013 is very challenge for European automobile manufacturers. Local automobile market and exchange rate do not favor the market.”Winterkorn tenure will be end at the end of year 2016. He does not have a lot of time to consider about the risk. The big examination of year 2014 is very close. Winterkorn says that “delivery volume of this year will exceed 10 million if no accident happened, which is 4 year ahead of original plan.”He may take competition with Toyota for top one sale around the world with Toyota. Jan this year, its opponent has announced the goal as well.

The next generation auto is the trump card for Winterkorn. As it known, this and next year, Volkswagen and its brands will introduce as many as 100 new cars, upgraded and successors into market, which include some star models, such as new Passat, Audi A4, Audi Q7, Porsche Macan, Porsche Cayenne hybrid version, new Skoda Fabia, Skoda Superb and Seat Ibiza.