phaeton
05-03-2007, 01:48 PM
Volkswagen Commercial Vehicles consolidates its 2006 position in international markets and achieves new records
• Deliveries to customers, market shares and production increase
• Turnover, operating profit, net cash flow and net liquidity rise
In 2006, the Volkswagen Commercial Vehicles brand achieved new records and further consolidated its position in international markets. Along the way, there was a particular improvement both in shipment figures within the most significant markets and in the most important financial key figures.
Stephan Schaller, spokesman for the Board of Management of Volkswagen Commercial Vehicles, said: “In 2006, the Volkswagen Commercial Vehicles brand continued on its record-breaking journey and achieved the goals which it had set itself.”
Volkswagen Commercial Vehicles’ worldwide deliveries to customers increased in 2006 by 10% to 441,700 vehicles (2005: 401,600).
All individual vehicle series recorded growth compared to the previous year.
• Caddy up 8.7% from 125,700 vehicles in 2005 to 136,700 vehicles in 2006
• T5 series up 7.2% from 169,700 vehicles in 2005 to 182,000 vehicles in 2006
• LT/Crafter up 16.4% from 35,900 vehicles in 2005 to 41,900 vehicles in 2006
• Trucks & Buses up 4.2% from 35,500 units in 2005 to 37,000 units in 2006
• T2/Saveiro up 27.4% from 34,700 vehicles in 2005 to 44,200 vehicles in 2006
As a result of the higher-value series mix, the Volkswagen Commercial Vehicles Division achieved a14.3% increase in turnover from 7.297 billion euros in 2005 to 8.343 billion euros in 2006.
The brand used the increase of approx. 1 billion euros to finance one-off measures in order to make important preparations for the future. This included the market launches of the new Crafter and Constellation models, the withdrawal of the LT series, expenditure for future products, product cost reduction workshops to strengthen and sustain the competitiveness of the existing product range, and pension provisions.
After taking these one-off charges into account, operating profit increased by 5.4% from 95.6 million euros in 2005 to100.8 million euros in 2006.
Net cash flow and net liquidity are significant indicators for the further strengthening of the brand’s earning power. Net cash flow rose from 125 million euros to 409 million euros in 2006. Net liquidity rose from 387 million euros to 915 million euros in 2006.
Stephan Schaller commented: “These successes give us the power to continue to finance the future of the Volkswagen Commercial Vehicles brand from within the Division’s own resources.”
High levels of customer preference for vehicles from Volkswagen Commercial Vehicles are reflected in the registration statistics of the important western Europe and Germany markets.
Whereas the market for light commercial vehicles grew by a total of 2.8% in western Europe, the growth achieved by Volkswagen Commercial Vehicles was more than four times this level, at 11.9%. Market share grew correspondingly from 13.6% in 2005 to 14.8% in 2006. This means that
Volkswagen Commercial Vehicles was the second strongest brand for light commercial vehicles in western Europe for the year as a whole and, if the fourth quarter of 2006 is viewed in isolation, managed to achieve first place by the year-end.
The market-dominating role of the Hanover-based commercial vehicle manufacturer in Germany was stronger still. Here the light commercial vehicle market share grew by a total of 7.6% in 2006 – compared to Volkswagen Commercial Vehicles’ two-and-a-half-times faster growth of 18.0%. As a result, the company extended its market-leading position. Market share rose from 33.2% in 2005 to 36.4% in 2006.
In Brazil, the most important market in South America, Volkswagen Trucks and Buses achieved a hard-fought market share of 31.1% in the sector for trucks between 5 and 45 tonnes. This meant that the Brazilian subsidiary company achieved the position of market leader for the fourth year in a row. In addition, for the first time the company exported more than 10,000 vehicles into other emerging markets.
Harald Schomburg, Member of the Board of Management of Volkswagen Commercial Vehicles with responsibility for Sales and Marketing, said: “In 2006, we successfully continued the development of new international markets for our light and heavy commercial vehicles. We want to improve still further on this work in 2007.”
As a consequence of the brisk worldwide demand in 2006, production also reached new record levels, at 419,900 vehicles. Compared with 2005 (392,270), this represented growth of some 7.0%. In contrast, and despite the increased volumes, the brand’s workforce decreased by 3.7% to19,400 employees (previous year: 20,200).
The Hanover plant was especially in focus in 2006. This location was able to achieve enormous progress in 2006, growing production by 5.4%, reducing head-count disproportionately by 11.1% and increasing productivity by 8%. It remains dependent, however, on quick growth in international competitive capacity in all areas.
In this connection, Mr Schaller commented: “We want to exploit production capacity in Hanover fully by increasing the number of vehicle bodies from the present levels of 750 per day to around 1,100 per day.” The first preparations for this were achieved in 2006, both with the order from Porsche for the production of bodies for the Porsche Panamera and also the decision to build the robust pickup. The Hanover plant will increase its volumes without increasing employee numbers.
Stephan Schaller sees the way to achieve this as being through the optimisation of the process chains. He commented: “For us, the treasure lies buried in the processes. We have to dig it up in order to secure the future of the Hanover plant.”
Mr Schaller announced that the most important new product for the current year – commencing in the fourth quarter – would be the Caddy Maxi, a variant of the Caddy some 50 centimetres longer than the current model. He identified the economic target of the current financial year as being a focus on profit, linked to moderate growth, greater turnover via a higher-value series mix and a significant increase in operating profit.
• Deliveries to customers, market shares and production increase
• Turnover, operating profit, net cash flow and net liquidity rise
In 2006, the Volkswagen Commercial Vehicles brand achieved new records and further consolidated its position in international markets. Along the way, there was a particular improvement both in shipment figures within the most significant markets and in the most important financial key figures.
Stephan Schaller, spokesman for the Board of Management of Volkswagen Commercial Vehicles, said: “In 2006, the Volkswagen Commercial Vehicles brand continued on its record-breaking journey and achieved the goals which it had set itself.”
Volkswagen Commercial Vehicles’ worldwide deliveries to customers increased in 2006 by 10% to 441,700 vehicles (2005: 401,600).
All individual vehicle series recorded growth compared to the previous year.
• Caddy up 8.7% from 125,700 vehicles in 2005 to 136,700 vehicles in 2006
• T5 series up 7.2% from 169,700 vehicles in 2005 to 182,000 vehicles in 2006
• LT/Crafter up 16.4% from 35,900 vehicles in 2005 to 41,900 vehicles in 2006
• Trucks & Buses up 4.2% from 35,500 units in 2005 to 37,000 units in 2006
• T2/Saveiro up 27.4% from 34,700 vehicles in 2005 to 44,200 vehicles in 2006
As a result of the higher-value series mix, the Volkswagen Commercial Vehicles Division achieved a14.3% increase in turnover from 7.297 billion euros in 2005 to 8.343 billion euros in 2006.
The brand used the increase of approx. 1 billion euros to finance one-off measures in order to make important preparations for the future. This included the market launches of the new Crafter and Constellation models, the withdrawal of the LT series, expenditure for future products, product cost reduction workshops to strengthen and sustain the competitiveness of the existing product range, and pension provisions.
After taking these one-off charges into account, operating profit increased by 5.4% from 95.6 million euros in 2005 to100.8 million euros in 2006.
Net cash flow and net liquidity are significant indicators for the further strengthening of the brand’s earning power. Net cash flow rose from 125 million euros to 409 million euros in 2006. Net liquidity rose from 387 million euros to 915 million euros in 2006.
Stephan Schaller commented: “These successes give us the power to continue to finance the future of the Volkswagen Commercial Vehicles brand from within the Division’s own resources.”
High levels of customer preference for vehicles from Volkswagen Commercial Vehicles are reflected in the registration statistics of the important western Europe and Germany markets.
Whereas the market for light commercial vehicles grew by a total of 2.8% in western Europe, the growth achieved by Volkswagen Commercial Vehicles was more than four times this level, at 11.9%. Market share grew correspondingly from 13.6% in 2005 to 14.8% in 2006. This means that
Volkswagen Commercial Vehicles was the second strongest brand for light commercial vehicles in western Europe for the year as a whole and, if the fourth quarter of 2006 is viewed in isolation, managed to achieve first place by the year-end.
The market-dominating role of the Hanover-based commercial vehicle manufacturer in Germany was stronger still. Here the light commercial vehicle market share grew by a total of 7.6% in 2006 – compared to Volkswagen Commercial Vehicles’ two-and-a-half-times faster growth of 18.0%. As a result, the company extended its market-leading position. Market share rose from 33.2% in 2005 to 36.4% in 2006.
In Brazil, the most important market in South America, Volkswagen Trucks and Buses achieved a hard-fought market share of 31.1% in the sector for trucks between 5 and 45 tonnes. This meant that the Brazilian subsidiary company achieved the position of market leader for the fourth year in a row. In addition, for the first time the company exported more than 10,000 vehicles into other emerging markets.
Harald Schomburg, Member of the Board of Management of Volkswagen Commercial Vehicles with responsibility for Sales and Marketing, said: “In 2006, we successfully continued the development of new international markets for our light and heavy commercial vehicles. We want to improve still further on this work in 2007.”
As a consequence of the brisk worldwide demand in 2006, production also reached new record levels, at 419,900 vehicles. Compared with 2005 (392,270), this represented growth of some 7.0%. In contrast, and despite the increased volumes, the brand’s workforce decreased by 3.7% to19,400 employees (previous year: 20,200).
The Hanover plant was especially in focus in 2006. This location was able to achieve enormous progress in 2006, growing production by 5.4%, reducing head-count disproportionately by 11.1% and increasing productivity by 8%. It remains dependent, however, on quick growth in international competitive capacity in all areas.
In this connection, Mr Schaller commented: “We want to exploit production capacity in Hanover fully by increasing the number of vehicle bodies from the present levels of 750 per day to around 1,100 per day.” The first preparations for this were achieved in 2006, both with the order from Porsche for the production of bodies for the Porsche Panamera and also the decision to build the robust pickup. The Hanover plant will increase its volumes without increasing employee numbers.
Stephan Schaller sees the way to achieve this as being through the optimisation of the process chains. He commented: “For us, the treasure lies buried in the processes. We have to dig it up in order to secure the future of the Hanover plant.”
Mr Schaller announced that the most important new product for the current year – commencing in the fourth quarter – would be the Caddy Maxi, a variant of the Caddy some 50 centimetres longer than the current model. He identified the economic target of the current financial year as being a focus on profit, linked to moderate growth, greater turnover via a higher-value series mix and a significant increase in operating profit.