Providers and Administrators in blue logo
MenuMENU
SearchSEARCH

Volkswagen Reports Record 2011 Profit on SUV Sales

February 24, 2012
3 min to read


Volkswagen AG, Europe’s largest automaker, reported record 2011 profit as demand increased for Audi and VW sport-utility vehicles.


Earnings before interest and taxes advanced 58 percent to 11.3 billion euros ($15.1 billion), the Wolfsburg, Germany-based carmaker said in a statement today. Profit matched the 11.3 billion-euro average estimate of 22 analysts surveyed by Bloomberg. Revenue gained 26 percent to 159 billion euros.

Ad Loading...


Chief Executive Officer Martin Winterkorn is adding factories in a bid to surpass General Motors Co. as the world’s biggest carmaker. VW, which delivered a record 8.27 million vehicles in 2011, aims for sales growth this year outpacing the market’s expansion. The German company has expanded production of SUVs such as the VW Tiguan and Audi Q5 to meet high demand in the U.S. and China, its largest market.


“There’s not a real positive surprise, so there might be some disappointment,” said Juergen Pieper, a Frankfurt-based analyst with Bankhaus Metzler. “The quality of the earnings is probably better, but more explanation is needed.”


The stock rose 10 cents, or 0.1 percent, to 139.25 euros in Frankfurt trading today. The shares have gained 20 percent this year, valuing the carmaker at 61 billion euros.


Volkswagen raised the dividend for 2011 by 35 percent to 3.06 euros per preferred share from 2.26 euros a year earlier. The dividend per common share for last year will be 3 euros. The carmaker will release more details on 2011 earnings on March 12.


Future growth may also come from pending mergers. VW is exploring options to combine with majority shareholder Porsche SE after scrapping plans last year for a merger because of legal tangles.

Ad Loading...


To avoid further delays, VW may drop the full merger and instead buy Porsche’s carmaking business, two people with direct knowledge of the situation said in November. VW already owns 49.9 percent of Porsche’s automaking business and holds an option to purchase the remaining 50.1 percent.


Volkswagen’s 2011 net income was lifted by a gain from the revaluation of the Porsche options. The figure more than doubled to 15.4 billion euros from 7.23 billion euros.


VW last year took a majority stake in German truckmaker MAN SE, raising its holding to 55.9 percent. VW has been seeking closer links between MAN and Soedertaelje, Sweden-based Scania AB, which it also controls, with a goal of forging a three-way truckmaking alliance. Such a tie-up may save as much as 1 billion euros in annual costs, VW has said.


VW’s net liquidity in 2011 dropped 8.6 percent to 17 billion euros because of 7 billion euros in spending on equity investments, including the increase in the MAN stake.


“VW generated a negative cash flow in the fourth quarter,” Michael Punzet, a DZ Bank analyst who recommends buying the shares, said in a note to investors. “In our view, this is mainly related to production cuts at year end and some investments at plants” for a new underbody that will be used as the basis for several vehicles.

Ad Loading...


Investments in property, plants and equipment in 2011 rose 40 percent to 7.93 billion euros, VW said today.


The maker of the Golf hatchback, VW’s best-selling vehicle, plans to spend a record 62.4 billion euros over the next five years on plants, models, research and development to underpin its global expansion. VW wants to hire more than 50,000 workers through 2018 as it targets more than 10 million autos per year.


Daimler AG this month forecast that operating profit this year will be “in the magnitude” of 2011’s 8.98 billion euros. CEO Dieter Zetsche has vowed to retake the luxury-car lead from Bayerische Motoren Werke AG after slipping last year to third behind Audi. Daimler predicts industrywide auto deliveries will rise 4 percent globally this year.

More Industry

Line graphic showing week-over-week wholesale auto price changes
Industryby StaffApril 22, 2026

Black Book: Weekly Market Update

Wholesale auto conversion rates dropped slightly as auction buyers proved picky last week, analysts observed.

Read More →
pavement with car and charger wrapped around it painted on
Industryby Lauren LawrenceApril 16, 2026

EV Battery Cycle Life at Risk

Fast charging of electric vehicles provides a solution for range anxiety, but it also poses a risk to battery cycle life due to increased temperatures, according to an EV supply chain data provider.

Read More →
Photo of exterior facade of Beardmore Chevrolet store
Industryby Hannah MitchellApril 14, 2026

Founding Family Sells Nebraska Dealerships

Expanding Midwest automotive group picks up three stores as part of the robust transaction activity early this year.

Read More →
Ad Loading...
Up-close photo of car battery
Industryby Hannah MitchellApril 13, 2026

Automaker Increases Parts Recycling

Stellantis is adding a third end-of-life vehicle dismantling facility to feed its growing reuse business sparked in large part by autos’ growing lifespans.

Read More →
Photo of white 2026 Ford Bronco on a sandy beach
Industryby Hannah MitchellApril 10, 2026

March New-Vehicle Sales Don’t Reflect War

Cox Automotive data shows Americans doubled down on big-is-better despite price increases. Slightly higher incentives helped fuel the demand.

Read More →
Photo from the rear of the XC60 SUV
IndustryApril 8, 2026

Volvo to Shift Some EV Production to U.S.

The automaker says its movement of some electric-vehicle work to the S.C. factory is part of a more tailored product focus. It also plans to add a new hybrid model to the plant’s itinerary.

Read More →
Ad Loading...
Bar graphic depicting week-over-week change across the various vehicle segments
Industryby StaffApril 7, 2026

Black Book: Weekly Market Update

Last week's wholesale automotive auction activity continued in a healthy mode, though buyers practiced selectivity.

Read More →
red car at a gas station being filled with gas. Efficiency Drives Demand. Providers and Administrators logo
Industryby Lauren LawrenceApril 7, 2026

Gas Prices Driving Consumer Interest

CarGurus’ first quarterly review of 2026 shows that affordability concerns are continuing to drive consumer purchases with a shift to more fuel-efficient options.

Read More →
Blurred photo of red car moving down a road
Industryby Hannah MitchellMarch 31, 2026

Automakers Have More Tricks Up Their Sleeves

JD Power analysts see auto retail faring this year’s storms well through various means, though it acknowledges conditions are challenging to accurately predict.

Read More →
Ad Loading...
background view of Washington D.C. with the capitol building and cherry trees. Text says 'What's the Cost?' with two diverging arrows and the Providers and Administrator's logo
Industryby Lauren LawrenceMarch 31, 2026

Insurance Rates Continue to Fall

Car insurance premiums have continued to decline so far this year, the overall national average settling at $138 per month in March, according to Insurify data.

Read More →