Who To Buy Next? Volkswagen Triples Profits Now Sitting On A Massive Cash Pile

Who To Buy Next? Volkswagen Triples Profits Now Sitting On A Massive Cash Pile

Did we mention that there is a remake of the economic miracle in Europe going on? Despite tanking car sales, despite daily stories about near bankrupt EU-countries, European manufacturers are in high gear. Did we mention that despite taking sales at home, Volkswagen delivered 16 percent more units to customers in the first six months of 2010? One would think that might have some bearing on VeeDub’s financials. It sure did.

In the first half of 2010, Volkswagen more than doubled its operating profit to €2.8b (€1.2b in H1 2009). But wait, this figure does not include the operating profit of €804m from the joint ventures in China. That number jumped from €294m in the same period of 2009. All in all, VW more than tripled its profit before tax to €2.6b (€0.8b H1 2009). Once taxes are paid, a tidy profit of €1.8b ($2.35b) will remain in Volkswagen’s books, a nice jump from €0.5b in the same period of 2009.



 

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IamEvilHomerIamEvilHomer - 7/29/2010 1:38:29 PM
0 Boost
they should make a play on BMW before they merge with MB


theoptimisticpessimisttheoptimisticpessimist - 7/29/2010 2:17:53 PM
+1 Boost
Yes because BMW has no cash reserve and the Quandt family is so ready to sell(sarcasm)

What a dumb ass comment.


0to600to60 - 7/29/2010 3:18:39 PM
+5 Boost
mitsubishi could use the help!


mini22mini22 - 7/29/2010 3:37:55 PM
+2 Boost
I think VW at one point will get with Marchionne of Fiat and perhaps
buy Alfa Romeo. They could then scuttle Seat which has been a money loser for them.Further they could continue to use VW platforms with
Italian bodies and perhaps Italian engines.Another posibility would be to develop a lower cost RWD platform with Porsche for a lower cost 3 series and 5 series competator. Or they could do a bit of both.FWD for the smaller cars (Mito and Giulietta) and RWD for the 159/Brera and 166 replacements.Porsche would then have a platform for a for a Mercedes C class and E class competator along with BMW.Fiat can keep it's C Evo platform for Fiat,Chrysler and Lancia.Not that any of this will happen but I think there is room in VW's portfolio to make this happen if they really wanted to do this.Unlike Fiat which still has money problems VW could easily finance the platforms and finally make Alfa into the Marquee it deserves to be.


I95SPEEDINGTICKETSI95SPEEDINGTICKETS - 7/29/2010 7:09:44 PM
+1 Boost
Man

I was so agreeing with you until i got to the Italian Engines bit.

The best Alfa Vehicles IMHO would be those with German Chassis, Running Gear including Powerplants but Italian Body.


LexSucksLexSucks - 7/29/2010 5:56:45 PM
-2 Boost
Message to VW. How about you build a decent car. VW's current lineup is trash.


mini22mini22 - 7/29/2010 9:03:48 PM
+5 Boost
I95Speedingtickets-Point taken and most probably they would not have a need for Italian powerplants. However if this does come to pass VW is going to have to figure out how to make it's 4 and 6 cylinder engines sound more Italian.Seat is nothing more than rebadged VW with cheaper interior plastics and less sound deadining. If VW really values the Alfa brand,its history and heritage then they will need to be aware that Italian engines sound unique to the rest of the world. VW has been successful with Lamborghini but Alfa is going to be a more mainstream marque. Anyway I think if Alfa does not improve under Fiat then Marchionne will be looking to sell it off.I think VW would really love to have it.I don't think this will happen for a few yrs as I beleive Marchionne wants to see how Alfa does in the US when they come back in 2012.


I95SPEEDINGTICKETSI95SPEEDINGTICKETS - 7/30/2010 4:42:29 PM
+1 Boost
You are correct about the Spirit of the Italian Engines.

I just have this innate distrust of the durability of the Italian engines { Non-Supercar Engines} when compared to the German ones.

Can't you just imagine the Current 159 with Rear-Biased Quattro Transmission and Solid German door closing Thunk ?


mini22mini22 - 7/31/2010 6:37:07 PM
+1 Boost
Actually the current crop of engines in the Mito and Giulietta are not that bad with their multiair activation. But realistically I don't think Fiat would give that technology to the Germans when they are going to be using them for all the upcoming medium to small new Chrysler offerings. I honestly think that Marchionne is more interested in fixing Chrysler then trying to shore up Alfa. If Alfa does not at least double or triple sales in the next 2 to 3 yrs he will want to unload it so he can just concentrate on Chrysler,Fiat,and Lancia. The problem with Alfa is simple. Do to it's own heritage of making sporting vehicles doing only FWD or AWD is not helping it's cause. Back in the 60's 70's and early 80's(the coupes only), Alfa was on a more equal playing field with BMW,Porsche,and Audi. Unfortunately Fiat bought them and transformed them into rebadged Fiats. This has really hurt them as a Marquee and has not allowed them to compete with the Germans. Alfa should be strictly RWD with the available option of AWD off a RWD platform. There is a shot at doing this using Chrysler RWD platforms(by greatly shortening the 300/Challenger/Charger chassis). Also they could devolop a RWD sports spider sharing somthing with Dodge.(A la Dodge Hornet show car a couple of yrs ago). However if this does not come to pass and Alfa founders then Fiat should sell it off to a VW who have the right amount of money to throw at it.


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