Volkswagen Sees Record Profit, Leading Toyota And GM

Volkswagen AG Chief Executive Officer Martin Winterkorn can check one thing off his to-do list: beat rivals in profit.

VW, which six years ago set out to become the world's biggest carmaker and a leader in profitability by 2018, reported record operating income of 11.5 billion euros ($15 billion) for 2012. That surpassed General Motors Co.'s $7.9 billion and Toyota Motor Corp.'s 1.06 trillion yen ($11.1 billion) for the year.

When Winterkorn set the growth targets in 2007, VW didn't look much like a world-beater. It had just gone through a disruptive round of job cuts, its namesake brand was barely breaking even, and Toyota earned about $10 billion more than VW.

Winterkorn vowed to raise pretax profit margins to 8 percent from just 1.7 percent in 2006. And he said VW would boost deliveries to more than 10 million vehicles from 6.2 million in 2007 — in effect adding the sales of a carmaker almost as big as Hyundai Motor Co.

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lexworld - 3/21/2013 3:00:32 PM

+1 Boost

This is intresting in regards to their profitability. However, the larger picture is the Auto Makers Revenue, Assets and their real world worth which equals their Market Value. Some may earn more profit, but they generate great revenue, have great assests and they are worth the serious bucks in terms of their Market Place Value. For instance, here's some examples of who's worth what? Outside of the Auto Industry, Apple's approx. current worth (market value), being the world's largest corp, is a whopping $546 Billion. Samsung, Apple's main rival, market value is $162 Billion. Another worlds largest public corporation rivals are Coca Cola's $158.8 Billion vs Pepsi Cola's $101.3 Billion. Now for the Big Dogs of our subject:

#1) Toyota's worth is a whopping $147.9 Billion #2) VW $79B #3) Honda $70.8B #4) Merc $66.3B #5) BMW $62.2B #6) Nissan $48.1B #7) Ford $47.5B #8) Hyundai $43.6B #9) GM $40B

Just in case anything goes wrong, such as a Split, Bankruptcy, a Crisis, Natural Disaster, Lawsuits, Wall Street Crash etc.

Who will most likely survive, comeback or go under?

lexworld - 3/21/2013 3:04:46 PM

+1 Boost

...I did not include these Corporations Revenues or Assets for sake of time. Help your self to some research in your free time guys.

MorePower - 3/22/2013 2:11:34 AM

+1 Boost

Well when you can get away with selling compact cars for $30k+ us and have a product line that nets you a $20k - $50k profit per vehicle, I can see why.

lexworld - 3/22/2013 6:06:52 PM

+1 Boost

...Although most of the time -MorePower you tend to kick some pretty serious name branders under the short bus, I think you just may learn somethin one day. Do you remember what use to be written on the bottom right hand side of the outside passenger mirror?