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Volkswagen posts quarterly profit despite drop in sales

Volkswagen returned to profit in the third quarter as surging Chinese demand for luxury cars helped offset a 1.1% drop in vehicle deliveries due to the pandemic, sending its shares as much as 3% higher on Thursday. The German automaker's return to the black comes amid spiking coronavirus cases in Europe that led governments in France and Germany to order their countries back into strict national lockdowns on Wednesday. "The coronavirus remains a central problem," Volkswagen Chief Financial Officer Frank Witter said in a conference call with reporters. "This situation now is anything but relaxed." But Witter said the group expected the economic recovery to continue and did "not anticipate any nationwide lockdowns in larger markets." Witter said the takeover of U.S. truck maker Navistar International by Volkswagen's trucking unit Traton was an important acquisition, but the "current economic climate will not make this easy." Volkswagen reiterated it expects to post a profit for the full year, saying its business "recovered noticeably" in the third quarter as sales in China of premium vehicles, including Audi and Porsche sports cars, rose 3%. The quarterly performance was also aided by a series of cost-cutting measures launched earlier this year. Volkswagen said its net liquidity rose to 24.8 billion euros from 18.7 billion at the end of the second quarter. Excluding one-time items, third-quarter operating profit was 3.2 billion euros ($3.8 billion), down from 4.8 billion euros a year earlier, but up from a second quarter loss of 1.7 billion. In a note to clients, Jefferies analyst Philippe Houchois described the results as a "solid performance with strong cash, but relatively muted in the context of the (auto) sector recovery." Last week, German rival Daimler reported a record 24% jump in Chinese demand for its Mercedes-Benz cars, boosting its margins in the third quarter. Italian-American Fiat Chrysler Automobiles and Peugeot manufacturer PSA Group both also posted solid results this week. Witter said Volkswagen could not say for sure whether it would meet EU CO2 emissions targets this year, adding "it will be a tough race." At 1030 GMT, Volkswagen shares were up 2.9% at 129.20 euros. Related Video: Earnings/Financials Audi Bentley Bugatti Lamborghini Porsche Volkswagen

Audi CEO Stadler gets 5-year contract extension

Audi CEO Rupert Stadler will keep his seat at the top thanks to a contract extension. Volkswagen didn't divulge the length of the new contract, but German newspaper Frankfurter Allgemeine Zeitung said the term is five years. Stadler took over the current position in 2007 when current VW CEO Martin Winterkorn left it. That year the brand sold 93,506 in the US and 964,151 in total worldwide; last year it sold 158,061 in the US and 1,575,480 in total worldwide.
Even though the brand has managed only about half the US sales of its two main rivals, it led the charge globally through the first two months of this year. Over the next few years we'll see its US efforts increase with a $30.3-billion investment, 11 new models and the opening of its first North American plant. And right now it can make hay with its World Car of the Year award winner, the A3.
In addition to Stadler, VW sales boss Christian Klingler is said to have received a five-year contract extension, and VW China head Jochem Heizmann has earned another two years on the job.

Audi's 2025 goal for 25% EV sales? It's already happening

We were pleasantly surprised by Audi's full-throated support for plug-in vehicles at the recent Los Angeles Auto Show. That support took the form of the surprising claim that between 20 and 25 percent of new Audis sold will have a plug by 2025. The encouraging electric love fest continues in a new press release that's all about the brand's European sales. Now, US sales of the A3 E-Tron will start at some point in the next two months, so we don't know how the excellent plug-in hatch will fare here but as you can see, things are going extremely well in Europe: A year after its market introduction, the sales figures for the Audi A3 e-tron are also extremely encouraging: In Western Europe, it conquered top spot among the electric cars in the premium compact segment over the past few months. In Norway and the Netherlands one in four Audi customers is already opting for an A3 e-tron. So, after being available for 12 months across the pond, the numbers are impressive. Perhaps Audi of America CEO Scott Keogh knew that the 25 percent threshold is already a reality in two countries when he spoke to us in LA. In any case, Audi's got something to point to today when people ask if selling 25 percent of its cars as EVs is possible. If you'd like to add your dollars to Audi's plug-in sales figures, the A3 E-Tron's configurator is live. AUDI AG: European sales up six percent in November Audi remains on track: With around 147,750 deliveries (+1%) in November, the company reaffirmed its strong sales result from the prior-year month. In Europe, the Ingolstadt-based carmaker increased sales by 6 percent to around 62,300 units, despite the model changeover for its bestseller, the Audi A4. Since the start of the year, more than 1.64 million customers worldwide have chosen the brand with the four rings, up 3.4 percent. "In light of extraordinary effects in China and the model phase-out for the first-generation Q7 in the United States, we are satisfied with our sales performance in November," says Dietmar Voggenreiter, Member of the Board of Management for Sales and Marketing at AUDI AG. "The sustained high demand for Audi models in Europe and our good global order situation continue to provide momentum for the months ahead." Most recently, the brand's growth in Europe was driven particularly by the latest models: Sales of the Audi Q7, with the latest generation launched in summer, quadrupled to around 3,300 units in November.