Volkswagen (VW) AG. Structure

Transcription

1 Berliner Ring Wolfsburg Germany Telephone: Fax Volkswagen (VW) AG Structure Volkswagen AG is part of the Volkswagen group with nine independent brands: Audi, Bentley, Bugatti, Rolls-Royce, Seat, Skoda, VW Commercial Vehicles and VW Passenger Cars. In terms of market share in western Europe almost every fifth car originates from the Volkswagen group, while worldwide VW currently holds a market share of 12.2%. With effect from 3 July 1998, subsidiaries of VW AG in the UK and USA acquired the Rolls-Royce and Bentley Motor Cars Group from Vickers plc. Agreements signed between VW and BMW AG, and between a subsidiary of BMW and Rolls-Royce Motor Cars, regulated the name Rolls-Royce. The name is to be licensed to Rolls-Royce Motor Cars until end-december From 1 January 2003, BMW will take over the Rolls-Royce brand, and VW will then concentrate operations at the plant in Crewe on the development, manufacture and sale of luxury vehicle s under the Bentley brand name. Structure of VW AG s Automotive Division BRANDS VW Commercial Vehicles VW Passenger Cars Seat Audi Skoda Bugatti Bentley Rolls-Royce REGIONS North America South America/Africa Asia-Pacific

2 Alliances/ Acquisitions With effect from 1 January 2002, Scania has sold its 50% stake in Svenska Volkswagen to VW for SKr 870m. Svenska Volkswagen imports VW, Audi, Seat, Skoda and Porsche cars in Sweden. In 2001, it accounted for 18.7% of the market. Employees 324,402 VW and SiemensVDO are to cooperate on the development and production of diesel injection systems. An agreement on the setting up of a joint venture is expected to be signed before the end of The systems are expected to be produced at VW's engine plant in Chemnitz. Toyota and VW are in talks on an alliance on telematics in Europe. The deal would give Toyota an edge in the rapidly growing telematics sector by allowing the two companies to standardise formulas for equipment such as GPS. VW would gain access to Toyota's technology, which would help it expand the use of its car information systems in Europe. The two are discussing ways of sharing information services content and service provision facilities in order to minimise costs. In North America, Toyota has a telematics alliance with GM. Volkswagen of America has signed distribution agreements with XM Satellite Radio and Sirius Satellite Radio to offer VW and Audi customers in the US a choice of satellite radio services. XM and Sirius both offer 100 channels of digital audio entertainment throughout the US for a low monthly fee. Installation plans and timing will be announced separately by VW and Audi later. On the occasion of an official visit to Germany, Yang Zemin, the Chinese Prime Minister, signed new 20-year cooperation agreements with VW, up to Through its commercial joint venture, SAIC- Volkswagen Sales, VW can now control the distribution of its vehicles, which it was prohibited from doing before. VW has introduced the new Polo on the Chinese market and plans to sell 30,000 units VW Product Range Passenger Cars: Bora, Lupo 3L TDI, Lupo FSI, Lupo, Golf, New Beetle, Passat, Polo, Sharan Commercial Vehicles: Caddy, Transporter, LT, L80 People Carriers: Caravelle, Multivan

3 Campers and Leisure Vehicles: California Coach, California Exclusive, Multivan with elevating roof, Karmann In 2002, VW announced the setting up of a senior management group to oversee all future product planning in order to remove overlapping models from group subsidiaries. VW is aiming to reduce competition between its brands. The group has recently been criticised for sharing too many platforms and components between brands. Members of the committee include Robert Buechelhofer, head of VW sales and marketing, and Martin Winterkorn, head of the Audi division. Bernd Pischetsrieder, chairman designate, has defended the decision to use the VW brand to attack the luxury sector, with models such as the Phaeton and Touareg, which will see VW competing for the first time with marques such as Mercedes-Benz and Range Rover. The VW group has decided to drastically change its model policy. Concentrating several group brands on a few vehicle classes no longer makes sense and there are gaps which must be filled. Ideally, VW wants to cover all segments relevant to its brands. At present, the group covers 75% of the over 30 segments of the market, from small cars to luxury limousines. In five years, when there will be over 40 segments, coverage should rise to over 80%. Fewer than 5% of customers change from one group brand to another. The rise of Seat and Skoda makes it necessary to position the brands more precisely. The new chairman, Bernd Pischetsrieder, is splitting the group into two brand families: sporty, with the Audi, Seat and Lamborghini brands; and classic with the Bugatti, Bentley, Skoda and VW brands. In the Golf class, there is room for more models, but at present there are too many notchbacks. There will no longer be virtually identical models such as the VW Lupo and Seat Arosa. The brands will also develop regional emphasis, with Skoda playing a major role in central Europe and Seat having good chances in South America. The main objective is that each brand has its own image and its own credibility. Product Developments VW has successfully carried out the first long-range test drive of its HY.POWER fuel-cell car and also of a high-tech Jetta Turbo Direct Injection diesel using SunFuel super-clean synthetic diesel fuel. The VW Bora HY.POWER prototype, which does not use a reformer, obtains energy from on-board hydrogen to create a hydrogen fuel cell. The aim of Volkswagen Research and the Paul Scherrer Institute was to test a totally new type of hydrogen fuel-cell driveline at outside temperatures below freezing point. The vehicle incorporates a new fuel-cell membrane and high-performance 'supercap' capacitors. VW has presented its first fuel cell car, the Bora HyMotion. The cars tank stores 50L of liquid hydrogen at -253deg C, the equivalent of 12L of petrol, giving a range of around 350km. Acceleration from 0 to

4 100km/h takes 12.6 seconds and top speed is 140km/h. VW unveiled its Phaeton (formerly D-1) at the Geneva Motor Show The Phaeton is VW's all-new, super-luxury, flagship sedan. This high-performance vehicle features a dynamic 420-horsepower W12 engine and standard 4MOTION four-wheel drive system. The Phaeton will be available in the USA in the second half of VW is to launch the new Touareg all-terrain vehicle in autumn The Touareg is 4.8-m long, 1.86m wide and has a 2.86m wheelbase, making it larger than the Mercedes-Benz M-Class, which has a similar price tag. The version powered by the 6L 420hp W12 engine will be more powerful than the Mercedes ML 55AMG and the BMW X The front of the Touareg is based on the Phaeton and uses plastics for the bonnet and mudguard, and aluminium for the doors. Ground clearance is 30cm. VW is to introduce an MPV based on the Golf early in It will be produced at the Wolfsburg plant in Germany rather than in Bratislava. In 2000, the MPV market in western Europe rose by 51.4% to 966,500 units. The new VW compact MPV will be called the Maran. In April 2002, VW presented a prototype of the most economical car in the world. The car consumes 0.99L of fuel per 100km and weighs just 290kg. The car looks more like a sports car than a research vehicle. It has an unusually narrow and very low body form. It is 3.47m long, 1.25m wide and just over 1m high. It is made completely of carbon-fibre composites and is not painted. The carbon-fibrereinforced outer skin is tensioned over a spaceframe that is made of magnesium. The drag coefficient is The car is powered by a 1- cylinder 0.3L naturally aspirated DI diesel engine centrally mounted in front of the rear axle and combined with an automated direct shift gearbox. The engine uses advanced high-pressure unit injection technology to generate 8.5bhp at 4000rpm. The crankcase and cylinder head are of an aluminium monobloc construction. Safety has been a major element in all phases of development, and features include ABS, ESP and driver's airbag. The interior offers enough space for two people, sitting in tandem. VW is working on a new electro-hydraulic transmission, which will replace the present 4-speed gearbox and torque converter. The transmission will be used on the future compact MPV derived from the Golf and on other derivatives of the model, as well as on the revamped Audi TT. The transmission will offer acceleration comparable to that of the 6-speed gearbox offered on some versions of the Golf, without increasing fuel consumption.

5 VW is starting to replace PVC with glass-fibre reinforced thermoplastics for the floor coverings of its vehicles. VW is to use of this type of material from 2005 in order to meet EU requirements on the recycling of end-of-life vehicles. The floor coverings will be supplied by Rieter Automotive. The material will be produced using the LFT-D process, which has been developed by a project involving Dow Automotive and the Fraunhof Institute. The first application will be the platform coverings for the new VW vehicles. They will be used on the Skoda Fabia and the Polo. VW is to build its new Microbus, an updated version of its small buses from the 1950s and 1960s, at a plant in Lower Saxony, creating 1,500 jobs. The vehicle is expected to be sold mainly in the USA. VW plans to produce up to 80,000 units of the vehicle, of which around twothirds will be exported to the USA. VW is planning to introduce an entry-level model in China in 2003 in order to protect its dominant share of the market, which is expected to double within five year to 1.2m-1.5m units. Competition in the segment is rising and VW wants to get in early. The model will be from VW's existing range. Production will begin in 2002 at Shanghai VW, which recently produced its 2mth car. On pricing, VW intends to keep the new model well below the Yuan 100,000 level. VW's share of the Chinese market has fallen below 50% because of a boom in cars priced at under Yuan 100,000, around 10% less than the cheapest VW model. VW is aiming to take its share back up to 50%. Eventually, VW wants to export cars from China and is already exporting some components to VW in Germany. However, because Chinese-made components are 20-40% above world prices, VW cars would not be competitive on world markets. VW is currently developing an all-new vehicle in the small car segment to replace the Lupo. The new model is expected to go on sale in 2005, when the Lupo reaches the end of its life cycle. The concept for the model is such that it can be regarded as the VW group's first World Car. Modifications are being considered for individual markets, such as trim and engine variants. It is not yet clear which market the vehicle will be introduced on first, but it seems certain that it will come under the VW brand group.

6 Subsidiaries VW AG Main Production Subsidiaries COMPANY Volkswagen AG Volkswagen Sachsen GmbH Volkswagen Bruxelles SA Volkswagen Navarra SA Volkswagen Bratislava spol sro Audi AG (98.99%) Rolls-Royce Motors Holdings Ltd Seat SA Skoda automobilova as (70%) Volkswagen de Mexico SA de CV Volkswagen do Brasil Ltda Volkswagen Argentina SA Volkswagen of South Africa (Pty) Ltd LOCATION Wolfsburg, Germany Mosel, Germany Brussels, Belgium Arazuri, Spain Bratislava, Slovak Republic Ingolstadt, Germany Crewe, UK Barcelona, Spain Mlada Boleslav, Czech Republic Puebla, Mexico Sao Bernardo do Campo, Brazil Buenos Aires, Argentina Uitenhage, South Africa Plants VW Group Production Facilities COUNTRY COMPANY PLANT WORKFORCE ACTIVITY EUROPE Germany Audi AG Ingolstadt 27,713 Audi A3, Audi A4, Audi A4 Avant, Audi TT bodyshell; engines Neckarsulm 12,116 Audi A6, Audi A6 Avant, Audi A8 Volkswagen AG Braunschweig 6,586 Axles, components, steering systems, tool manufacture, machine construction Emden 10,844 VW Passat saloon, VW Passat Variant Hannover 14,686 VW LT 2, VW T 4, components, foundry Kassel 15,349 Components, engines, foundry, gearboxes, spare parts centre Salzgitter 7,326 Components, engines, engine assembly

7 assembly Wolfsburg 49,503 VW Bora, VW Bora Variant, VW Golf, VW Golf A4 Variant, VW Lupo, components for VW group companies, VW Group HQ Volkswagen Sachsen GmbH Chemnitz 700 Engines, engine assembly Belgium Bosnia/Herzogovina UK Volkswagen Bruxelles SA Volkswagen- Sarajevo doo (58% owned by VW, 42% UNIS) Rolls Royce & Bentley Motor Cars Ltd Cosworth Technology Ltd Zwickau/Mosel 6,000 VW Golf A4, VW Passat saloon Brussels 6,893 Seat Toledo, VW Golf A4 Sarajevo 60 Skoda Felicia Crewe 2,400 Bentley Arnage, Bentley Continental R, Bentley Continental T, Bentley Azure, Bentley Continental SC, Rolls- Royce Silver Seraph Northampton 261 Engine and drive systems development, engine and vehicle workshops, engine testing, development HQ Wellingborough 146 Cylinder heads and engine blocks Worcester 222 Two aluminium foundries, cylinder heads, engine blocks Italy Poland Automobili Lamborghini (100% owned by Audi) Volkswagen- Poznan Sp zoo Portugal AutoEuropa Automoveis Lda, Palmela Sant Agata Bolognese 336 Lamborghini Diablo GT, Lamborghini Diablo Roadster 2WD and 4WD, Lamborghini Diablo SV 2WD, Lamborghini Diablo VT 4WD Poznan 2,274 Audi A6 saloon and Avant, Seat Cordoba and Vario, Skoda Felicia, Hatchback, Combi and Pickup, Skoda Octavia saloon and Combi, VW Caddy, VW Passat saloon and Variant, VW Polo, VW T4, VW LT 2 Setubal 4,100 Seat Alhambra, VW Sharan, Ford Galaxy Spain Seat SA Barcelona 2,794 HQ, production of moulded parts Martorell 11,359 Seat Arosa, Seat Cordoba, Seat Cordoba SX, Seat Cordoba Variant, Seat Ibiza,

8 Slovak Republic Czech Republic Volkswagen Navarra SA Gearbox del Prat SA (100% owned by Seat) Volkswagen Slovakia as Skoda Auto as (70% owned by VW, 30% Czech Republic) Cordoba Variant, Seat Ibiza, Seat Inca, VW Caddy 2, VW Polo Classic, VW Polo Variant, engines, spare parts centre, technical centre Pamplona 5,406 VW Polo, VW Polo GP, engine assembly Prat 1,543 Foundry, gearboxes, production of moulded parts Bratislava 5,243 VW Bora, VW Bora 4 Motion, VW Golf A4, VW Golf A4 4 Motion; gearboxes, components for gearboxes Kvasiny 1,314 Skoda Pickup, Skoda Vanplus, VW Pickup Mlada Boleslav 20,075 Skoda Felicia, Skoda Felicia Combi, Skoda Octavia, Skoda Octavia Combi; engines, engine assembly Hungary REST OF THE WORLD Argentina Brazil Israel Audi Hungaria Motor Kft (100% owned by Audi) Volkswagen Argentina SA Volkswagen do Brasil Ltda Dead Sea Magnesium Ltd 35% owned by VW, 65% Dead Sea Works) Vrchlabi 1,379 Skoda Felicia, Skoda Felicia Combi, Skoda Octavia, Skoda Pickup, Skoda Fun Gyor 3,730 Audi TT Coupe and Roadster, engines Cordoba 1,370 Engine assembly, gearboxes, running gear Pacheco 2,594 Seat Inca, VW Caddy, VW Gol, VW Polo Classic Anchieta 19,500 VW Gol, VW Santana, VW Saveiro, VW Quantum, VW Kombi T1, VW Kombi T2; engines, foundry Curitiba 1,000 Audi A3, VW Golf A4 Resende 1,300 VW Bus, VW Truck Sao Carlos 463 Engines Taubate 6,700 VW Gol, VW Parati Sodom 390 Production, processing and distribution of magnesium

9 Mexico South Africa USA China Volkswagen de Mexico SA de CV Volkswagen of South Africa (Pty) Ltd Cosworth Technology Inc (100% owned by Cosworth Technology Ltd) Shanghai- Volkswagen Automotive Company Ltd (50% VW) FAW-Volkswagen Automotive Company Ltd (30% owned by VW, 10% Audi, 60% FAW) Puebla 16,058 VW Golf Cabrio, VW Jetta, VW Beetle, VW New Beetle; engines Uitenhage 6,095 Audi A4, VW Citi Golf, VW Golf A4, VW Pickup, VW Polo Classic, VW Polo Playa, VW Kombi T3; engines, engine assembly Novi (Michigan) 224 Powertrain systems and diagnostics Shanghai 10,567 VW Santana, VW Santana 2000; engines, engine components Changchun 4,469 Audi 200, VW Jetta, VW Jetta- Facelift; engine assembly, engine components, gearboxes INDEPENDENT ASSEMBLY PLANTS Germany Karmann GmbH Osnabrueck Made-to-order production of Golf Cabriolet Indonesia Malaysia Philippines Taiwan Westfalia PT Garuda Mataram Motor Company (subsidiary of the Indomobil Group) Auto Dunia Sdn Bhd Proton Philipinas Corp Chinchun Motor Co Ltd Rheda- Wiedenbrueck Made-to-order production of VW Multivan, VW California Assembly of Audi A4, VW Caravelle Assembly of Audi A4, Audi A6 Assembly of Audi A4, VW Polo Classic Assembly of VW T4 Transporter Brazil VW's truck and bus operations in Brazil have experienced considerable success and the company currently has around 30% of the market. Because of road conditions in the country, the vehicles have to be very rugged and easy to service. In 2001, the 200,000th CV was produced at the Resende plant. The five-year old plant is the most modern and leanest CV facility in the world, with suppliers assembling the vehicle themselves, with VW monitoring quality and ensuring progress in development. Suppliers include Maxion, the chassis specialist, and SiemensVDO, which delivers

10 the completed cab. The present product range includes light CVs from 8 tonnes (120ps or 145ps) mainly for urban deliveries. Trailers are not favoured by Brazilian transport firms. Engines range from small 4- cylinder MWM 145ps units to 6-cylinder MWM 180ps-206ps turbo diesels and Cummins 192ps to 303ps units. The bus operations also offer 'madeto-measure' vehicles, with several Brazilian bodybuilders involved. Complete vehicles are markete d under the Volksbus name. VW is to start producing a new small car at its Sao Jose dos Pinhais plant in Brazil in At present known as the Tupi, the vehicle will be based on the new Polo, which is due on the Brazilian market in May Production of the Tupi will bring output at the plant to maximum capacity, around 500 units a day, and will require the introduction of a third shift. At present, it assembles the Golf and Audi A3 at a rate of 400 units a day. The Tupi will not replace the Gol, which will be revamped over the next few years. VW do Brasil president Herbert Demel has denied that the company is planning to transfer the Golf assembly line to Mexico, but has given no guarantees that the new generation will be produced at Sao Jose China Germany Spain VW is planning to expand is Shanghai plant, according to a report in the Shanghai Morning Post. Yuan 1.5bn will be spent on building a technical centre and Yuan 1bn on a car testing site. The capital of Shanghai Volkswagen Automotive will be increased to Yuan 6.3bn from Yuan 4.6bn. SAIC and VW, 50:50 partners in the plant, have extended their cooperation for a further 20 years from 2010 to Shanghai Volkswagen currently accounts for 40% of the Chinese car market, with annual output of around 250,000 vehicles, mostly the Santana model. The company also produces the Passat and launched the Polo in April VW has decided to postpone the start of production of the T5 from autumn 2002 to spring 2003, allegedly because of the success of the T4, but thought to be more because of the decline in the market. VW Nutzfahrzeuge saw its sales fall by 8.8% in 2001 to 300,000 units. VW has also put off until the end of summer 2002 a decision on whether or not to produce the Transporter-derived Microbus. The output target has been revised down to 100,000 units from 120,000 because of the disappointing reception the vehicle got at various shows. The Microbus may be produced outside Germany and not at the Hannover plant. It will be produced mainly for the American market. The European Commission is to investigate Euro 61m in aid granted to VW to upgrade its plant in Pamplona, Spain. The Commission has not yet been able to establish whether the planned aid meets EU criteria. VW plans to produce a version of the Polo which would meet EU environmental rules at the plant. The Commission will decide where there might be alternative sites for the project before it can decide whether the

11 funds should be approved. VW considered a site in Bratislava. VW is investing Euro 335m in a new shop to produce the sides, roof and other parts of the Polo and will also build a production line for body work, a new paint shop and make changes to an existing assembly line. Bosnia Poland VW was to resume production of the Golf in Sarajevo on 1 July The model has not been produced in Bosnia since At present, the plant assembles around 3,000 Skoda vehicles a year as well as parts for VW plants in Germany. 40 jobs will be created for the resumption of Golf production. The vehicles will be sold in Bosnia and other former Yugoslavian markets. VW is considering cutting back its planned investments in Poland and transferring production of vehicles to the Czech Republic. The change of plan stems from the high wage costs and bureaucratic problems in Poland. In October 2001, VW announced that it was to build a plant in Posen. In June VW started work on a logistics centre and welding shop at Swarzedz in western Poland for its Polish subsidiary. Investment in the first stage totals Zl 200m, and further stages are expected to cost several hundred million zloty. The investment will enable VW's facilities at Poznan to increase output to 625 vehicles a day, compared with 220 at present. Production Worldwide production of the VW group in 2001 fell by 0.9% to 5,107,945 units. There were substantial increases in production in particular of the Passat, the Skoda Fabia and the Audi A4. The proportion of vehicles produced in Germany rose to 36.9% compared with 35.5% in An average of 21,205 units per working day were produced groupwide. The number of vehicles produced by VW AG fell by 5.7% to 1,103,505 models, mainly due to the weak demand in Germany and the partial transfer of production of the Lupo to Volkswagen Bruxelles. As a result, average daily production fell to 4,688 vehicles. Production Highlights VW is to start production of the Gol for the Chinese market in February The Gol will be produced at VW plants in Changchung and Shanghai. The Gol, which is sold in Brazil, will be priced at under Euro 12,500. VW previously said that it hoped to sell 50,000 units of the new small car to be introduced in China in order to maintain its leadership of the market. According to Bernd Pischetsrieder, chief executive, VW is also to maintain its level of investment in the coming years, which up to now has been 6-7.5% of sales a year. VW is acquiring land to expand its Forest plant in the Brussels region, with part of the new buildings to assembly the new Golf

12 and another to house a logistics centre and sub-contractors. VW has reaffirmed its investment commitments in Slovakia, following successful EU accession talks. VW plans to start production of 20,000 units a year of the Seat Ibiza at its Bratislava plant, but says that this will not affect jobs in Spain. VW is Slovakia's largest employer and its main exporter. Investment in the Bratislava plant will be over Euro 136m in 2002, on top of the Euro 664m invested in the previous three years. The plan is part of a total ten-year Euro 1.3bn investment project that should make Slovakia the world's seventh-largest car producer. According to Ulyanovsky Avtozavod (UAZ), VW could select the Severstal plant to produce its T-4 SUV model from mid A final decision is expected at the end of November However, VW is considering other Russian producers and other countries such as China. VW's plant at Sao Bernardo do Campo, Brazil, will be the first group plant to produce the Polo Sedan. The new version will be sold on the European and Latin American markets, especially Mexico. In future it will also be produced in China in order to meet local and South African demand for RHD versions. Rl 2bn has been invested in production of the new Polo. It will go on sale in the second half of November The Polo Sedan was presented at the 2002 Paris Motor Show. VW Production by Model, (Units) Volkswagen Passenger Cars Golf (incl Cabrio) 736, , ,969 Passat 486, , ,233 Polo 328, , ,500 Bora 113, , ,158 Lupo 82,238 97,403 89,757 Toledo 38,985 59, ,759 Sharan 56,337 51,988 50,306 Alhambra 26,524 23,924 27,440 Leon 13,401 Ford Galaxy 53,897 50,280 59,479 Phaeton 371 Total 1,923,169 1,999,107 1,980,601

13 Volkswagen Commercial Vehicles Caravelle, Kombi 72,471 78,465 71,199 LT Kombi 2,489 3,840 2,414 Transporter 79,251 84,234 77,687 LT 31,259 35,524 33,036 Caddy, Inca 406 Skoda Felicia ,318 33,843 Skoda Fabia 22,886 10,980 - Skoda Octavia 5,954 8,329 7,596 Skoda Pickup 300 1,403 Audi A Total 215, , ,171 Audi Passenger Cars A4 308, ,558 A6, Allroad 186, ,715 A3 131, ,141 A ,154 TT Coupe 22,078 31,064 TT Roadster 17,271 25,712 A8 11,708 12,894 Cabriolet 184 2,311 Lamborghini Total 727, ,850 SEAT Ibiza 188, ,279 Leon 91,939 79,722 Cordoba 75,847 94,740 VW Polo Classic/VW Polo Variant 32,598 56,670 Arosa 22,980 28,403 Toledo 8,660 Inca Kombi 5,316 5,534 VW Caddy Combi 4,124 4,493 VW Caddy 35,391 32,098 Inca 14,763 15,207 Total 480, ,146

14 Skoda Fabia 261, ,780 Octavia 169, ,790 Felicia 25,114 98,635 Superb 581 Pickup 3,981 18,183 VW Caddy Pickup 4,522 Rolls-Royce/Bentley Rolls-Royce Silver Seraph Rolls-Royce Corniche Other Rolls-Royce Bentley Arnage 1,049 1,243 Bentley Azure Bentley Continental Other Bentley 61 2 Total 1,781 1,938 North America Region Jetta 212, , ,777 New Beetle 115, , ,147 Beetle 38,851 41,260 36,446 Golf Cabrio 13,595 13,690 16,691 Total 380, , ,061 South American/African Region VW Gol 317, ,400 VW Golf 133, ,850 VW Parati 40,772 48,187 VW Polo/Polo Classic 30,079 30,239 VW Passat/Santana 20,944 25,843 VW Caravelle, Kombi 16,820 19,331 Audi A3 13,674 9,719 VW Jetta 7,275 7,126 SEAT Cordoba 2,923 2,945 Audi A ,951 VW Saveiro 33,938 29,726 VW Trucks 18,974 14,689

15 VW Omnibus 4,534 3,780 VW Transporter 3,363 3,435 VW Caddy 2,306 5,076 VW Golf Pickup Seat Inca 444 1,121 Total 648, ,235 Asia-Pacific Region VW Passat/Santana 230, ,524 VW Jetta 99,393 94,150 Audi A6 30,402 16,457 VW Bora 3,593 Total for VW Group 5,107,945 5,156,455 Sales US Sales Spanish Sales In 2001, VW group sales rose by 0.4% to 5.08m units, with the VW brand accounting for 3.105m (-0.7%), Audi for 726,000 (+11%), Seat for 487,000 (-5.5%), Skoda for 461,000 (+5.9%) and VW Nutzfahrzeuge (trucks) for 300,000 (-8.8%). In 2001, VW sold 355,648 cars in the USA, compared with 355,479 in In December 2001, sales totalled 29,363 units, compared with 26,865 a year earlier. The Jetta was the most popular model with 11,480 units sold, compared with 11,737, followed by the Passat with 9,179, compared with 5,633, the New Beetle with 4,310, compared with 6,264, the Golf/GTI with 2,836, compared with 2,293, and the Cabrio with 753, compared with 853. Sales of the EuroVan rose to 805 units, compared with 85. In 2001, VW sold 102,098 vehicles in Spain, a rise of 18% on Sales of the Golf rose by 26% to 45,793 units, while sales of the Polo totalled 26,114 units. VW took a 7.6% share of the market. BRAND UNIT SALES 2000 UNIT SALES 2001 VW Passenger Cars 3,127,471 3,105,673 VW Commercial Vehicles 328, ,706 Audi 653, ,134 Seat 514, ,617 Skoda 435, ,321

16 Rolls-Royce/Bentley 1,822 1,799 Lamborghini VW Group s Key Markets REGION DELIVERIES 2000 DELIVERIES 2001 % SHARE OF CAR MARKET 2000 Worldwide 5,062,143 5,083, Western Europe 2,999,797 2,980, Germany 1,025, , Spain 338, , Italy 306, , France 271, , UK 264, , Eastern Europe 299, , Czech Republic 95,544 98, Poland 74,524 71, North America Region 657, , USA 436, , Canada 49,138 49, Mexico 171, , South America/Africa region 534, , Brazil 407, , Argentina 48,731 28, South Africa 51,122 57, Asia-Pacific Region 430, , China 335, , Japan 64,439 68, % SHARE OF CAR MARKET 2001 Financials Driven by the positive development of unit sales outside Germany, the sales revenue of the VW group increased by 6.5% to Euro 88.5bn. The rise was due to the volume increases in the vehicle and spare parts business, the growing financial services business, an improved model structure and the lasting effects of pricing measures. Revenues outside Germany accounted for 72.3% of the total.

17 Group profit before tax was up 18.6% to Euro 4,409m, while net profit reached Euro 2,926m, up 12% on The continued weakness of demand on the German automotive market meant that domestic orders received by VW AG in 2001 were 8.9% below the level of the previous year. In 2001, VW held orders for 73,203 vehicles, down 18.3%. VW AG increased its sales revenue by 1.7% against This was achieved mainly as a result of a slight growth in Germany and substantial increases in the Asia-Pacific and the North America regions. Revenue outside Germany accounted for 66% of the total. Prospects VW expects to match 2001's profit in 2002 but the forecast depends on a pick-up in the US economy in the second half of the year and an improvement in the German economy by the third quarter. Highlighting the difficulties it faces despite posting an 18.6 percent rise in pre-tax profit to billion euros in 2001, VW said sales of its key Golf model fell 7.5 percent during the first two months of The ageing model will be renewed in VW does not plan to reduce its investment budget in 2002, a road which both GM and DaimlerChrysler have been forced down. The VW group is also planning a Euro 44,500m investment programme for the period, with each brand financing the investments from their own resources. Of the total, the VW brand will invest Euro 17,900m, Audi Euro 11,500m, Skoda Euro 2,100m, the CV operations Euro 2,100m, Seat Euro 1,700m and Rolls-Royce and Bentley around Euro 400,000. In 2002, the main investments will be in the new Golf products, the successor to the Transporter, the new Touareg 4x4 and the successor to the Audi A8. Euro 10,800m is to be spent on upgrading facilities, with the main aim of improving quality and reducing costs, while Euro 20,400m is to be spent on product range renewal. The commercial vehicles arm of VW expects business to stabilise this year after the unit's profits dropped by one third in The global market for commercial vehicles and trucks sank deep into recession last year and VW, which only makes light trucks but has a 34 percent stake in Swedish heavy truck maker Scania, struggled to compete. The firm declined to make an outlook statement for earnings in 2002, although it said investment costs would affect the outcome. Bernd Pischetsrieder has hinted that the group could extend its presence in the CV sector through an alliance with Scania and MAN. The changing nature of the road haulage industry makes such partnerships more likely, according to Mr Pischetsrieder. A full merger is deemed unnecessary. A partnership with Scania and MAN could offer a complete range of commercial vehicles, from Polo vans to heavy Scania CVs, a

18 move which would be welcomed by hauliers in Europe, which will rent the vehicles. VW owns a 34% stake in Scania voting rights and 18% of equity, but is unlikely to make a bid for Volvo's 45% stake. VW is hoping to increase sales in North America by over 50% over the next three to four years, thanks to a new product offensive. Bernd Pischetsrieder, the new chairman, has said that the group could achieve sales of 750,000 units a year in the USA in the medium term. In 2001, the VW group sold almost 490,000 vehicles in North America, with the VW brand accounting for 356,000. Growth in the US will be driven mainly by the new Touareg SUV and a new MPV designed for the US market. Around half of the 100,000 annual output of the Touareg is expected to be sold in the USA. At present, North America accounts for around 10% of group sales. VW is focusing on the USA in the light of the weakening of the group's sales and profits in Europe. In the first quarter of 2002, group profits in North America rose to Euro 362m from Euro 323m in the same period in 2001, on sales of Euro 4.27bn, compared with Euro 3.82bn. In the same period, profit in Europe and the rest of the world fell to Euro 768m from Euro 1.04bn and sales to Euro 14.7bn from Euro 16.02bn. Mr Pischetsrieder sees the relative importance of the German market to the group declining as growth opportunities elsewhere are greater. China and Brazil as well as North America are seen as key to growth. The reorganisation of the group into two brand families will ensure that brands such as Audi and Seat do not compete in the same product category, but component sharing will not be abandoned totally. The Phaeton will share air suspension and basic frame with the Touareg. The new Bentley and the next-generation Audi A8 will also use the Phaeton architecture. Care will be taken to avoid customers noticing component sharing. VW Group Key Figures, VOLUME DATA UNITS Vehicle sales 5,107,142 5,161,188 Production 5,107,945 5,156,455 Workforce 322, ,402 FINANCIAL DATA EURO M Sales revenue 88,540 83,127 Operating profit 5,424 4,024 Profit before tax 4,409 3,719 Profit after taxes 2,926 2,614

19 R&D costs 2,660 3,389 Volkswagen AG Sales revenue 44,197 43,447 Profit after tax Automotive Division Sales revenue 79,966 76,700 Gross profit 12,454 11,521 Operating profit 4,872 3,473 Profit before tax 3,887 3,186 Volkswagen Group Financial Figures 2001 DM M SALES % SHARE Germany 47, Europe (excl. Germany) 66, North America 33, South America 9,943 6 Africa 2, Asia-Pacific 7, Total 167,331 Of which VW vehicles 73, Commercial vehicles 9, Spares 9, Seat vehicles 9, Skoda vehicles 7, Ford vehicles 1, Bentley vehicles Rolls-Royce vehicles Lamborghin i Leasing and rental business 16, Other sales 7, Key Details on Volkswagen Passenger Cars Brand Vehicle Sales 000 units 2,402 2,396 Production 1,923 1,999

20 Workforce Sales Revenue Euro m 47,888 45,230 Operating result 2,238 1,993 Key Details on Volkswagen Commercial Vehicles Brand Vehicle Sales 000 units Production Workforce Sales proceeds Euro m 4,280 4,562 Operating result VW Group Share of 2001 Revenue by Market South America 5% Asia/Oceania 5% Africa 1% Germany 28% North America 20% Rest of Europe 41% Please Note Please note more information on companies is available in company insights, which provide more detailed analysis and in-depth data on individual companies. Basic ims profiles only carry information companies are prepared to release into the public domain. As part of the ims-askauto vehicle sourcing programme, we have identified the supply chain for many products, linking suppliers to vehicle models. Contact us at info@askauto.com

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