Volkswagen Narrows U.S. Losses, Sees 10%-plus Sales Growth in '08

Volkswagen says it narrowed its first-half loss in the U.S., and although sales were down 4.4% year-over-year and will be flat in 2007 -- due to readying for '08 models -- the company expects to achieve a minimum of 10% sales growth next year. It could break even in '08 and says it will at the latest in '09. Ordinary shares of Volkswagen rallied on the news, last up 1.1% to €109.80 in afternoon trading. Volkswagen of America credits its improving bottom line to reducing discounts and warranty claims, while focusing on sales of its most profitable models. Next year it will be introducing to the U.S. market a compact SUV, a new Passat coupe and a minivan built jointly with DaimlerChrysler. Volkswagen of America has a long-term goal of raising sales to 400,000 - 600,000 autos annually. It sold 235,140 vehicles in '06 -- well shy of its 1970 record of nearly 570,000.

Sources: Bloomberg
Commentary: Eye on Volkswagen: A Brief History • Auto Retail Earnings Season: Headlines Rarely Tell the True Story • Volkswagen's Profit More Than Doubles, Sending European Shares Higher
Stocks/ETFs to watch: Volkswagen AG (VLKAY.PK). Competitors: General Motors (GM), DaimlerChrysler (DCX), Ford (F), Toyota (TM), Honda (HMC), Nissan (NSANY)

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