The Volkswagen commercial vehicles division posted a new financial record for the 2014 year thanks to cost cutting in “all areas” and increasing consumer demand seen in core European markets.
The unit’s 2014 operating profit jumped 13 percent to 504 million euros, and chief executive officer Eckhard Scholz said the company was confident it could beat the figures in 2015 thanks to new model introductions. VW’s van division said its upbeat forecast was based on forecasted demand for upcoming second-quarter appearances of the redesigned Caddy and T6 models, with deliveries expected to again surge even as the South American region – the company’ second biggest market, was seen again bringing negative sales results. The same happened last year, when demand growth elsewhere compensated for the slumping South American continent. “There are enough challenges but VW’s commercial vehicles division will cope well in international competition with new models and efficient plants,” commented Scholz.
The commercial vehicles unit said its 2014 operating profit – soared 13 percent to 504 million euros, with the division’s financial result accounting for around 5 percent of VW AG’s consolidated sales of 202.5 billion euros ($215 billion). The VW commercial vehicles arm has control over the sales of vans, light commercial vehicles and pick-up trucks in Europe, including the home market of Germany, accounting for a fifth and a third of deliveries, respectively. Sales climbed 2 percent to 445,000 units, on the back of a 6.5 percent rise in western Europe, with the Hanover-based unit saying the region accounts for two thirds of global deliveries.