VW Denies Report About Missing Financial Targets image

Volkswagen denies a German magazine’s report according to which the automaker will not meet its financial target.

“Volkswagen AG sticks with its statements on the future development of the company’s business,” the carmaker said.

Earlier this week German magazine Manager Magazin published a report based on anonymous sources, according to which VW’s CFO Hans Dieter Poetsch has warned the automaker’s managers that the company might not be able to reach its financial targets due to higher than expected costs for the new modular assembly architecture.

The report also said that several new models, including the Tiguan compact SUV and the Touran van are expected to be less profitable than the previous versions. The report affected the German automaker’s shares which dropped 3.3% to 176,90 euro.

“The suggestion that Volkswagen isn’t committed to its targets is false,” the Wolfsburg-based carmaker said in an e-mailed statement. “Volkswagen completely stands behind its statements about the future development of the company.”

Poetsch said earlier this month that the German automaker is forecast to increase its operating margin from 3.5% in 2012 to more than 6%. VW plans to make investments of 50.2 billion in its automotive division by 2015 in order to surpass Toyota and GM and become the largest automaker in the world by 2018.

Source: yahoo.com