VW Ag, Europe largest car-maker is closing very fast. In the first three quarters of 2010, Vw earned $5.2 billion. On the same time Toyota forecast a profit for 2010 of $4.2 billion.
Volkswagen, Europe’s largest automaker and the world’s third largest, aspires to be the world’s biggest and most profitable car firm, with annual sales of 10 million vehicles by 2018.
“The Volkswagen Group continues to have its sights firmly set on capturing pole position in the automotive industry,” Chief Executive Martin Winterkorn said in a statement Wednesday.
Ford earned $6.37 billion in the first three quarters to become the most profitable carmaker.
VW’s earnings are advancing as customers in China, VW’s biggest market, buy Santana and Lavida sedans.
“VW is totally focused on the BRIC markets, the extent to which China is penetrated by VW is enormous,” said Aleksej Wunrau, an analyst at BHF-Bank in Frankfurt who has a “strong buy” recommendation on VW. “That’s why Toyota is feeling the pressure.”
“VW is closing in on Toyota on profitability targets,” said Tim Schuldt, a Frankfurt-based analyst at Equinet AG who recommends buying Volkswagen shares. “What matters now is to keep expanding the product portfolio to underpin the positive trend on deliveries.”