Volkswagen Group's Sales Rise 12.4 Percent

Despite the challenging environment in Europe, the Volkswagen Group was able to increase its worldwide sales by 12.4 percent to 4.6 million vehicles in the first six months of the year. In doing so, the Group’s share of the global passenger car market rose 0.1 percent to 12.4 percent. The German automaker's operating profit rose 3.4 percent to €3.28 billion (US$4 billion) in the second quarter of the year showing signs of slower growth as the company had reported a first-quarter increase of 10 percent.
Overall, the VW Group's operating profit was up 6.7 percent to €6.5 billion (US$7.96 billion) in the first six months of 2012.
"Against a background of economic uncertainty, our performance so far, our improving cost structures, our flexible production and our technology leadership in many areas mean that we are well equipped to meet the challenges facing us," said CFO Hans Dieter Pötsch. "More than ever before, our sound financial position is paying off."
The VW passenger car brand sold 2.4 million vehicles in H1/2012, an increase of 9.5 percent over the prior year period, with the Fox, Tiguan, Touareg and Sharan models recording the highest growth rates.
The group's Audi brand delivered 678,000 vehicles from January to June 2012, and the Chinese joint venture FAW-Volkswagen sold a further 166,000 Audi vehicles.
As previously reported, Skoda sold 493,000 units in the first six months of the year, up 8.4 percent over the same period in 2011.
Seat posted a 16.0 percent year-on-year increase in sales to 218,000 vehicles worldwide, despite a continuing decline in demand in its home market of Spain.
Luxury carmaker Bentley delivered around 5,000 vehicles in the first half, which corresponds to an increase of 47.8 percent compared with last year.
The VW Commercial Vehicles brand sold 228,000 vehicles in the same period, up 4.8 percent on the previous year.
VW Group CEO Martin Winterkorn said that the company expects to at least match last year's record operating profit of €11.3 billion (US$13.9 billion).

VW Reportedly Interested in Parent Company Proton

Last week, Reuters reported that the ever-expanding Volkswagen Group is considering to place a new bid for Proton, which owns the Lotus brand, some five years after the Germans failed to form a tie up with the Malaysian carmaker as it seeks to extend its reach in the southeast Asian markets. Today, DRB-Hicom, which acquired a 42.7 percent stake in Proton earlier this year, said that it had received an offer from an unnamed foreign company to buy Lotus for £1 (US$1.6 / €1.3) and take over the British company's debts that amount to more than £200 million (US$311 million / €257 million).
The Malaysian company said it rejected the offer. "The easy way out was to accept the offer," Mohd Khamil, Proton executive chairman, told The Star. "As a businessman, that was what I could have done to cut the loss, move on."
"We believe we have a business plan that will work for Lotus. If I sell without trying, at the end of the day, I will fail my shareholders," he added.
While DRB-Hicom would not reveal the name of the company interested in Lotus, some have speculated that it could be Volkswagen. However, it's appears that the Germans are purely interested in Proton with Lotus simply being a part of the deal that it may or may not want to keep.
In related news, DRB-Hicom said that it would wind down its previous, overly ambitious plan to produce the five concept models shown at the 2010 Paris Motor Show and which was conceived under the leadership of former CEO Dany Bahar, who was fired last month.
According to Autocar magazine, it is not known yet if any of the five cars, which include the new Elise, Esprit, Elite GT, Elan and Eterne sports saloon, will survive.
Interesting times for Lotus indeed…
Story References: Reuters via Worldcarfans

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