As annual profits go, Volkswagen hit it out of the park, as reported this week by CNBC.com News.
In fact, the record profit the German automaker announced at its annual meeting on Monday will have a lot of people wondering why it made nearly triple the amount of money GM did last year Overall, VW posted a net profit of $20.1 billion dollars with annual revenue surging 26% to $207.1 billion. Yes, some of the VW profit was helped by a revaluation gain on the options it holds to buy a remaining 50.1% of Porsche. Still, the staggering 58% jump in operating profits shows just how successful last year was for VW.
Compare those figures with General Motors. GM made $7.6 billion last year. By all accounts, it was a fantastic year for GM, especially coming just two years after bankruptcy. But with VW breathing nipping at the heels of GM to become the world’s largest automaker, its worth comparing GM and VW. And for that, one figure stands out. In 2011, VW made approximately $55 million every day while GM made approximately $21 million.
So why the difference? Both automakers are racking up sizable profits in China. And while GM made the bulk of its money in the U.S., VW continues to struggle here. By comparison, Volkswagen is still profiting in Europe while GM lost $700 million in that continent. One key differentiator between GM and VW is the strength of their luxury divisions. Cadillac is largely a North American brand, just starting to grow overseas. For Volkswagen, there is a portfolio of strong earnings contributors including Bentley and Porsche. And then there is Audi. It generated more profits for VW than any other brand. Audi’s operating profit last year surged by $2.6 billion.
In 2011 VW sold 1.3 million Audi vehicles around the world. It was the 16th best-selling brand of the year. Cadillac? GM sold just under 200,000 last year, making it the 52nd best-selling brand in 2011. Watch Audi over the next two years. It will be a key player in Volkswagen’s stated goal of eclipsing GM to become the world’s top automaker. In terms of profit, the German automaker has already far exceeded GM.
Volkswagen of Naples, located in beautiful Naples, Florida, is your leading new and used Volkswagen dealer serving Southwest Florida including all of Naples, Naples Park, Vanderbilt Beach, Immokalee, Golden Gate, Golden Gate Estates, Copeland, Goodland, Everglades City, Bonita Springs and Marco Island. We have a strong and committed sales staff with many years of experience satisfying our customers’ needs. Feel free to browse our new and pre-owned inventory online, www.vwofnaples.com, to request more information about vehicles, set up a test drive or inquire about financing!
Volkswagen of Naples Service Department is proud to be the only dealer in South West Florida to offer “Service While You Sleep”. This elite service will allow our customers the option of dropping off their vehicle on their way home from work and picking it up in the morning. For your convenience, our Service Department hours include nighttime service offered until 3am along with a complimentary shuttle.
Volkswagen of Naples is conveniently located and easy to find
- Traveling from Bradenton, Englewood, Punta Gorda, Arcadia, Sarasota, Ft. Myers, Cape Coral, Port Charlotte, Bonita Springs or Venice simply go South on I-75 to exit 105 (Golden Gate). Take Golden Gate west towards the Naples Airport to Airport Pulling Road. Go south on Airport Pulling Road approximately one mile, just past Radio Road on your left hand side.
- Traveling from Miami, Coral Gables, North Miami, Pembrooke Pines, Hollywood, Hallendale, Coral Springs, Ft. Lauderdale, Plantation, or Boca Raton simply go West on I-75 to exit 101 (Collier Blvd -951). Take Collier Blvd South to Davis Blvd. Go west and follow Davis Blvd. to Airport Pulling Road. Go North on Airport Pulling Road approximately one mile on your right hand side.
601 Airport Rd., S
Naples, FL 34104