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VW is losing $$$$

Discussion in 'Other Off Topic Forum' started by Texas Forever, Jan 6, 2004.

  1. Texas Forever

    Texas Forever Three Time F1 World Champ
    Rossa Subscribed

    Apr 28, 2003
    38,914
    Texas!
    From today's WSJ--

    VW is expected to report a 50% drop in operating profits due to the Euro and "a few hundred million euros to cover the cost of cars and technologies that are failing to generate the revenue the company expected."

    VW-North America is expected to show a loss due to the Euro. (Can you sing this to the tune of, "Blame in on Rio?")

    VW, which includes Audi, Bentley, and Lamborghini, spends an estimated 8.6% of sales on R&D versus the industry average of 6.5%.

    VW hopes that the new C1 will steal sales from BMW and MB. To keep costs down, VW may use a lot of the Maserati Quatroporte parts bin to build the C1. (Note to file -- Check VW's warranty expense in the future.)

    After spending 1.2 billion euros (that B as in billions) on the Phaeton, the car so far has been a flop. Only 3,000 were sold in Germany. It will be introduced in the US this year, but with a price of $60,000, which is $20,000 less than the European version. (Somebody musta not told the US dealers about this cause they are asking over $80k for the car.)

    VW admits that 2004 is pretty much in the tank. But things are looking up for 2005. (Or how about 2006? 2008?)

    Your intrepid reporter, DrKnowsitall.
     
  2. Boxer12

    Boxer12 Formula 3

    Jun 1, 2003
    1,672
    The new Lambos suck too! I am sure they are tankin as well. :)
     
  3. kenny

    kenny Formula Junior

    Nov 9, 2003
    376
    Greenwich , CT
    Full Name:
    Kenny
    It's no secret VAG has lots of trouble turning around a profit... They cannibalize their own brand by introducing cars like the Phaeton and Passat V8 and 4motion, when they already own Audi...

    Platform sharing is a good concept saving production costs, but whatever money they save, is more than wasted on poor parts distribution networks and then their highline brands get blemished because most european car enthusiasts know a TT is on the same platform as a Beetle, an A4 a glorified Passat etc... Ever compare the prices on parts for a comparable Audi/VW vs. a Mercedes or BMW?? Everytime I do Audi parts cost 1/3 more and their quality sucks..

    Look at the resale values on a used A6 or A8, it's almost as bad as SAAB..
     
  4. Auraraptor

    Auraraptor F1 World Champ
    Owner Lifetime Rossa

    Sep 25, 2002
    10,905
    MO
    I hope they keep losing money so they don't buy Ferrari :)
     

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