Volkswagen Increases Sales Targets

WOLFSBURG, Germany -- Volkswagen aims to sell 8 million cars a year by 2011, almost 30 percent more than last year, and will introduce 20 models, including vans, pickups and sport-utility vehicles, in a bid to expand its market share in Asia, Europe and North America.

Europe's biggest automaker by sales is also looking at building a plant in the United States that could produce 100,000 to 150,000 cars a year.

Chief executive Martin Winterkorn announced the sales goal Thursday. Volkswagen sold 6.2 million cars in 2007, helping to push up revenue almost 4 percent from 2006, to $168.5 billion.

"We want to deliver 8 million group vehicles to our customers by 2011," Winterkorn said, adding that the company, whose brands include Audi, Skoda, Seat, Lamborghini and Bentley, will make a renewed effort to increase market share.

"We will be tailoring our vehicles precisely to regional customer requirements," he said. He added that Volkswagen hopes to reach 1 million cars sold in the United States by 2018, compared with the 329,000 it sold in 2007.

Board member Jochem Heizmann said Volkswagen's board would decide this summer whether to build a new production plant in the United States but did not say where it could be located or which models might be built.

Once a decision is made, he said, it would take two to three years before production would begin.

He said the strength of the euro, which hit a record $1.5625 Thursday, underlined the need to produce more cars in the dollar area.

"That's why we are currently examining in detail various options to develop additional production capacity," he said.

Volkswagen shares rose less than 1 percent, to $240.56.

Winterkorn made clear he was optimistic about the effects of Porsche Automobil Holding's plan to take a majority stake in his company.

In addition, Volkswagen is the biggest shareholder in Man, holding a 29.9 percent stake. The truckmaker based in Munich holds 17 percent of Scania, effectively giving Volkswagen 85 percent of the company.

Winterkorn said the core VW brand expects to sell 6.6 million cars by 2018, compared with 3.6 million VWs in 2007. Those increased sales helped the brand's operating profit rise to $2.9 billion in 2007.

The company's other brands also posted increases, Chief Financial Officer Hans Dieter Poetsch said.

Audi reported a 32 percent increase in operating profit, to $4.2 billion, and Skoda had a 38 percent increase in annual operating profit, to $1.1 billion.

Volkswagen's commercial vehicles unit more than doubled its operating profit, to $472 million, while Seat, the Spanish carmaker, had operating earnings of $12.4 million last year, compared to a loss in 2006.

Luxury unit Bentley increased its operating profit by 13 percent, to $240 million.