Home News VW feared protracted crisis – Automobile Week

VW feared protracted crisis – Automobile Week

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WOLFSBURG (Dow Jones) – With Europe’s largest Vehicle manufacturer Volkswagen is growing concern over a very long car crisis. The Group Chief Executive Martin Winterkorn to fears for information the industry and business magazine "Auto Week, that the weakness of the vehicle activity and was not significantly stretches longer than previously expected. "The most critical year of the crisis is still ahead of us, "said CFO Hans Dieter Poetsch in a confidential letter to the Board of Management.
Accordingly, VW expects the period from 2007 to 2018 in one Compared to previous estimates by a total of 67 million vehicles lower car world. "And that means the elimination of an entire World total in that calendar year period, "presented VW sales expert Detlef Wittig managers in the same letter, of the leaf according to its own data exists dar.
This effect leads to a sustained lower Group deliveries to customers in comparison to the preliminary planning and thus a more lower financial result, "Wittig is cited.
Declining sales in its core European market, significant Over-capacity, high pricing pressure, risks of insolvency among suppliers and Retailers, and an ongoing deterioration of the product mix towards smaller vehicles put the Volkswagen Score "additional pressure" is quoted from the VW letter further. The Crisis had not passed long ago "," loud the conclusion in the passage of CEO Winterkorn. When VW was on Sunday First, no one reached for comment.
Website: www.automobilwoche.de
DJG / apo
END) Dow Jones Newswires
January 24, 2010 10:25 ET (15:25 GMT)
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