Business Lines and Markets
Success through strong brands and innovative financial services
The Volkswagen Group consists of two divisions: Automotive and Financial Services. The activities of the Automotive Division comprise the development of vehicles and engines, as well as the production and sale of passenger cars, commercial vehicles, trucks and buses. The Financial Services Division’s portfolio of services includes the Group’s dealer and customer financing, leasing, banking and insurance activities and fleet management business.
In the following, we explain the key volume and financial data relating to the individual business lines, reflecting the Group structure in 2006. In addition, we examine our markets – Europe/Remaining markets, North America, South America/South Africa and Asia-Pacific – in terms of sales revenue and operating profit.
To enhance comparability, the analysis of operating profit or loss by business line and market is based on figures before special items.
KEY FIGURES BY MARKET
In 2006, the Volkswagen Group generated sales revenue of €104.9 billion, thereby exceeding the previous year’s figure by 11.6%. Operating profit before special items jumped by 51.7% to €4.4 billion.
In the Europe/Remaining markets region, we recorded a significant increase in sales revenue – from 9.8% to €74.8 billion in 2006. This improvement was mainly the result of an increase in unit sales and the continuing trend towards higher-value vehicles. Together with the successfully implemented measures of the ForMotionplus performance enhancement program, this led to a year-on-year increase in operating profit of €1.1 billion to €4.8 billion.
At €14.6 billion, sales revenue in North America was 6.5% higher than in the previous year. This development is due not only to the full availability of the Passat and Jetta models, but also to the continuing trend towards higher-value vehicles. Higher sales promotion costs and continued unfavorable exchange rate movements resulted in an operating loss of €607 million for fiscal year 2006, which was still an improvement on the previous year.
In South America/South Africa, the positive sales development of 2005 continued in 2006. Sales revenue increased sharply by 27.6% to €8.8 billion. This growth was driven mainly by the appreciation of the Brazilian real and higher unit sales, especially in Argentina and South Africa. Operating profit for fiscal year 2006 was €337 million – more than double that of the previous year.
In 2006, sales revenue in the Asia-Pacific region amounted to €6.7 billion, a year-on-year improvement of 26.8%. Owing to the intensified competitive environment and continuing unfavorable exchange rates, the operating loss widened to €– 115 million (€– 95 million).
KEY FIGURES BY BUSINESS LINE
KEY FIGURES BY MARKET