In a bid to overcome the sluggish demand in Europe,
) plans to double its production output at the Slovak plant with
the introduction of Up minicar and Skoda and Seat branded
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Volkswagen is set to boost the production in Slovakia to reap
benefits from its adoption of euro and lower labor costs. In
2012, the Slovak plant, close to Bratislava, delivered 419,888
vehicles compared with 210,441 in 2011.
The cars from this plant are also marketed in Russia, Germany,
the U.S, the U.K. and China. This widespread network of the plant
helps to offset the declining demand in Europe. The automaker
General Motor Company
PSA Peugeot Citroen
) are also concerned about the uncertainty in the European
The Slovak plant produces sport utility vehicles (SUVs) including
new generation of Volkswagen Touareg, Audi Q7, and parts of the
Porsche Cayenne. SUVs account for 51% of the total production of
Headquartered in Wolfsburg, Germany, Volkswagen is the one of the
leading automotive manufacturers in the world. The company is
engaged in developing vehicles and engines, production and sale
of passenger cars, commercial vehicles, trucks, and buses.
Volkswagen also offers an array of low-consumption small cars to
luxury class vehicles, along with commercial vehicles ranging
from pick-ups to buses and heavy trucks. Currently, Volkswagen
retains a Zacks Rank #4 (Sell) on its stock.
Volkswagen posted a handsome 41% rise in net profits to €21.7
billion ($28.7 billion) in 2012 from €15.4 billion in the prior
year, driven mainly by the accounting boost received from the
addition of Porsche into the company's well renowned 12 brands.
Revenues escalated 21% to €192.7 billion ($254.9 billion), driven
by impressive vehicle deliveries in the year that topped 9
million units globally for the first time in the company's