Location:Chinatrucks >
news >
truck news > VW Truck and Bus Expect Profit Up to Strong Sales in China and Europe
VW Truck and Bus Expect Profit Up to Strong Sales in China and Europe
Date:2017-03-24 Source:wall street journal
www.chinatrucks.com: Volkswagen AG’s truck and bus division expects a boost in profit this year on the back of stronger sales in Europe and China as well as a slight recovery in Brazil, company officials said Monday.
The company also unveiled plans to offer a service for its customers and other partners which can digitally connect vehicles.
Volkswagen Truck & Bus just ended its first year as a standalone company, grouping Volkswagen’s utility vehicles operations and truck makers Scania and MAN. In its first year, the truck division generated €1.3 billion ($1.39 billion) in pretax profit, an increase of 27% from the previous year. Revenue rose 4% to €21.3 billion from sales of around 184,000 vehicles.
Chief Executive Andreas Renschler said he expected a “significant increase” in earnings this year, after generating a return on sales of about 6.1% last year, but declined to provide a specific profit and sales outlook. Long-term, the division is targeting a pretax return on sales of around 9%.
The upbeat outlook depends on improvement in Brazil, he said, which has suffered steep declines over the past few years.
“Brazil has been an important market for us for decades,” he told reporters. “We expect a slight recovery in Brazil in the second half of the year and a stronger rebound in 2018.”
Volkswagen’s truck business plans to invest about €420 million, or about $451 million, in Brazil over the next five years, Chief Finance Officer Matthias Gruendler said.
Over the next few months, the company plans to roll out a new cloud-based service that will connect the company’s trucks and be open for its customers and other partners.
Called RIO, the service is being tested with a fleet of 60 vehicles and goes live sometime between May and August. It will connect trucks remotely with their owners and customers while providing data for predictive analytics for use in maintenance planning and repairs. It will also allow VW to offer new digital services to its truck customers.
“We want to create an eco-system for trucks,” Mr. Renschler said.
Views:0
Related China Trucks News
- JAC and VW Cooperation Process 2020-07-30
- VW to Increase Its Stake in JAC Joint Venture from 50% to 75% 2020-07-23
- VW Offers $2.9bn for Control of US Truckmaker Navistar 2020-02-04
- VW and Ford Launch Global Alliance to Build Medium-duty Trucks and Vans 2019-01-24
- JAC and VW's Seat Join Forces to Develop EV Platform in China 2018-11-30
- IAA 2018: VW Unveils Hydrogen-powered Crafter HyMotion Van Concept 2018-09-27
- VW's Traton Announces JV for Electrified Trucks with Hino 2018-09-25
- VW Truck & Bus Enters Cooperation with Hino Motors 2018-04-18
- VW Partners with JAC to Form Light Commercial Vehicles JV 2017-11-30
- VW Wants to Fill the Roads with Electric Trucks and Buses 2017-10-20
China Trucks Advisor
Submit Your Requirements, We Are Always At Your Service.
Hot News
- World’s First All-electric Scania Car Transporter Goes into Service
- China’s First Mining Specialized Remote Sensing Satellite Launched
- SINOTRUK Delivers Full Year 2022 Results, Heavy Truck Sales Down 52.50%
- FOTON and Cummins Team up to Build a New Engine Plant in Thailand
- SANY Awarded as 2022 Forbes China TOP 50 Sustainable DEV Industrial Enterprises
- Daimler Trucks and Buses Signs Deal with XCMG Fire Fighting
- FAW Jiefang Sichuan Branch Was Officially Established
- Bus & Truck Expo Set to be Held in May 2023
- Yutong, SCG Signed MoU for Green Mining in Thailand
- CAT Displays Its First Battery Electric Large Mining Truck
Recommended Brands[more]
Recommended Trucks[more]
China Truck Statistics
- Half Year Review of Commercial Vehicle Sales
- China Exported 63,000 Trucks in May, Up 33% YoY
- Top 10 Best-selling Battery-swapping Heavy Trucks in China in April
- China Exported 158,000 Trucks in Q1, Up 41% YoY
- China’s Truck Exports Grew by 43.8% YoY to 46600 Units in Feb., 2023
- China’s Heavy Truck Sales Rising 29% YOY to 77200 in Feb
- China Exports 567,000 Trucks in 2022, Hitting a New High in a Decade
- China’s Pickup Exports Jumped 65% YOY in 2022
- China's Truck Exports Grew by 42% YOY to 53,000 Units in November
- Heavy Truck Sales in China Fell by 9% YoY to 46000 Units in Nov.