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VW's profit booming as it sells 20% of cars in Germany

VW's profit booming as it sells 20% of cars in Germany
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Volkswagen is promising higher profit and sales this year thanks to new models and reduced production costs from reorganisation.

Chief Executive Martin Winterkorn, who is promising further restructuring, said they have cut costs, increased productivity and quality: “VW in the last year in Germany has managed to reach a market share of 19.9%, and that’s a new record. Every fifth car sold in Germany was a Volkswagen”

Winterkorn took over as top boss at VW earlier this year from Bernd Pischetsrieder.

Frank Schwope, car market analyst, said: “The cost cuts, the cutting of up to 20,000 jobs from the time of Pischetsrieder has brought positive results, but Winterkorn changed the mood: it is much more optimistic today.”

On top of those 20,000 positions, VW has announced 5,000 more jobs are to go at the VW brand in the next two years, reducing the production workforce in high-cost western Germany to around 80,000.

Volkswagen said it is counting on new models to help return it to profit in the US, where it made losses of 607 million euros last year.

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