Volkswagen Is World's Largest Automaker - By Profits

Bertel Schmitt
by Bertel Schmitt
volkswagen is world s largest automaker by profits

The podium was all smiles when Volkswagen reported an unheard-of profit of €18.9 billion ($24.8 billion) before tax, which turned into €15.8 billion ($20.7 billion) after the taxman got his €3.1 billion share. When Volkswagen announced this today in the annual results press conference, there was one man who grinned even more than anybody else.

That man was Stefan Winter. He is a reporter of the Hannoversche Allgemeine. He r eported a month ago that Volkswagen would have a €16 billion profit. And he was right. The world’s second largest automaker in volume definitely is the largest in profits. For details, the annual report is available here.

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17 of 21 comments
  • Bikegoesbaa Bikegoesbaa on Mar 12, 2012

    Who cares about profits? Everybody knows that the real measure of an automaker is is how many Chinese delivery vans their minority-stake joint venture can crank out in a year.

  • Chuckrs Chuckrs on Mar 12, 2012

    At current US C corporation tax rates, the US government would take 6.62 billion Euros equivalent in dollars from VW, not 3.1 billion. Evidence of the Laffer Curve at work? Apple has $54 billion overseas they aren't repatriating. We don't need a complete overseas tax holiday, but for creating real jobs, a reduction in corporate tax rate in general couldn't possibly be worse than current government policy and its election year class warfare stance.

    • See 8 previous
    • Stephen Stephen on Sep 19, 2012

      @charly I'm coming into this discussion late, but Stephen02is correct. Lower the taxes, eliminate the loop holds and get the money back to the US. VW is the most profitable car maker in the world and they get tax credits from Germany and the other countries they build cars in.

  • Icemilkcoffee Icemilkcoffee on Mar 12, 2012

    Just as HP figured out that you could sell printers at a loss, and make up for it by selling ink catridges at a premium; VW sells its cars at a decently low price, and makes its profits by selling overpriced parts to fix these same cars.

    • See 2 previous
    • Joeaverage Joeaverage on Mar 15, 2012

      That theory works except you forgot the part about aftermarket replacement parts and independent mechanics... I think folks like their VWs enough for various reasons that they'll put up with any shortcomings. Just like GM, Ford, and Chrysler owners. Apparently the VW owner can afford whatever it takes to feed and repair their VWs. Or not b/c I see some obviously neglected VWs running around my town. They run fine but they aren't getting any TLC. I have found my VWs to be no worse than American brands but better in some subjective ways that are important to me - the look, sounds, how they drive, and so forth - for examples. Just like the big pickup truck guys have reasons they like to tool around town in their rides. And I also find that the aftermarket has very cheap replacement parts through places like BusDepot thanks to international markets.

  • 84Cressida 84Cressida on Mar 12, 2012

    Isn't Toyota still worth far more than any other automaker?