Volkswagen: a mixed bag

Volkswagen has cut its 2002 forecasts, after reporting a decline in first-half sales and profits. The German carmaker has been hit by low demand, combined with an aging range and a strengthening euro. On the plus side, VW has raised its Q2 profit by 13.5% despite a mere 1% sales increase. It's managed this by cutting costs while avoiding deep discounting.

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Volkswagen: bowing out of Belgium?

Reports have suggested that the head of the VW brand is considering closing its Brussels plant. The scaling down of the carmaker's western European plants, followed by relocation in countries with lower labor costs, is vital to VW's future survival. However a local backlash over the Belgian closure could do VW's image further harm at an already difficult time.

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Volkswagen: Brussels bombards last of the independents

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Volkswagen: cutting production to avoid inventory issues

Europe's largest carmaker wants to avoid building up too much inventory as sales of its highest volume models slow. But while this is certainly a sensible strategy, it does not bode well for the industry. As Germany's economy shrinks and its neighbors looks shaky, 2002 looks set to be a poor year for European automakers.

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Volkswagen: remembering the 1960s

Conjuring up images of the 1960s and 'flower power', the old camper van has a place in many peoples' hearts. Volkswagen is now aiming to exploit this - and the recent trend for retro cars - by following up its new Beetle with a modern version. While the vehicle could prove popular with fashionable buyers, it runs the risk of becoming a short-lived fad.

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Volkswagen: showing its Metall

Despite its reluctance to meet wage demands for German workers, Volkswagen [VOW.F] continues to negotiate with the IG Metall union. Were VW to shift production away from its homeland, it risks provoking a storm of controversy that may damage the brand. But VW already has experience of successful car production in low cost markets, and may find the attraction too hard to resist in the long term.

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Volkswagen: unsteady profits

Profits for the year were up by almost 19%, but Q4 was disappointing. If VW does not take action to address the causes of this decline, the same problems could recur in 2002. However, the company's brand repositioning plans, designed to remove internal rivalry, should help it to enjoy another successful year.

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VW Group: maybe defying the mould, maybe overconfident

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VW: a theoretical debate

The German government has invoked a controversial law to prevent VW from passing into foreign hands, which could incur EU legal action. However, the dispute may well turn out to be purely theoretical as none of VW's rivals look to be in a strong enough position to buy it.<BR />

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VW: EU scrutiny, and not for the first time

Having previously issued fines, the EC is once again investigating Volkswagen on anti-competitive grounds. If any legal action were successful, VW would be open to takeover from the larger players. With VW's recent recall underway the company will be looking for a change in fortunes. This may come in 2004 with new model launches.

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