Audi, Volkswagen AG’s luxury brand, will add shifts to ease waiting times for models including the Q7 sport-utility vehicle, which starts at $46,250.
Audi plans additional weekend work this month at its two main German factories to increase production, Chief Financial Officer Axel Strotbek said in an interview yesterday.
“The extra shifts are required by the good order book,” Strotbek said by phone from Audi’s headquarters in Ingolstadt, Germany. “The delivery times of several models are higher than we’d like.”
Demand for Audi vehicles fueled a surge in VW’s first- quarter earnings before interest and taxes, which more than tripled to a record 2.91 billion euros ($4.3 billion). Bayerische Motoren Werke AG, Daimler AG’s Mercedes-Benz and Audi are targeting their highest-ever sales this year, lifted by growing wealth in China and a rebound in spending in the US.
BMW, the world’s luxury-car leader, said in March it may add production capacity in Brazil, even as it expands in China and India to keep pace with demand. Chief Executive Officer Norbert Reithofer said that handling the level of orders has been a “tour de force” for the production team.
“Demand for luxury cars is being driven by China, the US and Europe,” said Daniel Schwarz, a Frankfurt-based analyst at Commerzbank AG. “Although we’re at historical levels, it doesn’t look like we’ve hit the peak yet.”
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‘Profitable Growth’
VW’s plans to add factories and models will ensure “profitable growth” at Europe’s biggest carmaker in coming years, Chief Executive Officer Martin Winterkorn said today at the annual shareholders meeting in Hamburg.
“We’re now laying the foundations for profitable growth in all segments and business fields,” Winterkorn said in his speech. “VW moved into the fast lane in 2010; that’s where we intend to keep the company in coming years.”
VW will introduce 30 models and vehicle upgrades in the coming months across its brands, including Audi and Czech unit Skoda, the CEO said. VW is expanding operations in China and will open a US factory in Chattanooga, Tennessee, on May 24.
Audi sold 18 per cent more cars and SUVs in the first quarter, a total of 312,600 units, and April deliveries confirm that the VW division is on track to achieve its full-year target of delivering more than 1.2 million vehicles, Strotbek said.
“Demand in the SUV segment has accelerated sharply,” the CFO said. “The Q7 has the longest waiting times, but the Q5 is also enjoying enormously high popularity.”