Volkswagen's revenue surges to over € 200 billion in 2014

Volkswagen Group’s global revenue crossed the €200 billion mark in 2014, the company reported during an official presentation of their accounts on Thursday.

This represents a marginal 2.8% increase in revenue compared to last year when it stood at 197 billion. The operating profit rose by 1 billion to a record € 12.7 billion in 2014 with profit before tax reported at €11.1 billion.

China drove the sales growth for Volkswagen with 3.7 million units(out of total 10.1 million vehicles) sold alone in world’s most populous country. VW’s proportionate share in their joint ventures in China also rose by a staggering 20%.

Dividing the revenue by brands, Volkswagen Passenger Car business was the biggest cash-cow for the company, contributing to nearly 50% of the total revenue. Next up was Audi with revenue in excess of €50 billion while Porsche’s revenue grew by 20% to €17.2 billion. Volkswagen Financial arm generated operating profits of € 1.7billion.

On the occasion, company CEO Dr Martin Winterkorn said “We ensured that 2014 was another successful year. Since 2007, we have written an impressive, sustained success story. The Volkswagen Group signifies real value and reliability in a world full of uncertainties”,

Volkswagen has embarked on a robust growth plan with focus very much on cost cutting. The company expects to save €1 billion this year by optimal utilisation of its plants and discontinuation of unprofitable methods.

To improve its growth figures even further, 50 new models will be launched across the group with the new Audi Q7, A4 and Porsche 911 being the key highlights.

If everything goes according to plan, Volkswagen expects operating return on sales between 5.5 and 6.5% during the current year.