VW Bullish on North American Phaeton Sales

Recently VW AG announced it would experience a drop of a "couple of hundred million euros" over 2003, a rough figure that takes into account the decreased value of fixed assets and development costs. If accurate this would reduce operating profit to about half of the 4.76 billion euros it made in 2002.

VW Chief Executive Bernd Pischetsrieder is under pressure to perform, and is looking to the Phaeton to boost overall profits. (Photo: Volkswagen AG)

Now VW needs to perform, delivering higher profits to its shareholders and greater reliability to its products. Pischetsrieder is no doubt under pressure, and now looking to the recently launched Phaeton to boost overall profitability.

More likely the coffers will be filled by products such as the new Touareg sport utility, as well as continued growth from its many other

In the end, the new Touareg will probably add more to the coffers than the Phaeton, but only time will tell. (Photo: Volkswagen AG)

mainstream brands that include Audi, Seat and Skoda. VW AG's premium divisions, Bentley, Bugatti and Lamborghini will do there part, but relatively low sales volumes will be about as effective to the bottom line as replacing a divot on mine field.

With that in mind it may just be that an increase in profits will only come from VW's core product line, when the next-generation Golf, Jetta and Passat models become available.