| Chief Executive Martin Winterkorn told the VW | | | | able to build a satisfactory presence in India if they also |
| shareholders that Volkswagen AG is set to post a | | | | manufacture there directly. That is why VW will build a |
| pretax profit of at least 5.1 billion euros that is US$6.92 | | | | plant near the city of Pune at which it will start |
| billion in 2008 because of its higher sales of its cars in | | | | producing models including a small car designed to the |
| Asia and Europe, and the United States fuel growth. | | | | needs of their customers in the Indian market, beginning |
| He also said the German automaker -- famous for its | | | | in 2009. |
| Beetle and durable VW disc -- will become more | | | | Volkswagen expects to start assembling VW and |
| involved in the Indian and Russian markets and has | | | | Skoda models at its new plant in Kaluga near Moscow |
| outlined plans to expand production and sales in both | | | | by the second half of this year, but is aiming to |
| countries, which are seeing a growing demand for | | | | eventually have a complete manufacturing presence. |
| new cars. | | | | Same in India, Volkswagen's objective in Russia is to |
| Speaking at the automaker's annual meeting, | | | | attain a full manufacturing process. Once the body |
| Winterkorn did not lay out an earnings goal for this | | | | shop, paint shop and assembly line are ready, they will |
| year, which the company said earlier would likely | | | | be able to start manufacturing Volkswagen and Skoda |
| surpass the 4.4 billion euros earned in 2006. He said in | | | | models in Russia two years from now. |
| the meeting that the Volkswagen group has | | | | Winterkorn said Porsche AG's decision to recently |
| experienced 12 eventful months. He further explained | | | | increase its stake in VW was a sign of continued |
| the collective wage agreement in October and the | | | | strengthening of the cooperation between the two |
| return to a five-day week represent a big step toward | | | | companies - Porsche and VW. Winterkorn believes |
| more competitive labor costs, higher capacity utilization | | | | that Porsche has faith in Volkswagen's potential. |
| and secured jobs. | | | | Last month, the German luxury automaker raised its |
| The company has spent nearly two years cutting | | | | holding in Volkswagen to 31 per cent in a move that it |
| some 20,000 jobs from its German workforce | | | | said was aimed at protecting VW from a hostile |
| because it strives to become more nimble in the face | | | | takeover. Followed by the German state of Lower |
| of rising competition from European and Asian rivals. | | | | Saxony, which holds nearly 20 per cent, Porsche is |
| Because of the restructuring, the company's | | | | now VW's biggest shareholder. |
| workforce was reduced to 94,000 employees; a 7 | | | | A German law that limits Volkswagen shareholder |
| percent decrease from its previous number of | | | | voting rights to a maximum of 20 per cent appears |
| employees. Workers at the six plants in western | | | | likely to be ruled unlawful by European Union judges, |
| Germany also extended their workweek to from 28.8 | | | | but these holdings would leave the automaker |
| hours 35 hours. | | | | protected. |
| Winterkorn said the company, which is establishing | | | | The meeting came a day after the Wolfsburg-based |
| production in India and Russia, is working hard in those | | | | company said it earned 740 million euros, or just over |
| two countries to build a good image in both markets. | | | | $1 billion, in the January-March period, compared with |
| India is one of the fastest growing automotive markets | | | | 327 million euros a year earlier. |
| worldwide. Noting that Volkswagen sells Audis in the | | | | Sales rose 5.1 percent to 26.6 billion euros that is $36.1 |
| country and that some models from its Skoda unit are | | | | billion, from 25.3 billion euros. |
| already built in India and Russia, Winterkorn said they | | | | Big gains in China and Eastern Europe, and a modest |
| are intent on playing a key role in shaping this growth. | | | | gain in the United States, helped offset a dip in sales in |
| Winterkorn further said because of the high tariffs on | | | | Volkswagen's German home market after the country |
| imported vehicles, however, Volkswagen will only be | | | | increased its value-added tax rate in January. |