Volkswagen adding shifts to keep up with demand

(March 11, 2011) Volkswagen sales are up worldwide in 2011, and Volkswagen CEO Martin Winterkorn said Thursday he is adding extra shifts at several factories to keep up with rising demand from customers.

"Our group is expecting a strong first quarter on all fronts," Winterkorn said at VW's annual investors and press conference in Wolfsburg, Germany.

Two-month global sales at VW, which also includes the Audi luxury brand and Czech division Skoda, increased 18 percent to more than 1.2 million cars, the CEO said. VW's order books are "well filled" and production is running "at full stretch."

Volkswagen is counting on growth in Brazil, Russia, India and China to narrow its gap with Toyota, the world's biggest carmaker. VW forecasts sales will grow 5 percent this year after reporting a record 7.2 million deliveries of cars and SUVs in 2010. Sales in China last year grew 37 percent to 1.92 million cars.

VW is adding shifts "in many locations" to meet growing demand, the CEO said. The carmaker halted production on Jan. 31 at its main Wolfsburg factory and a plant in Emden amid tight component supplies stemming from parts-makers' struggle to keep up with vehicle demand.

"VW moved into the fast lane in 2010 and that is where we intend to stay in the current year," Winterkorn said. "We're now laying the foundations for profitable growth in all segments and business fields."


Source: Bloomberg News