Wolfsburg, Germany - Europe's biggest carmaker Volkswagen AG has had a strong start to the year with the group saying Thursday it planned to boost sales by rolling out 20 new models by the end of the decade.
Speaking at VW's annual press conference, Winterkorn said the giant carmaker posted a 10-per-cent rise in sales during the first two months of the year.
At the same time, Winterkorn confirmed the company's target of raising annual productivity by 10 per cent with the German-based car giant hoping to sell 8 million autos by 2011 helped by the release of 20 new models.
'The group will significantly expand its model portfolio with this product rollout, and will occupy segments such as sport-utility vehicles, vans and pickups,' he said.
VW group revenue last year rose by 3.8 per cent to 108.9 billion (170 billion dollars) with earnings before interest, tax and special items rising 40 per cent to 6.15 billion euros.
'For the Volkswagen group, 2007 was by far the most successful year in the company's history,' Winterkorn told the press conference.
At 6.5 billion euros, VW's target of 5.1 billion euros profit before tax for 2008 was substantially exceeded, the group said.
The company is also planning to bolster its position in key established markets in Western Europe, North America and its domestic German market.
'Overall, we expect Volkswagen Group's 2008 operating profit to exceed the 2007 level,' said Winterkorn, who also warned that economic growth should slow this year.
VW is proposing to reward its shareholders by increasing its dividend to 1.80 euros from a previous 1.25 euros.
The Volkswagen chief also went on to welcome the move by his company's biggest shareholder, luxury sports carmaker Porsche AG to raise its 31 per cent holding in VW to take out majority control of the group.
As well, Winterkorn expressed the hope that the tensions between VW labour council and Porsche could be resolved.
'We hope very much that the current dispute between the Volkswagen works council and Porsche will soon be resolved amicably,' he said.
In addition, Winterkorn played speculation that VW would use its holdings in European Swedish truck maker Scania and its German rival MAN to orchestrate consolidation in the European truck business through a three-way truck merger. This followed a move last week by VW to take secure control of Scania.
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