Friday, July 22, 2005

VW plans to launch 10 new models in US

Text from the Associated Press.
German car maker Volkswagen AG Thursday said it plans to launch 10 new car models in the U.S. within the next three to four years, according to the latest edition of the company's newsletter.

Volkswagen Chief Executive Wolfgang Bernhard recently told investors at a conference in Dallas, Texas that the company plans to launch the new models in efforts to revive its struggling North American business.

Between 2002 and 2004, Volkswagen's North American unit sales fell around 20 percent per year, and decreased another 17 percent in the first half of 2005 primarily due to the company's low ranking in quality standards studies, the newsletter said.

In addition, company spokesman Frank Gaube told Dow Jones Newswires Thursday that Volkswagen doesn't expect its earnings to be impacted by currency fluctuations related to Thursday's revaluation of the Chinese yuan.

"We invoice our Chinese joint-venture partners in euros," Gaube said.