Volkswagen AG’s commercial vehicle unit will continue to post losses this year due to weak demand in Germany and will break even in 2005, the head of the division told Reuters on Tuesday.

“We see 2004 as a bridge year. We want to reach an operating turnaround in 2005,” Bernd Wiedemann, head of Volkswagen commercial vehicles, said at a trade fair in Hanover. He added that meant he expected the unit to break even next year.

The report noted that commercial-vehicle division of Europe’s biggest car maker had an operating loss of €233 million ($US283 million) in 2003, its first annual loss in eight years and is undergoing an extensive restructuring. By contrast, DaimlerChrysler’s trucks business continues to boom, its head on Tuesday reiterating the division’s forecast for sharply higher operating profit.

Wiedemann reportedly said in March he was striving for a modest return to profit this year but warned that would depend on a broader economic recovery.

He told Reuters on Tuesday that deliveries at VW commercial vehicles had risen by 20.2% in the first eight months of 2004, adding he expected growth of 20% for the year as a whole.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Deliveries of trucks, vans and buses should also grow by a double-digit percentage in 2005, the report added.