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FRANKFURT, Germany -- German automaker Volkswagen said Wednesday its profit fell by 57 percent in 2003 amid price wars in North America and a stronger euro that cut export earnings.

Net profit fell to 1.1 billion euros ($1.4 billion) from 2.6 billion euros the previous year, the company said, with sales increasing a slim 0.2 percent to 87.1 billion euros ($112.4 billion).

However, the profit performance exceeded the forecasts of analysts surveyed by Dow Jones Newswires, who on average expected earnings of 978 million euros ($1.26 billion).

As expected, the Wolfsburg-based company said it was cutting its dividend to 1.05 euros ($1.35) per share from 1.30 euros in 2002.

Volkswagen has faced rough conditions in the North American market, where it has been reluctant to match fierce price-cutting from rivals General Motors Corp., Ford Motor Co. and DaimlerChrysler AG’s Chrysler division.

Additionally, the euro’s rise to record highs against the U.S. dollar has put pressure on profit margins and shrinks the value of U.S. revenues when they are translated back to euros for earnings purposes.

The company’s statement did not include figures for the fourth quarter of 2003.

I say it has to more with lower quality and p1ss poor service than price wars in North America and a stronger euro that cut export earnings :crazy:

4,407 Posts
It honestly dosen't surprise me that much.

Look at VW's entire lineup here. They basically have 6 basic models, Golf, Jetta, Bettle, Passat, Touareg, and Phaeton.

Yes there are sub categories, like the GTI, Jetta Wagon, ect... but 6 basic models nonetheless.

And 4 of those are aging. The passat came out in 98', the Jetta in 99', Golf in 99' as well, Bettle in 98'

To use the Passat as an example, in 1998 it was an amazing car, it really was the start of the turn around of VW (atleast in my opponion)

Just look at a 98' Passat, comapared to a 98' Camry, 98' Accord, 98' Maxima (American cars of the time don't even warrant discussion).

Now 6 years later, alot has changed. Both the Camry and Accord have made big advancments. Both are sporting more power, slightly larger. Both are as safe, if not safer the the Passat in some incidents.

Passat saftey:

Accord & Camry '98 saftey:

Accord & Camry 2004 Saftey:

Here is a review of the three in 1998:

And here is one of them in 2004:

Im just pointing out, that the Passat is a great car, but it hasn't changed much in 6 years, and unfortuantly its competition has.

I think somthing similar is the same story for VW's whole line up.

My thought? Get the B6/Golf V/JettaV over here ASAP.


5,449 Posts
that's what millions of coil packs will do to the bottom line.

2,185 Posts
huge losses - not mentioned in this blurb, but in VW's own info - came from the Phaeton. Big money lost on a slow seller.
And yes, excluding the Touareg, everything else is old.
You know, I bought my Saab on a whim. Another choice would have been a TDI Golf 4dr. (I was in a bad mod from work - hence, a new car purchase!) But I didn't want to get the same chassis that I already had in the Beetle - for 5 years already!
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