Das Auto has a very good year

A wide diversity in products and markets and a strong emphasis on quality have been the key ingredients in seeing the Volkswagen group post strong results in the fiscal year 2013.

Figures released at the annual investor and media conference held recently in Berlin, Germany, show the group posting an after-tax profit of à9.1-billion (R135.8-billion) - largely on the back of vehicle sales that fell just short of 10 million units.

From the entry-level Volkswagen Polo Vivo (R132 200) through to the Bugatti (R25-million) - the group now has 12 brands and more than 315 models. Also among its brands are the likes of Porsche, Bentley, Lamborghini and Audi.

This mouthwatering assembly helped the group beat its targets for 2013 and enter this year in a strong position in the global market.

But there is no way the group is taking its foot off the pedal and plans are in place for more than 100 new models, successors and product enhancements to take place both this year and 2015.

Addressing more than 300 members of the media from 50 countries in a hangar at Tempelhof Airport, Martin Winterkorn, chairman of the board of management of Volkswagen, spoke not only about the positives from last year but how to take that success forward.

''Our success in recent years has put us in a strong market position," said Winterkorn.

"The objective now is to exploit and continuously extend this by systematically pursuing our strategy.

''In order to safeguard the quality of our earnings for the long term, we will raise our profile in all key markets, leverage our unique brand portfolio, expand our attractive product range and drive forward technical innovations.''

This will include important models such as the new Passat, Audi A4 and Q7, the Porsche Macan - a plug-in hybrid version of the Cayenne - as well as the new SEAT Ibiza.

With the conference coinciding with the launch of the e-Golf, it was also an opportunity for the group to showcase its green mobility offerings in which it has invested heavily.

On show were the e-Up and hybrid Golf GTE (which unfortunately won't be headed our way) and the James Bond-looking XL1.

Despite a number of questions still surrounding the profitability of producing electric vehicles, Volkswagen aims to sell more than one million e-mobility vehicles a year by 2020. Winterkorn said he believed the segment ''will continue to make progress''.

''In the long run technology will prevail and it is what the customer wants. Range is important,'' he said.

''We will continue to reduce costs and improve the battery. I have no fear or apprehension.''

Last year alone the group spent more than à10-billion on research and development. Winterkorn said ''sharing knowledge leads to new knowledge'' - a mantra he instills in the 570000 employees that make up the Volkswagen group worldwide.

Having snared a large market share in Europe, Volkswagen is continuing to look to expand its global footprint, and China looms large on its radar.

''China will remain the engine of growth - for us and our industry as a whole,'' said Winterkorn.

Last year the group sold more than three million vehicles in China alone, generating a profit of about à4.3-billion.

Having started 2014 with a bang - January and February are showing a year on year increase of 4.7% - Winterkorn was more guarded about the rest of the year.

''We are expecting a moderate increase in deliveries,'' he said.

He said challenges to the group would come from a difficult market environment, interest rate increases, exchange rate volatility and fluctuations in raw material prices.

What is happening in nearby Russia and Ukraine has also not gone unnoticed.

''We are following developments very closely and hope it will stabilise. Yes, it is having repercussions on our operations and can be critical if it deteriorates,'' he warned.