'The Volkswagen Group has extended its string of unbroken successes in 2011. We are making steady progress on our way to pole position in the automotive industry, said Prof. Dr. Martin Winterkorn (Inset), chairman of the Board of Management of Volkswagen Aktiengesellschaft, on Monday during the presentation of the Company’s 2011 financial results.

The Volkswagen Group clearly beat its ambitious goals in fiscal year 2011, setting new records for vehicle sales, sales revenue and earnings. The Group made progress both quantitatively and qualitatively: more than 8m vehicles sold for the first time, the highest product quality and customer and employee satisfaction were coupled with sound finances and a steady increase in profitability. The diverse model portfolio was again expanded by fascinating new vehicles, and the Group occupied new, high-growth segments. For 2012, Winterkorn is convinced that Volkswagen’s broad global positioning and unique diversity of brands, vehicles and services mean that the Company has what it takes to outperform its competitors. 'Our Strategy 2018 is working. We remain on track on our way to the top of the automotive industry,' said Winterkorn.

The Volkswagen Group substantially outperformed the market in the past fiscal year and recorded growth in all key regions, despite being faced with difficult conditions in volatile markets. Group deliveries climbed 14.7% to 8.3m vehicles – surpassing the figure of eight million vehicles for the first time. Thanks to these outstanding sales figures, the Volkswagen Group’s global share of the passenger car market rose from 11.3% to 12.3%. All Group brands generated a clear increase last year and outperformed the market in most cases.

The Volkswagen Passenger Cars brand is and remains a powerful driver. At 5.1m cars in 2011, brand deliveries to customers exceeded the five million mark for the first time, a rise of 13.1% on the prior-year figure. The brand’s operating profit rose by 74.7% to €3.8bn (€2.2bn). In addition to the increase in sales, this was mainly due to mix improvements and savings in materials costs.

Audi remained in the fast lane. 2011 was the most successful year in the company’s history, with deliveries of 1.3m vehicles (1.1m). Profitability was also at a record high. Operating profit climbed by 60.1 per cent year-on-year to €5.3bn (€3.3bn). In addition to the better model and country mix and the increase in vehicle sales, Audi benefited from continuous improvements in productivity and processes.

Czech manufacturer SKODA also hit new heights in 2011. Deliveries increased by 15.3% to 879,000 vehicles (763,000). The brand recorded substantial growth in Russia, India and China in particular. Operating profit climbed by 66.1% to €743m (€447m).

SEAT continued to make progress in 2011. At 350,000 vehicles, deliveries to the Spanish brand’s customers were up 3.1%on the prior-year figure (340,000). The operating loss narrowed by a substantial €86m to €225m thanks to an improved sales performance and optimised materials costs.

The continued recovery of the luxury segment lifted the Bentley brand in 2011. Deliveries increased by 36.9% to 7,003 vehicles (5,117). The British brand was back in the black with an operating profit of €8m (previous year: operating loss of €245m). The higher volume and mix improvements also had a positive impact.

Volkswagen Commercial Vehicles can also look back on a successful year. Deliveries increased by 21.4% to 529,000 vehicles (436,000). Operating profit improved by €217m to €449m (€232m). This was due to higher sales and lower materials costs.

CFO Hans Dieter Pötsch was also satisfied with developments in 2011: 'We have further increased our profitability and impressively demonstrated the robustness of our Group.' The Volkswagen Group has established a strong position and its sound finances mean that it is well prepared for the future. He added: 'Expanding our production capacity in growth markets will help to reinforce our position there and improve the quality of our earnings.' In light of the still very volatile global economic environment and the associated uncertainty, the Volkswagen Group will systematically continue its strategy of disciplined cost and investment management with a view to further increasing its profitability and thus its competitiveness.

The Volkswagen Group’s sales revenue increased by 25.6% in the past fiscal year to €159.3bn (previous year: €126.9bn). Consolidated operating profit rose to a record €11.3bn, an improvement of €4.1bn compared with 2010. Volume, mix and price effects were the strongest drivers (€5.9bn). In addition, product cost savings of €1.1bn had a positive effect. The negative effect of €2.6bn arising from fixed costs and depreciation and amortisation expense was primarily attributable to the Group’s growth and to development costs related to the expansion of the Volkswagen Group’s product portfolio. The operating margin improved from 5.6% to 7.1%.

The consolidated operating profit does not include the Group’s €2.6bn (€1.9bn) proportional share of the operating profit of the Chinese joint ventures. These companies are included using the equity method and are therefore reflected in the financial result, which rose by €5.8bn to €7.7bn last year.

All in all, the Volkswagen Group’s profit before tax last year rose by around €10bn to €18.9bn. At €15.8bn (€7.2bn), the after-tax profit is also a record.