VW Profit Quadruples in U.S. and China;

Volkswagen AG reported that their quarter profit was the biggest in two years for their Chinese and U.S. markets. Hyundai, who sells models in China and Korean and in the United States at New York Hyundai Dealers is also looking to improve its Chinese market shares. The Golf compact vehicle and Audi A5 were top sellers in the second quarter of 2010. The income for VW quadrupled to $1.63 billion from 283 million euros one year earlier. The improved results show that dealers such as Volkswagen Peoria and others in China are doing better with their Volkswagen model sales. GM has also reported increased sales in China and GM models can be served at a local Cincinnati Chevy Service.

The improved sales for Volkswagen are a welcome sign of an emerging auto market in China. Although the United States auto industry may feel slighted by the increase and success of the Chinese market, U.S. automakers and exporters can only benefit from increased demand for automobiles in China. Increased demand means that GM and other domestic automakers can profit from their Chinese vehicle sales, and that in turn means more jobs and a better economy for the United States.

The U.S. economy is currently improving in auto sales as well. The estimate for Volkswagen was that they would sell 721 million euros for the second quarter of 2010, but Volkswagen clearly beat that prediction. In China, Volkswagen made an announcement that they would be building two new plants to supply the increased demand for Volkswagen models in the country.

Daniel Schwarz, an analyst at Commerzbank AG said, “VW has a sound model mix and a solid footing in the growth regions of the world, that's why they had a strong quarter.” China is Volkswagen's largest market and Volkswagen will double its production in China to 3 million vehicles in the next four years. Volkswagen delivered 1.4 million vehicles in 2009.