Audi AG, Volkswagen AG's luxury car division, expects vehicle sales this year to grow at about the same rate as last year, helped by demand in the United States and China, Chief Executive Officer Martin Winterkorn said.

Audi-brand unit sales in 2005 rose 6.4 per cent to a record 829,000 vehicles. Revenue increased 9 per cent to a record 26.59 billion euros (US$31.65 billion), or about a quarter of Volkswagen's total sales, from 24.5 billion euros (US$29.2 billion).

"No brand will grow like Audi in the near future," Winterkorn said early this week at a news conference at the carmaker's Ingolstadt, Germany, headquarters.

The Audi division is helping offset losses at Volkswagen's namesake brand. Wolfgang Bernhard, Volkswagen brand chief, told employees on February 12 that the brand's six western German plants have lost "several hundred million euros" and that the carmaker must consider closing factories or selling them.

"Audi has done well and still has a few surprises ahead," said Michael Punzet, an analyst at Landesbank Rheinland Pfalz in Mainz, Germany, with an "outperform" rating on the stock. "Audi is going to give BMW even more difficulties, and has a good chance to win market share."

Audi's net income fell 5 per cent last year to 824 million euros (US$981 million), the first decrease in 12 years, after a one-time tax effect at a subsidiary in Hungary lifted 2004 profit. "The net profit trend this year will absolutely be in a positive direction," Chief Financial Officer Rupert Stadler said in an interview.

The Audi Group, which includes the Audi and Lamborghini brands, said 2005 operating profit, or earnings before interest and taxes, rose 15 per cent to 1.42 billion euros (US$1.69 billion) from 1.24 billion euros (US$1.48 billion) a year earlier.

Audi's sales in the United States, the world's largest market, last year rose 6.6 per cent to 83,066 cars, and Chinese sales climbed 9.6 per cent to 58,878 vehicles.

The Volkswagen group's 2005 profit rose 62 per cent to 1.12 billion euros (US$1.33 billion). Full-year group-wide revenue gained 7.1 per cent to 95.3 billion euros (US$113.4 billion). The group includes Audi, Volkswagen-brand cars, Volkswagen commercial vehicles, Skoda and Seat, as well as luxury marques Lamborghini, Bentley and BuGatti.

Audi, which competes with Bayerische Motoren Werke AG and DaimlerChrysler AG's Mercedes-Benz division, is aiming to sell more than 1 million cars a year by 2008, Winterkorn said, reiterating earlier statements. Audi has had "an excellent start" in 2006, with all of the main markets showing "clear growth," he said.

The carmaker plans to increase unit sales 69 per cent to 1.4 million vehicles by 2015, Winterkorn reiterated. Audi will expand the number of new models, and variations on existing vehicles, to 40 from the current 22, the carmaker said on February 15.

Source: China Daily