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Volkswagen's van division posts record profit on Europe rebound, cost cuts
[BERLIN] Volkswagen said on Wednesday strong demand in core European markets and cost cuts drove earnings at its commercial-vehicles division to a new record in 2014.
Operating profit at the van division, which accounts for about 5 per cent of VW's 202.5 billion euros (US$214.77 billion) of group sales, jumped 13 per cent to 504 million euros, VW said.
Deliveries rose 2 per cent to 445,000 commercial vehicles, powered by growth in western Europe, where VW's van division sells two thirds of its models, the Hanover-based company said.
Cost cuts "in all areas" helped 2014 profit, VW said. The German group is aiming to boost cost savings at its core autos division to 5 billion euros per year from 2017 and last week said it has identified steps to achieve half of that target.