The Wolfsburg, Germany-based auto group, which makes popular brands such as Volkswagen, Audi, Porsche and Bentley, said momentum in global car markets would remain weak this year and that there are "big risks" for the global economy, especially from "increasing headwinds" in some emerging markets.
"The automotive year 2013 was especially for European car makers extremely challenging," said Martin Winterkorn, VW's chief executive. "In light of the uncertainties our forecast for 2014 is comparatively cautious."
Volkswagen's net profit was EUR9 billion ($12.5 billion) last year, down from EUR21.7 billion the year before. Sales rose 2.2% to EUR197 billion, driven by a sharp increase in sales of Porsche sports cars, a moderate pickup in Europe and strong growth in China. Volkswagen sales in China crossed the three million vehicles threshold for the first time last year.China remains the growth engine.....and any drop in sales due to a troublsome economy will effect the over all performance of the company.