VW shares $1.1b in profits with workers

18:00, Mar 14 2013
A VW Golf VII car on the production line at the plant of German carmaker in Wolfsburg.
BONUS: A VW Golf VII car on the production line at the plant of German carmaker in Wolfsburg.

Volkswagen is coughing up a massive NZ$1.1 billion in bonuses to workers after a record year.

The company sold 9.3 million vehicles, up nearly 12 per cent, in boosting revenues by more than 20 per cent to NZ$305 billion during 2012.

That pushed its pre-tax profit to an asonishing NZ$40 billion. Net profits came in at NZ$10.1 billion.

VW's success, however, doesn't just go to shareholders with the company's German workforce sharing some of the record profits.

VW says it will pay German workers a bonus of around €7200 or a little over NZ$11,000 at the current exchange rates. The bonus is being given to around 100,000 employees in Germany.

''Profit sharing is hard earned and deserved; it is the equitable participation of employees in the success,'' said VW board member Horst Neumann.

''The Volkswagen team has done an excellent job in 2012, and this team effort pays off for everyone.''

There is a ''but'' to this. Neumann, warned that the sales situation in southern Europe may affect future growth and profits.

''The road is bumpy,'' he said. ''The consequences of the financial crisis in southern Europe have not been overcome.''

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