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Annual Report

Orders received by the Volkswagen Group in Western Europe

In Western Europe (including Germany), demand for Group models in the reporting period was down on the previous year’s level. The decline is mainly attributable to the end of the scrapping premium offered in Germany, which had triggered a significant rise in demand in 2009. This development is also reflected in the level of orders received in Western Europe as a whole, which declined by 2.2% compared with the previous year. In Western Europe excluding Germany, by contrast, the Volkswagen Group recorded a rise of 6.7% in the level of orders received.

At December 31, 2010, the Volkswagen Group held orders for 269,800 vehicles within Germany and for 380,500 units from the rest of Western Europe excluding Germany. The level of orders was thus 29.1% higher than at the previous reporting date.

SALES TO THE DEALER ORGANIZATION

In fiscal year 2010, the Volkswagen Group – including the Chinese joint ventures – sold 7,278,440 vehicles to the dealer organization worldwide. This represents an increase of 15.4% compared with the previous year, which had been severely impacted by the financial and economic crisis. 23.8% more units were sold outside Germany, while 17.8% fewer vehicles were sold in Germany due to the end of the government scrapping premium. The proportion of total sales generated in Germany was 14.6% (previous year: 20.4%).

At 789,673 vehicles sold to the dealer organization worldwide, the Golf was once again our biggest seller, accounting for 10.8% of Group sales. The Polo, Sharan, Tiguan, Touareg, Audi A5 Sportback, Audi Q5, Audi Q7, Audi A8, Škoda Superb, SEAT Exeo and Multivan/Transporter models recorded significant growth. Moreover, demand was very healthy for the Passat and Jetta models marketed in China and for the Santana.

PRODUCTION

The Volkswagen Group manufactured 7,357,505 vehicles worldwide in 2010, 21.5% more than in the previous year, in which we had adapted manufacturing volumes to reflect the critical market situation. The positive development in China meant that our Chinese joint venture companies increased their production volumes by 37.9%. Our manufacturing facilities also increased their production figures considerably in Germany, Spain, the Czech Republic, Mexico and South Africa. The proportion of vehicles produced in Germany was 28.7% (previous year: 32.0%). Our plants worldwide produced an average of 29,608 vehicles a day; this corresponds to an increase of 14.0% compared with the previous year. These production figures do not include the highly successful Crafter models produced in the Daimler plants in Düsseldorf and Ludwigsfelde, or the Routan, which is manufactured in cooperation with Chrysler in the USA.

INVENTORIES

We significantly increased our production volumes in the reporting period in response to the encouraging demand trends in the global automotive markets. This led to a rise in inventories of raw materials, consumables and supplies as well as of work in progress. However, global vehicle inventories at the Group companies and in the dealer organization were higher on December 31, 2010 than a year earlier.

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