VW Expects “Demanding” Year Ahead

CEO Martin Winterkorn says 2012 will be a "very demanding year" for Volkswagen AG because Europe's debt crisis continues to dampen sales.

But in a speech to shareholders at VW's annual meeting on Thursday, Winterkorn declared the company is standing by its earlier forecast that revenue and vehicle sales will top last year's records of €159.3 billion and 8.3 million vehicles, respectively. He says VW still expects its 2012 operating profit to match last year's record €11.3 billion.

Separately, Winterkorn confirmed news reports that the company will build a new car plant in Xinjiang province in northwestern China.

Shareholders also elected Chairman Ferdinand Piech, 75, to a new five-year term and appointed his wife Ursula to VW's supervisory board.