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VW banks on new Touareg to addition advance prospects.

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Frankfurt, Germany (CNN) — Volkswagen said on Wednesday profits confused by two-thirds in the aboriginal division of 2003 as a aftereffect of sales falling, the euro deepening and spending on new aggressive models rising.

Europe’s better car maker fabricated a net assets of 202 actor euros ($230 million) in the three months to March 31, bottomward from 627 actor euros a year ago. Sales fell 2.7 percent to 20.7 billion euros.

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Chief Executive Bernd Pischetsrieder expects a “substantial” advance in operating accumulation during the advance of the year as the aggregation launches new vehicles.

The cartage will advice the aggregation hit its operating accumulation target, but they will be lower than aftermost year’s abstracts of 4.76 billion euros ($5.2 billion).

“We apprehend operating accumulation to advance essentially in the advance of the year, on the base of accretion assemblage sales of our broadcast and adapted artefact acerbity — in accurate the models Touareg, Touran, Audi A3, Golf and the new bearing Transporter,” the aggregation said in a statement.

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VW makes the New Beetle, Golf and Passat, and owns affluence marques Audi, Lamborghini and Bentley.

Like added accumulation bazaar car makers, VW is aggressive anemic appeal on both abandon of the Atlantic, but its profits are beneath accurate burden as key models are crumbling at the aforementioned time and development costs for replacements accumulation up.

In its better distinct market, Western Europe, sales fell 3.4 percent. Volkswagen has been accident bazaar allotment to newer models from Peugeot, Citroen and Toyota Motor.

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But VW said its aggregate sales in the aboriginal division had risen 3.1 percent, apprenticed abundantly by aciculate assets in China, which overtook Germany to become its better bazaar for the aboriginal time.

VW (FVOW) banal rose 45 cents, or 1.4 percent, to 32.79 euros in midday Frankfurt trading on Wednesday.

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