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Volkswagen, the world’s fourth-largest carmaker, missed expectations after reporting on Thursday that operating profit rose only by half in the third quarter on the back of cost-savings effects. The main disappointment came from weak car sales, where all three divisions failed to meet market forecasts.

 

Meanwhile, a German newspaper reported that the company plans to cut up to 1,400 jobs at its ailing Seat brand as part of restructuring measures to make the unit more profitable. Seat is to concentrate more strongly on small, fuel-efficient cars, while cutting costs by combining its marketing operations with Audi’s. Audi may also provide some assistance in the development of new models.

 

Audi unit said it expects to sell more than 820,000 cars this year, up from 800,000 in 2004. In the first 10 months of the year Audi has sold 697,000 units, up 10 percent from the same time period in 2004.

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