VAG earnings

["Shaun D. Mullen" <smullen@philly.infi.net>]

Volkswagen AG reported today that it's 1997 second-quarter net rose 90
percent, in line with expectations amid cost cutting and stronger
foreign demand because of the weaker mark.

VAG said cost cutting (primarily thru its drive to reduce to 4 from 16
the number of platforms) has allowed it to pack more options into its
cars without corresponding price increases.  First-half sales worldwide
rose 9.9 percent, with a 13.9 percent rise in sales outside Germany
offsetting a 1.5 percent drop in domestic sales.  Strong sales of the A3
and new Passat sedan led the sales surge.  The decline in Germany was
largely the result of slowing sales of the flagship Golf ahead of the
into of the updated model in October.