BERLIN, March 18 (Reuters) - Volkswagen said on Wednesday strong demand in core European markets and cost cuts drove earnings at its commercial-vehicles division to a new record in 2014.
Operating profit at the van division, which accounts for about 5 percent of VW’s 202.5 billion euros ($214.77 billion) of group sales, jumped 13 percent to 504 million euros, VW said.
Deliveries rose 2 percent to 445,000 commercial vehicles, powered by growth in western Europe, where VW’s van division sells two thirds of its models, the Hanover-based company said.
Cost cuts “in all areas” helped 2014 profit, VW said. The German group is aiming to boost cost savings at its core autos division to 5 billion euros per year from 2017 and last week said it has identified steps to achieve half of that target.
$1 = 0.9429 euros Reporting by Andreas Cremer; Editing by Maria Sheahan