Europe Autos Weather Sector Storm

By CHRISTOPH RAUWALD, DAVID PEARSON and GORDON SORLINI Shares in Volkswagen AG, PSA Peugeot-Citroën SA and Fiat SpA rallied Wednesday after all three auto makers posted strong earnings and maintained profit targets despite slumping demand in Western Europe, rising raw-material costs and continued currency woes. Solid sales in emerging markets, a limited exposure to the sagging North American market and improved cost-cutting measures helped the car makers escape the auto-sector gloom. Volkswagen, Europe's largest auto maker by sales, said second-quarter net profit rose 35% to €1.64 billion ($2.59 billion) from €1.22 billion a year earlier, driven by rising vehicle sales in South America and China. Revenue grew 4.5% to €29.49 billion from €28.21 billion. Shares in Volkswagen closed 6.9% higher at €209.55, while the DAX... [read full story]