July 25, 2021

The VW brand reduces operating profit by 6.9% until September

The VW brand reduces operating profit by 6.9% until September



In the first three quarters, the Volkswagen brand lost operating profit before extraordinary items by 6.9% to 2,330 million euros, compared to the same period of 2017 due to the impact of the application of the new emission standards.

Volkswagen reported today that the application of the new standards, which include more demanding tests, and the incentives to change to a model more respectful with the environment have increased the distribution costs.

The operating profitability on sales before extraordinary sales fell to 3.7% (4.3%).

Deliveries increased between January and September by 2.9% (4,623,000 units) and turnover improved by 7.3% (62,508 million euros).

The manipulation of the emissions in vehicles with diesel engine generated up to September extraordinary costs of 1,600 million euros, 1,000 million euros less than a year before.

The VW brand, the group's main brand, has set a profitability target on sales of over 6% in 2025.

It also wants to improve the productivity of its factories around the world by 30% until 2025.

The VW brand foresees in 2018 an increase in turnover of up to 10% compared to the previous year and an operational profitability on sales before extraordinary items between 4 and 5%.

However, it emphasizes that the profitability will probably be 4% due to the costs of implementing the new emission standards, the higher distribution costs and the investments in new products, especially electrical ones.

.



Source link