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Despite profit increase: Volkswagen dampens the sales expectations

2019-10-30T07:49:44.041Z


VW has made significantly more profit in the summer quarter. But given the crisis in the auto industry, the group is cautious about the total sales for this year.



Before Volkswagen really starts its electro-offensive, the Group is once again putting up a strong profit increase. The operating result - ie earnings adjusted for interest and taxes - improved by almost a quarter to 13.5 billion euros in the period from July to September. Sales increased by around seven percent to 186.6 billion euros, as the world's largest car company announced. VW also benefited from the offensive on more expensive SUV models.

However, given the crisis in the auto industry, the Executive Board lowered its sales expectations for the current year. Deliveries to customers should now be at the level of the previous year. So far, the group had expected a slight increase. Group sales should continue to rise by up to five percent

The legal costs associated with the diesel scandal had so far been € 1.3 billion in the 2019 financial year. Overall, the compensation of diesel manipulation VW has already cost more than 30 billion euros. The scandal hit the United States four years ago.

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VW is not only struggling with the consequences of diesel fraud. The auto industry is in a downturn and upheaval. VW boss Herbert Diess wants to change the group and is counting on the success of pure electric drives.

In the current five-year cycle until 2023, VW is investing more than € 30 billion in the electrification of its model range alone, with another € 14 billion in networking and assistance systems. With almost 70 new electric models in the next ten years, Volkswagen plans to build 22 million electric cars on its own electric platforms. Whether the customers also buy the vehicles, remains to be seen.

VW will have a first test in the coming year, when the ID.3 as a new compact model will continue the success story of Beetle and Golf in the electric era. In 2021, the harder requirements of the EU Commission for the emission of the climate-damaging exhaust gas carbon dioxide (CO2) will take effect. VW then does not sell enough electric cars in Europe, threatened high billion penalties.

The conversion to the electric age is to be financed from the business with conventional burners - above all by SUV. By 2025, every second vehicle from VW to be such a city SUV, in which VW earns more than on conventional cars. Also, the recently presented in the eighth generation new compact car Golf to hedge the transition to electric mobility.

Source: spiegel

All business articles on 2019-10-30

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