Emission test crisis hits VW brand profit
Porsche and Scania trucks help boost German group
Wolfsburg — Operating profit at Volkswagen’s (VW’s) biggest car brand fell in 2016, showing the challenges still facing the world’s largest vehicle maker 18 months on from its emissions scandal. The German company said in February it had made a record group operating profit in 2016, excluding one-off items, helped by a strong performance from its Porsche sports cars and a turnaround at its Scania trucks business. But, providing details on its individual brands on Tuesday, the company said underlying operating profit at its VW brand fell 10% to €1.9bn, with the profit margin slipping to 1.8% from 2% in 2015. The group said a dip in revenues and higher marketing costs as a result of the September 2015 admission that it had cheated US emissions tests on diesel engines were factors in the declines. Although the group as a whole has bounced back from the scandal, and overtook Japan’s Toyota in 2016 to become the world’s biggest selling car maker, analysts view a turnaround at the VW bran...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.