VW Group Profits Rise After First Quarter of 2017
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The first tangible results of VW’s post-dieselgate strategy are in and profit is increasing, which marks a victory for the group.
Sales revenue has increased more than 10% in Q1 as compared to 2016, and the Group’s operating profit had risen to €4.4 billion ($4.7 billion).
The improvements are the result of cost-cutting measures, but the brand also got some help from favorable exchange rates, among other things.
“Our quarterly figures were positively impacted by the strong performance of the Group brands, the launch of new, compelling products and solid earnings in Western Europe,” said Matthias Müller, CEO. “Our efforts to improve efficiency and productivity across all areas of the Company are also paying off,” Müller continued. “We are encouraged by the strong results presented today. They strengthen our resolve to continue our chosen path with TOGETHER – Strategy 2025.”
The strong profits came even though the Group has delivered 0.5% fewer cars this quarter than it did in the first three months of 2016, highlighting just how much the group has managed to lower costs.
A strong performance from the VW brand, Porsche, and Skoda helped overcome some narrow decreases at Audi and Bentley.
Despite the better-than-expected result, the Group hasn’t changed its outlook for 2017 and still expects sales revenue to increase by only 4% at the end of the year.
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May 3, 2017 at 04:50AM