Volkswagen 2016 profits drop more than 19%

Volkswagen has felt the knock-on effects of the diesel emissions scandal on its first quarter balance sheets.

The German car giants have just released their first quarter financial results and the big talking point is a significant 19.3% drop in both before and after tax profit.

Volkswagen tonight reporting the drop in after tax profit to 2.4 billion Euro ($3.7 billion AUD), down from 2.9 billion Euro in the same period last year.

While in the first quarter Volkswagen managed to increase global vehicle deliveries by 0.8%, while sales (-1.2%) and production (-6.1%) both declined.

Matthias Müller, Chairman of the Board of Management of Volkswagen, said a number of factors, including global exchange rates, contributed to the downturn in profit.

“In light of the wide range of challenges we are currently facing, we are satisfied overall with the start we have made to what will undoubtedly be a demanding fiscal year 2016.

“In the first quarter, we once again managed to limit the economic effects of the diesel issue and achieve respectable results under difficult conditions.

“This shows that, with its portfolio of strong brands and its good position in many global automotive markets, the Volkswagen Group sits on very robust foundations.

“We can build on these when we now work towards modernizing our Group and positioning it for the new world of mobility.”

Be the first to comment

Leave a Reply

Your email address will not be published.