Volkswagen see profit increase despite diesel crisis

Today Volkswagen have announced their profits over the last 6 months. Between the beginning of January and the end of June, Volkswagen Group sales revenue rose by 7.3 per cent to EUR 115.9 billion. During that period, operating profit increased to EUR 8.9 billion (from 7.5 in the previous year) and operating return on sales grew to 7.7 per cent (from the prior-year 7%).

For Frank Witter, chief financial officer said, “The results were boosted by growth in unit sales. Increases in the first half-year were seen primarily in Europe, but also in North and South America, which is particularly encouraging. The successful placement of a hybrid bond also had a positive effect on net liquidity in the Automotive Division and underlined the confidence investors place in our strategy. I am firmly convinced that our financial footing is adequate to cope with the transformation in the automotive industry and topics of the future.”

The future of Volkswagen was in doubt after the emissions scandal, where their diesel vehicles were found to be polluting up to 10 times more emissions than quoted by the German Manufacturer. Luckily for VW their profits are still growing and their brand image hasn’t been totally damaged.

The same can’t be said for the overall reputation of diesel itself. In June this year, it was revealed by the SMMT that sales of diesel cars had fallen by 20%. This is probably because of the coverage in the media of the Volkswagen emissions scandal, although it is unlikely to happen, consumers now seem worried that they could be penalised for purchasing a diesel vehicle.

 

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