Costs of developing new models weighs on Volkswagen profitability
Volkswagen’s profit decline was due in part to its broad plan to introduce more than 30 models this year to defend sales in markets such as China. File picture
Waning car sales and the additional cost of introducing new models has weighed on Volkswagen’s profitability during the opening three months of the year as operating profit declined by 20%.
According to the German automotive giant, operating profit stood at €4.6bn between January and March this year with revenues hitting €75.5bn — down from €76.2bn during the same period last year.
