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Volkswagen profits on slide after emissions scandal

By Holly Williams

Profits at Volkswagen tumbled almost a fifth at the start of the year as the car-maker continued to grapple with the fallout from its global emissions scandal.

The group posted a 19.3% drop in pre-tax profits to €3.2bn (£2.4bn) for the three months to the end of March, with revenues down 3.4%.

But chief executive Matthias Mueller insisted it was a "respectable" result, with operating profits edging 3.4% higher to €3.4bn (£2.6bn) from €3.3bn (£2.5bn) a year earlier, boosted by one-off effects.

He said: "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.

"We have once again managed to limit the economic effects of the diesel issue and achieve respectable results under difficult conditions."

Volkswagen faces heavy costs for recalls and fixes to cars with engine-control software that evaded emissions tests.

The company has already earmarked approximately £12.7bn to cover recalls and other costs for 11 million cars sold with the software globally.

Year-on-year, Volkswagen car sales suffered a 9.7% slide in April. The brand had 16,877 registrations in April, compared to 18,690 in the same month in 2015.

Belfast Telegraph


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