Sales and profits down at Volkswagen

Sales and profits down at VW
31 May 2016

Volkswagen's emissions scandal has, unsurprisingly, been bad for business. In the first quarter of the year, they have posted a 19.3% fall in profits.

Now, don't start sending a hat 'round for them just yet - they've still reported a profit of £2.4 billion. However, dropping nearly 20% if not to be sniffed at, especially as sales are down 3.4% too.

In a statement, the group's chief executive, Matthias Mueller, said: "We once again managed to limit the economic effects of the diesel issue and achieve respectable results under difficult conditions."

Obviously, the emissions scandal has hit the company, but they also noted that challenging economic conditions in South America and Russia, and fluctuations in exchange rates contributed to this fall.

The recession in Brazil, and the falling Rouble, along with the low price of oil, has hit VW's spreadsheets hard.

The interim report from the car manufacturer showed that Volkswagen have put aside a whopping £80m to sort out potentially faulty airbags which had been supplied and made by Takata.

As for the emissions scandal, Volkswagen has set aside over £12 billion to get that fixed. Their financial woes are only just beginning.

TOPICS:   Motoring

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