Volkswagen’s Profits Double in 2nd Quarter on European Economy Growth

Volkswagen’s Profits Double in 2nd Quarter on European Economy Growth

Revenue-wise, Volkswagen is world’s seventh largest car manufacturer, and growing. Banking on growing European economy, the German carmaker have reported that its profits more than doubled in the second quarter of this year with, and has moved past the costs it had to bear as a result of diesel emissions scandal in the U.S. couple of years ago. VW have set aside US$20 billion for fines and settlement, and have already apologized, saying that change in its management will prevent from future wrongdoing.

Leaving out tax, the Volkswagen profits rose to US$3.7 billion (3.2 billion Euros) in the second quarter, substantially up from its 1.2 billion profit reported at the same time the previous year. Last year, VW had to contain costs worth of 2.2 billion euros after their diesel controversy, something that wasn’t the case this year. However, the profit were overall short of estimated 3.3 billion euros profits by market analysts. Collectively, the sales of all brands and groups under the automotive giant Volkswagen, such as Audi, Skoda, SEAT, Lamborghini, and Bentley, including VW itself, rose as much as 4.7% to reach overall profits of 59.7 billion euros for the company. North America and South America were other two major contributing regions for the prosperity of Volkswagen.

These solid figures strongly suggests that Volkswagen is not a company under pressure and is primed for more success in the near future, with expansion plans in Asia Pacific also showing fruitful results.

Profits Will Boost Technology Development

Volkswagen, alike most other leading automotive companies, are strongly investing on the development of electric cars or battery-powered as well as self-driving cars. These profits will help VW to formulate a stronger business model and dive into app-driven modes of transportation.

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Mukta Gaikwad

Mukta Gaikwad has been contributing to CMFE News not just her exquisite language skills, but also her valuable knowledge in the field of technology, science, and business. Her interests lie in exploring the impact of the ever-changing nature of technology on various industries and the global economy. A post-graduate in media, her first love is writing, which also shines through in her articles on consumer lifestyle.

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