Volkswagen profit dips on slowing Chinese demand
The Peninsula
Frankfurt, Germany: German automaker Volkswagen pledged Thursday to focus on cutting costs following a drop in second quarter profits as the group gra...
Frankfurt, Germany: German automaker Volkswagen pledged Thursday to focus on cutting costs following a drop in second-quarter profits as the group grappled with lower demand in China and restructuring expenses.
The 10-brand auto giant reported a net profit of 3.6 billion euros ($3.9 billion) for the April-June quarter, a 4.2 percent fall from a year ago.
Revenues nevertheless rose 4.1 percent to 83 billion euros, VW said, boosted by a strong performance in the financial services unit.
Car deliveries, however, dipped 3.8 percent to 2.2 million units.
Increases in Western Europe and North and South America failed to offset a 19 percent plunge in deliveries in the key Chinese market, where European carmakers are facing fierce local competition and a slowing economy.
