The negative impact on the economy was mainly due to lower sales volumes caused by the covid-19 epidemic, the development of exchange rates and also extraordinary expenses related to emissions.
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These impacts were partially offset by lower fixed costs and the costs of developing and optimizing product costs. This was announced today by the parent company Volkswagen.
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Revenues of the Mladá Boleslav carmaker fell by 25.9 percent to 12 billion euros (329 billion CZK).
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Volkswagen, on the other hand, is back in the red
On the contrary, the entire German automobile group Volkswagen returned to profit in the third quarter. This was due to demand for luxury cars in China, which offset a 1.1 percent drop in sales due to the covidu-19 pandemic. Year-on-year, the Group’s operating profit fell by a third to EUR 3.2 billion (CZK 74.4 billion). The Group expects to report a profit for the entire financial year, which will probably be significantly lower than last year.
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Sales between July and September of Volkswagen fell by 3.4 percent year on year to 59.4 billion euros (1.6 trillion CZK), the carmaker reports on its website.
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In the second quarter, Volkswagen fell to a loss of 1.7 billion euros. The main culprits were restrictive measures against the spread of coronavirus and the consequent drop in demand.
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Sales recovered significantly in the third quarter, as demand for its luxury cars, such as the Audi and Porsche brands, rose three percent in Volkswagen’s China. The company is also benefiting from cost reductions, which it started at the beginning of the year due to the pandemic.
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Reducing costs “had the same impact as continuously improving the situation in key sales markets,” the group said.
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The Volkswagen Group owns 12 brands. These include VW, Audi, Seat, Skoda, Bentley, Bugatti, Lamborghini and Porsche passenger cars, MAN and Scania trucks, as well as Volkswagen commercial vehicles and Ducati motorcycles.
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