VW profits down 80%
Car and light commercial manufacturer Volkswagen are to hold a crisis meeting after a report revealed that the company recorded a drop of 80% in its second quarter profits.This compared to the same period earlier in the year. However, Volkswagen did record a net profit of €283 million for the second quarter, but the drop in profits has left shareholders worried.
According to Irish Trucker, the group delivered a total of 3.1 million vehicles in the six-month period, down 5%. It reiterated a full-year forecast of a drop in net profit and sales compared with 2008, but did not give detailed figures.
Operating profit in the six months to June slumped 63.9% to €1.24 billion, but VW fared better than rivals, including Toyota. Deliveries of vehicles to its core German, Chinese and Brazilian markets even surpassed the figures of a year earlier, the company said, owing in part to government subsidies that will taper off later this year.