Volkswagen profit jumps, but ‘great challenges’ ahead

Frankfurt am Main: Volkswagen on Wednesday reported a leap in second quarter net profit thanks to strong sales, but the German car giant warned that strict new emissions tests and global trade tensions posed “great challenges” in the months ahead. The Wolfsburg-based group said net profit jumped 6.8 per cent year-on-year to 3.3 billion euros ($3.8 billion) between April and June, beating analyst expectations. The positive result comes even after VW had to shell out another 1.6 billion euros “in connection with the diesel crisis”, as the fallout from its 2015 emissions cheating scandal rumbles on. evenues were up 3.4 per cent to 61 billion euros after the VW group — whose 12 brands include luxury Porsche and Audi as well as the more affordable Skoda — delivered a record 2.8 million vehicles in the second quarter.
Despite the good news, VW’s new chief executive Herbert Diess sounded a note of caution. “We cannot rest on our laurels because great challenges lie ahead of us in the coming quarters — especially regarding the transition to the new WLTP test procedure,” Diess said in a statement. —“Growing protectionism also poses major challenges for the globally integrated automotive industry.” — Reuters