As a result, Volkswagen brought home €42.7 billion in sales revenue, an increase of eight per cent over the same period the year before, translating to a 20 per cent increase in operating profit at €2.1 billion.
However, the company had to make €1.6 billion in one-off expenses due to processes related to the diesel emissions cheating scandal, dropping that figure to €0.5 billion.
The increase in sales – 6.3 per cent up on the 2.93 million units sold in 2017 – was partly attributed to the company’s strong SUV offensive, which has led to marked growth in all regions.
The new Touareg went on sale beginning in the second quarter of the year, joining the bestselling Tiguan and the smaller T-Roc, which has received 100,000 orders since it was introduced late last year. An even smaller T-Cross will follow.
The results are telling, as within just one year, Volkswagen’s share in the global SUV market went up from 13 per cent to 18 per cent, and its piece of the European market pie jumped from 17 per cent to 25 per cent. The biggest gains, however, were made in the United States, where its share almost quadrupled from 10 per cent to per cent.
Overall, the company recorded mid to high single-digit growth in deliveries both in Germany and in major automotive markets in Western Europe, China and the US. In Russia and Brazil, the figures went up by over 20 per cent. A higher share of sales were made up of high-margin SUVs, improving company earnings; Volkswagen also made productivity improvements and expects a cost saving of around €2.2 billion by the end of the year.
Even so, Volkswagen is not resting on its laurels, as it said that it will need to make additional funds to be able to transition itself to electric mobility and autonomous driving, as well as for its digital initiatives from its own resources.
The company’s board of management and its works council will decide on further measures and work together to continue to be sustainable and competitive in the future.
The company will retain its financial forecast for the full year, despite the impending changeover to the new, more time-consuming Worldwide Harmonised Light Vehicle Test Procedure (WLTP).
Volkswagen expects sales revenue to increase by up to 10 per cent and an operating return on sales before special items by between four and five percent , resulting in a positive cash flow once again, before special items. SHARE THIS STORY USING ANY OF THE BUTTON BELOW ⬇ PLACE YOUR TEXT ADVERT BELOW ⬇⬇⬇