VW Brand Was Less Profitable as Cuts Fail to Stem Crisis Fallout
- First-half VW brand profit margin drops to 1.7% of sales
- VW set aside $1.8 billion for scandal in second quarter
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Volkswagen AG’s efforts to make its biggest division more competitive fell short as the namesake VW brand’s profit margin dropped further behind those of rival European carmakers in the first half.
The marque’s margin shrunk to 1.7 percent from 2.7 percent a year ago, according to Bloomberg calculations based on a statement from the Wolfsburg, Germany-based company Thursday. That widened the gap between VW and its European mass-market competitors, as Peugeot maker PSA Group reported a 6.8 first-half margin from carmaking, while Renault SA achieved 4.7 percent.