Volkswagen Tops Profit Estimates on Cost Cuts

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Oct. 30 (Bloomberg) -- In today’s “Global Outlook,” Bloomberg autos reporter Chris Reiter examines third-quarter results from Volkswagen as the German automaker beat profit estimates on cost cuts. He speaks on Bloomberg Television’s “The Pulse.”

Today i got the sense that the v.w. is saying life is still going to be tough and the focus still remains on cost cutting.

A slightly less optimistic outlook maybe.

Yeah, i think that is fair enough to say.

I think volkswagen, there is some doubt as to how they are doing now.

The european downturn hit the german market pretty hard this year.

They have been struggling with that.

What you are seeing on the markets now, the stock is going up because there is just some relief on the fact that their third was pretty decent and better than expected on operating profit line, but as you said, a bit light on revenues.

It is -- there is relief on the market today but it is a question of where does volkswagen really stand?

It is interesting.

The more luxury end of the markets trade 10 times.

V.w. trades around seven times.

Is there a sense that the market is stabilizing now?

The share prize has gone up.

Is the market stabilizing?

You can get an idea where next for the company.

Is that going to continue to improve?

What are analysts saying?

Analysts by and large are pretty -- well, they are upbeat on volkswagen, at least today at any rate.

But where volkswagen is going will depend on what you see in the luxury car market.

They took up some of the slack that audi is leaving behind.

They are kind of where the question marks are.

They are starting to struggle.

They lost about a percentage point of margin in third quarter compared to mercedes which gained a percentage point of margin.

Audi's growth is slowing.

That is some of the reason behind volkswagen's uncertainty and some of the message they are sending, they are not really sure where they are going and they are not sure where audi is going because they are a huge factor for v.w.'s profits going forward.

Where does audi go from here?

Chris, thank you very much indeed.

Let's stay with the car theme.

This text has been automatically generated. It may not be 100% accurate.


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