VW Squeezes Costs to Brace for Cash Drain From Diesel Damages
- CFO calls margin gain first tangible sign of cost-cut effort
- Company sticks to full-year target amid economic ‘challenges’
Volkswagen Drives Into SUV Market
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Volkswagen AG’s push to squeeze costs from its struggling namesake car brand provided a critical lift to earnings as the world’s biggest automaker braces for an unprecedented cash drain from the diesel-cheating crisis.
First-quarter operating profit widened to 7.8 percent of revenue from 6.8 percent a year earlier, Wolfsburg, Germany-based company said Wednesday in a statement. The improved margin is key as the carmaker faces a cash outflow this year in the “double-digit billion-euro range” to pay for damages from the emissions scandal.