Volkswagen - operating profit 2006-2018

Volkswagen's operating profit from FY 2006 to FY 2018 (in million euros)

by I. Wagner, last edited Aug 9, 2019
Volkswagen - operating profit 2006-2018 Volkswagen’s operating profit rose 0.7 percent in 2018 over the previous year and now stands at a record 13.92 billion euros. Since the costly diesel scandal, Volkswagen’s reputation seems to have recovered and many performance indicators are now above pre-scandal figures. This is impressive considering that in both 2017 and 2018, the company had significant one-off costs related to the diesel scandal. The automotive industry in the United States may be struggling to sell new sedans, including about 80 percent of Volkswagen models, but VW has much larger markets in Europe and the Asia Pacific. Both regions are increasing in deliveries and revenue. Consequently, VW’s operating profit is expected to increase between 6.5 and 7.5 percent year-on-year. These expectations are a sign of great confidence despite volatile global exchange rates and upcoming changes in European engine emissions regulation.
Scandal and recovery

The German car manufacturing group had suffered a major hit in 2015, after it came to light that many of its diesel engine vehicles did not meet U.S. clean air targets, and engines and test results had been tampered with. In attempt to rectify the issue, the company announced they would spend 16.2 billion euros recalling and buying back vehicles, as well as implementing new equipment. As a result of their fraudulent activity, Volkswagen were given a 2.8 billion U.S. dollar fine from the United States with more private and governmental action lawsuits to be launched across the globe. In light of the scandal, the reputation of VW dropped substantially, and the company is expected to lose out on 200 billion U.S. dollars in sales over a ten-year period to 2025. That said, the company is back on its feet for now. In fact, the VW Golf was the highest selling car in Europe between July and December of 2018 - and the third highest selling was the VW Polo.
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Volkswagen's operating profit from FY 2006 to FY 2018 (in million euros)

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