Unless you’ve been living under a rock for the past year (if so, cool), you’ve undoubtedly heard about Volkswagen being handed down some tough sanctions after its emissions scandal. In its attempt to reconcile the scandal, Volkswagen has already found itself profitable again, which was confirmed in the company’s full-year outlook published recently.
“In light of the wide range of challenges we are currently facing, we are satisfied overall with the start we have made to what will undoubtedly be a demanding fiscal year 2016,” said Volkswa
gen chairman Matthias Müller in a statement. “In the first quarter, we once again managed to limit the economic effects of the diesel issue and achieve respectable results under difficult conditions.”
While Volkswagen sales dipped 3.4 percent overall to just under $56.7 billion, the loss ended up being greater than many analysts foretold. Analysts polled by Reuters predicted losses bringing Volkswagen to around 700 million higher. The extra loss in revenue came as foreign exchange movements became disadvantageous.
But even with the loss in revenue, Volkswagen shares in Frankfurt recently rose one percent. However, Volkswagen ability to continue on with increased profits is directly contingent upone economic conditions in South Africa and Russia, as well as on exchange rate developments worldwide.
These sales figures go on to show what many seemed to already know: people don’t typically care about the amount of emissions released from their vehicle. As one Volkswagen manager recently put it, “Thankfully, the bulk of the customers don’t give a flying [expletive deleted] about these scandals.” Only time will tell if the Volkswagen manger was right in his statement.
Sources: thestreet.com, forbes.com
Larry H Miller Volkswagen Tucson 