Volkswagen Profit Plunges Amid Diesel Scandal

Volkswagen Profit Plunges Amid Diesel Scandal

Profits for Volkswagen’s core brand dropped 86 percent amid its massive diesel scandal.

The company released financial data from the first quarter, with the core Volkswagen brand seeing its quarterly operating profit dropping from 514-million euros ($572-million) to 73-million euros ($81-million). Its operating margin was reported as a meager 0.3 percent. For the most part, this isn’t surprising, considering the company is enveloped in one of the biggest automotive scandals in history, after admitting to cheating on diesel emissions tests in the U.S. last September.

Fortunately, the Volkswagen Group isn’t just about the core Volkswagen brand. The Group as a whole saw its profit rise 3.4 percent to 3.44-billion euros ($3.83-billion) from 3.33-billion euros ($3.71-billion) last year. Revenue did, however, fall 3.4 percent to 51-billion euros ($56.78-billion).

SEE ALSO: Volkswagen Finds US Penalties for Diesel Scandal Excessive

The company remains optimistic however, with CEO Matthias Mueller saying it “achieved respectable results under difficult conditions.” He also admitted that “2016 will be a transitional year for Volkswagen that will see us fundamentally realign the group.”

Helping bolster the group was Porsche, which had its operating profit increase to 895-million euros ($996.5-million) from 765-million euros ($851.77-million). Audi remained fairly flat at 1.3-billion euros ($1.45-billion) while Bentley suffered a 54-million euros ($60.12-million) loss compared to last year’s 49-million ($54.56-million) profit.

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