The profit of Volkswagen brand (VOWG_p.DE) fell last year as the automaker emerged a difficult task of returning confidence, after a recent scandal, seriously rocked its reputation.
The German company said last month that it received a record operating profit in 2016, except for single instance, assisted by a strong performance from its Porsche sports cars and a turnaround in sales of Scania trucks.
On Tuesday, providing detailed information about its separate brands, the company said that the core operating profit at its VW brand fell 10% to €1.9 billion ($2 billion), with the profit margin slipping to 1.8% from 2% in 2015.
The company said that the drop in revenues and higher marketing costs it is a result of "diesel scandal", which has become a major factor in the decline in revenues.
Despite the fact that the group as a whole bounced back from the scandal, analysts view a turnaround at the VW brand as key to its future.