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Volkswagen: the long road to recovery

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.

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  • avatar-1799
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    I've heard about Volkswagen 'diesel scandal' and it's a black spot on the company's reputation.

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