Volkswagen: improved full-year forecast after strong quarter

Has Volkswagen finally gotten out of the infamous Dieselgate scandal? After positive third quarter results, the board has now increased its full-year forecast. However, major lawsuits still threaten the German car builder.

2.3 billion euro profit

The German car manufacturer (with brands like Audi, Seat and Skoda) sold 2.45 million cars in the third quarter, up 4.4 % compared to the year before. Turnover grew 1 % to 52 billion euro, while its company profit grew 17 % to 3.75 billion euro. Its net quarterly profit reached 2.34 billion euro.

These results are much better than its 1.67 billion euro loss from its third quarter last year. Back then, the infamous Dieselgate scandal surfaced, prompting the group to stop selling cars, to halt its manufacturing process and to create a cash reserve to pay for all of the damage claims that would undoubtedly follow. In one of those, an American court has approved a settlement that will cost Volkswagen 14.7 billion dollars (nearly 14 billion euro).

The Wolfsburg-based company still feels confident however: the board increased its full-year forecast from a 5 % turnover drop, announced prior to the summer, to “group turnover at the same level as last year’s level“. That means it should be around 213 billion euro as the company feels it will sell more than 9.93 million cars, which would also trump last year’s numbers, although it is looking towards China to achieve that.