Volkswagen Group’s earnings recover in light of strong luxury cars demand in China
On Thursday, Volkswagen Group (VOWG_p.DE) reported that its sales returned to profit during the third quarter.
The German multinational automotive manufacturing company said that the strong demand for luxury cars in China helped offset a 1.1% drop in vehicle deliveries amid the coronavirus pandemic.
“The coronavirus remains a central problem. However, this situation now is anything but relaxed,” Volkswagen AG’s Chief Financial Officer Frank Witter said in a conference call with reporters.
Volkswagen AG stated that it expects to post the company’s full 2020 profit soon. The automotive manufacturer also added that its business “recovered noticeably” in the third quarter as its premium vehicles’ sales in China went up by 3%.
According to Jefferies Group LLC’s (JEF) Analyst Philippe Houchois, Volkswagen’s profit results were just “solid performance with strong cash but relatively muted in the context of the (auto) sector recovery.”