INTERNATIONAL - Volkswagen’s namesake core brand is on track to post a record operating profit this year thanks to cost savings and its increased sales of sports utility vehicles (SUV’s), a senior manager of the unit said.
The Wolfsburg-based group faces heavy investments into cleaner and self-driving technologies and is has increased sales share of higher-margin SUVs to help fund an industry-wide shift toward low emission vehicles.
VW’s core brand in 2019 has gained market share and has increased its operating profit substantially, Chief Operating Officer Ralf Brandstaetter said on Wednesday in comments embargoed for Thursday.
He added the division had increased its share of SUVs sold to 42 percent in the United States and 37 percent in Europe.
Of envisaged cost savings of 3 billion euros by 2020, 2.6 billion euros have been realized at the end of 2019, Brandstaetter said.