INTERNATIONAL – Volkswagen on Tuesday said the operating return on sales at its core VW passenger car brand would come in at the lower end of its 4 to 5 percent target range this year.
Volkswagen cited the costs of preparing its passenger cars for tougher emissions rules, higher distribution expenses and upfront investments.
Recently, The company posted the forecast-beating third-quarter profit, weathering a storm of lower car sales, higher spending and new pollution rules which dented earnings at rivals Daimler and BMW.
Carmakers across the globe are struggling to lift investment spending on electric and self-driving vehicles while shouldering heavy investments to overhaul combustion engines to meet more stringent emissions standards.
Adjusted operating profit totalled 3.51 billion euros ($4 billion) in the three months to the end of September, down 18.6 percent but better than the 3.21 billion euros predicted in a Reuters poll of banks and brokerages.Reuters