The ill-effects of bright-burning incentive fires in much of Europe, ebbing sales in Russia and Brazil, together with trendbucking double-digit car sales losses in the still expanding US market have left their mark on the Volkswagen car brand.
But much of the slack has been taken up by its Škoda budget brand which almost doubled its nine months operating profits to €651m after posting a Prestige-Sector operating margin of 8 per cent during the third quarter - a level that even Mercedes’ car division wouldn’t mind boasting about
Škoda's 3rd quarter operating
Volkswagen Cars, the current laggard in the group, ended this year’s first nine months with an operating margin of just 2.3 per cent, compared with 2.9 per cent during the corresponding period last year.
However, the company launched an efficiency programme for the VW Car brand aimed at lifting its operating margin to "over 6 per cent by no later than 2018".
reach the ten million deliveries mark this
VW Group CEO Martin Winterkorn
talking about VW Group targets
In terms of VW Group's operating profit, the company is now forecasting an operating return on sales of between 5.5
per cent and 6.5 per cent in 2014.
Nine months through the current year the group’s operating margin rose slightly to 6.4 per cent from 5.9 per cent. It reached 6.6 per cent during the 3rd quarter, bettering the respective 6 per cent and 6.5 per cent reached during this year’s first and second
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