Volkswagen's Cost Cutting Takes Hold With A 40% Jump In Profit Despite Dieselgate

Volkswagen Group said first-quarter operating profit rose 40 percent even as its vehicle sales declined, a sign that cost cuts are materializing as the automaker pushes to overcome its emissions scandal.

Quarterly group operating profit increased to 4.37 billion euros ($4.77 billion) from $3.41 billion a year ago, VW said on Wednesday.

Results were helped by improving cost savings at VW's troubled core division, the carmaker said, sticking with expectations for the full-year group operating margin to come in between 6 and 7 percent after 6.7 percent in 2016.

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TheSteve - 5/3/2017 9:55:38 AM

+2 Boost

That's great for VW! It'll help them pay for the over US$20B in Dieselgate-related costs and fines.