VW Profits to Fall Due to Weakness in German Market
That might also be the case with Europe’s largest automaker, Volkswagen, as the state of the overall European market is affecting market sentiment in Germany.
Bloomberg expects that VW will announce an operating profit of €2.3 billion ($3 billion) for the third quarter of 2012. This would be a 20-ish percent compared to last year, the first one since the 2009 global recession.
However, VW is still far better off than European rivals like PSA Peugeot Citroen and Fiat Group, who are reporting unprecedented losses.
VW also has a brand new Golf generation coming up, which will be produced side by side with the old one until the end of the year. The Golf is their biggest money maker, but margins will be tight in the competitive European market.
What crisis? This crisis!