FRANKFURT: Volkswagen’s flagship VW brand missed its margin target in 2018 as operating profits declined despite growth in top-line revenues at the German carmaker, news weekly Spiegel reported, citing unpublished figures.
The operating margin at the brand fell to 3.8pc from 4.1pc, the magazine reported, putting it short of a target of 4 to 5pc set by group CEO Herbert Diess, who wants to raise it to 6pc over the medium term.
Volkswagen declined to comment on the report ahead of a news conference on its results scheduled for March 12. Another news conference on VW brand results is due a day later.
The company, based in Wolfsburg, reported preliminary 2018 group results a week ago that were weighed down by currency effects and supply bottlenecks caused by new emissions testing rules, and warned of a tough year ahead.