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World|business|May 31, 2016 / 03:48 PM
Volkswagen reports steep drop in net profit for Q1 2016

AKIPRESS.COM - volkswagen-emblem Embattled German car giant Volkswagen (VW) delivered more than 2.5 million vehicles to customers between January and March this year – about 12,000 more than in the same quarter a year ago. However, revenue from those sales had been down 3.4 percent at $56.7 billion, Deutsche Welle reports.

The 12-brand group's net profit even fell deeper, slumping 20 percent to 2.31 billion euros. In a statement, VW said it had delivered a "solid performance in a challenging market."

VW chief executive Matthias Müller added that he was satisfied with the company's start into 2016 – a year which he described as undoubtedly demanding. "We have succeeded in limiting the economic fallout from the diesel scandal and chalk up respectable results in very difficult conditions."

Europe's biggest carmaker is currently facing massive financial consequences from an emissions-cheating scandal which affects about 11 million of its diesel vehicles. In the first quarter of 2016, it has begun recalling those cars to refit software designed to cheat emissions tests.

Earlier this month, VW reported progress on reaching a settlement with U.S. authorities, reportedly including compensation for customers in the country. According to its earnings report, the carmaker sits on cash reserves of almost 26 billion euros, which according to VW's Finance and Controlling chief Frank Witter should be enough to weather the crisis.

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