Volkswagen’s namesake core brand is on its way to post a record operating profit this year due to cost savings and its boosted sales of sports utility vehicles (SUV’s), a senior manager of the unit stated.
The Wolfsburg-based group deals with heavy investments into cleaner and self-driving technologies and is has boosted sales share of higher-margin SUVs to help fund an industry-wide transition toward low emission vehicles.
The automaker’s core brand in 2019 has gained market share and has boosted its operating profit substantially, Chief Operating Officer Ralf Brandstaetter stated on Wednesday in comments embargoed for Thursday.
He added the division had boosted its share of SUVs sold to 42% in the United States and 37% in Europe.
Of envisaged cost savings of 3 billion euros by next year, 2.6 billion euros have been realized at the end of this year, Brandstaetter stated.
“On this basis, we can secure profitability so that we can systematically invest in the electrification and digitization of our products,” the executive stated, referring to both cost cuts and the higher share of SUVs.
He suggested though that expenses in German plants were still too high and that productivity must be boosted there.
