Volkswagen’s flagship VW brand missed margin target in 2018

Volkswagen’s flagship VW brand missed its margin goal in last year as operating profits reduced despite growth in top-line revenues at the automaker, news weekly Spiegel reported on Friday, mentioning unpublished numbers.

The operating margin at the brand dropped to 3.8 percent from 4.1 percent, the magazine reported, putting it short of a goal of 4 to 5 percent set by group CEO Herbert Diess, who wants to increase it to 6 percent over the medium term.

Volkswagen refused to discuss the report prior a news conference on its results scheduled for March 12. Another news conference on Volkswagen brand outcomes is due a day later.

The company reported preliminary 2018 group results a week earlier that were weighed down by currency effects and supply bottlenecks due to new emissions testing regulations, and warned of a tough year ahead.