Volkswagen weathers pandemic with $10.7B profit

Volkswagen said Friday it made better than expected earnings of 8.8 billion euros ($10.7 billion) following tax in 2020 despite the pandemic. The world’s No. 2 automaker said the accelerated retrieval of China, its biggest single market, and resilient sales of luxury vehicles aided the bottom line.The company gave an optimistic outlook for this year, saying it might take momentum from your more powerful second half of year into earnings moving forward. It said that it was trying for earnings at the top part of its forecast range of 5.0-6.5% returns on sales, and predicted sales revenue would be”significantly higher,” assuming successful containment of the COVID-19 pandemic.The results underline the uneven impact of the pandemic. Manufacturing companies like Germany’s three big carmakers– Volkswagen, BMW and Daimler–have seen their sales and earnings hold better than those that services, tourism and air travel companies.The earnings figure was 37% from 2019. Sales revenue was down 11.8% in 222.9 billion euros, but fell significantly less than the 16.4% drop in unit sales on 9.2 million automobiles. That supposed Volkswagen surrendered the name of largest carmaker by volume that it had held since 2016 into Toyota, which offered 9.5 million vehicles.Volkswagen common stocks traded 1.2% higher following the earnings announcement. More financial details are to be announced March 16 in the firm’s yearly news conference.The Wolfsburg-based carmaker said that it had required significant strategic steps throughout the entire year to accelerate its push into software and digital technologies and solutions. It tripled its sales of electric vehicles to 422,000 before more rigorous European Union limits on emissions of carbon dioxide, the principal greenhouse gas blamed for global warming. The organization’s brands include luxury carmakers Audi and Porsche, in which earnings per vehicle are higher than for more basic transportation.The set’s profits were boosted by the Porsche Taycan, a high-performance four-door sedan which starts at $79,500 for the normal model in the U.S. Sales of that version reached 20,000. The Taycan is a part of German carmakers’ efforts to compete with electric car pioneer Tesla, which has eaten into their sales of luxury cars. “The fiscal results today available are far better than originally expected and show what our company is capable of accomplishing, particularly in a crisis,” Chief Financial Officer Frank Witter said in a statement. “We mean to take over the powerful momentum from the substantially better second half into the present calendar year, along with the programs for reducing our fixed costs and in procurement will make us stronger in the long term.

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