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Business

VW brand profits almost wiped out

Opening sequence

Opening sequence

Business

VW brand profits almost wiped out

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COMING UP:VW brand profits almost wiped out

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Transcript

00:00:00
>> Profits at the VW brand almost wiped out in the first quarter. The German car maker earning just 73 million euros on sales at its namesake unit. That's partly as the emissions cheating scandal drives some customers away. But Reuters Breaking Views columnist Olaf Storbeck says the brand's problems predate the crisis.
00:00:20
>> On an operational level Volkswagen is suffering from large cost overruns. They employ almost twice as many people as Toyota while making the same number of cars, and interestingly enough, the number of employees is still going up so in the first quarter, staff rose by 0.5% overall.>> The group as a whole, including brands from Skoda to Porsche, reporting a surprise jump in profit up more than 3% to nearly 3.5 billion euros.
00:00:54
>> Volkswagen's quarterly numbers are a bit of a mixed bag. The headline operational profit on the group level was better than analysts expected, which was mainly driven by Audi, the premium brand, which did better than many people thought.>> Even so, company Chief Executive Matthias Müller says 2016 will be a transitional and demanding year.
00:01:17
The firm still setting aside some 16 billion euros to cover the costs of the emissions scandal. Analysts watch and see if the company now seizes the opportunity to tackle its underlying problems or let a crisis go to waste.