In Volkswagen Group's financial report, some interesting things happened:
1) Core brands (Volkswagen Passenger Cars, ŠKODA, SEAT, etc.) performed well, with sales reaching 1.192 million units, revenue of 32.8 billion euros, operating profit of 2.1 billion euros (up 21% YoY), and an operating profit margin of 6.4%.
2) Premium brands (Audi) sold 243,000 units with revenue of 13.7 billion euros (down 19%), operating profit of 470 million euros (down 74%), and an operating profit margin of 3.4%, lower than core brands.
3) Sports luxury brand (Porsche) sold 71,000 units with sales of 8.1 billion euros (down 13%), operating profit of 1.2 billion euros (down 30%), and operating profit margin dropping to 14.8%.
Especially Audi - they really need to cut costs, otherwise such rapid sales decline is unsustainable. Even Porsche isn't selling as well or making as much money as before.
Source: Zhu Yulong-YL
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