Dieselgate Recovery?

A Silver Lining for Volkswagen

ARCHIV - VW-Neuwagen stehen am 05.11.2015 in der Morgendämmerung an einem Volkswagen Autohaus in Hannover (Niedersachsen). Foto: Julian Stratenschulte/dpa (zu dpa "VW-Markenabsatz geht im Abgas-Skandal weiter zurück" vom 13.11.2015) +++(c) dpa - Bildfunk+++
Dieselgate has bent but not broken Volkswagen to date.
  • Why it matters

    Why it matters

    VW’s underlying strength signals the carmaker has emerged from the Dieselgate scandal intact, even if it is hardly out of the woods yet.

  • Facts

    Facts

    • VW admitted last September that it had manipulated the engines of 11 million diesel cars around the world to cheat nitrous-oxide emissions tests.
    • On Thursday, VW said after-tax profits plunged 36.8 percent in the first half of this year, but operating profit that excludes the one-time scandal costs rose 7.5 percent.
    • Car sales also increased 1.5 percent over the first half to 5.12 million worldwide. Only North America saw a drop.
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    Audio

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Volkswagen would be chugging along just fine if it weren’t for a massively damaging diesel scandal that continues to chip away at its quarterly profits.

That seems to be the message from the German carmaker’s first-half figures released Thursday morning. Profits may be down but, despite everything, the underlying picture is of a carmaker that remains one of the largest and most stable in the world.

Volkswagen recorded a sharp drop in profits over the first half of this year as it continues to deal with the fallout of the damaging Dieselgate scandal. VW admitted in September that it manipulated the engines of 11 million diesel cars worldwide to cheat emissions tests.

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