VW group profits: Interesting reading

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Deleted96908

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I guess many of you would have seen this in AutoCar last week, apologies for not posting sooner. It's the first time back home for a while.

Interesting reading don't you think?
 
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The only surprise there , for me , is that SEAT makes a loss .

I'd have rated them alongside Skoda .
 
Weird, they use shared platform, engines etc.

Is this an inter group tax swizz of some sort for VAG?
 
Weird, they use shared platform, engines etc.

Is this an inter group tax swizz of some sort for VAG?

You're looking at the massive difference in profit per unit between VW & Audi? I think you can be fairly sure VAG know more about tax liabilities etc than the German Revenue Commissioners.
 
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I am a huge VW fan, which is why I don't see the point in Audi except for those wanting to pose eg with latest Apple product (RS cars excepted). This just reinforces my thinking - stick four rings on it, market it to the masses as a fashionable item and make a killing.
 
John Jones Jr said:
You're looking at the massive difference in profit per unit between VW & Audi? I think you can be fairly sure VAG know more about tax liabilities etc than the German Revenue Commissioners.

Mainly VW, Audi, Seat and Skoda.
 
LOL at how VAG make more out of each Porsche than each Bentley...
 
Perhaps a reflection on the Spanish economy--- depressed home market?

Very possibility but I don't think Seat was ever profitable for VAG.
 
Weird, they use shared platform, engines etc.

Is this an inter group tax swizz of some sort for VAG?

I suspect there is some creative accounting there. Maybe Spain offers the best aid package for loss leading companies.
 
I am a huge VW fan, which is why I don't see the point in Audi except for those wanting to pose eg with latest Apple product (RS cars excepted). This just reinforces my thinking - stick four rings on it, market it to the masses as a fashionable item and make a killing.

Chalk and Cheese, just bought my first Audi after looking at many makes, I especially liked the Tiguan and the Q3, but quite frankly the VW inside looked like a cheap version compared with the Q3, I am not saying it wasn't well built and perfectly screwed together (as most cars are now) but inside it just looked very down market compared with the Audi.

And as its the inside I sit and look at every journey thats a biggy for me, don't give a toss what anyone else thinks it looks like outside, I'm on the inside looking out :D

Oh and actually the price difference was very little.
 
I suspect there is some creative accounting there. Maybe Spain offers the best aid package for loss leading companies.
Maybe, but it could just as easily be the relatively low volume by comparison to Skoda.

The interesting bit for me was that Audi is the clear profit "engine" brand for the group. Bentley is largely an irrelevance, and Porsche is a nice little earner - no great surprise there.
 
Looking in more depth at VW's 6 month return, it states:

The [VW passenger car brand] operating margin reached 2.1 per cent (3.0 per cent) in the first six months. The Volkswagen brand has launched an efficiency program in order to reach its target operating return on sales of at least six per cent by no later than 2018.​

Seems therefore that the current VW car performance is not acceptable, with the intent?? of bringing it in line with Audi, considering there's no mention of Audi's profits being in need of a similar overhaul.

Also, we need to take account of provisioning whereby past losses can be offset against the current tax year (in many countries, not sure about Germany). So, would assume that Porsche in particular will still be reeling from the failed takeover of VW some years ago - which almost bankrupted them. Resulting in this case, with the victorious prey consuming the stricken predator.

..
 
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