Volkswagen Holding Its Ground
CBJ — German automaker Volkswagen has had to wade through the choppy waters of its 2015 diesel scandal, but nonetheless it seems to be treading water with only a slight profit drop in its first quarter.
As part of a contingency fund, Volkswagen had set aside more than $1.1 billion for legal risks associated with the problems from four years ago.
The automaker reports that its after-tax profit fell to $3.4 billion from about $3.7 billion in the same quarter a year ago. Group sales revenue rose by a bit more than 3%.
Auto companies are facing multiple challenges, including slowing sales in China, stricter emissions standards and trade disputes between various countries. They are also under pressure to invest in new technologies to compete against tech companies pushing into auto related areas such as electric, ride-sharing and autonomous vehicles.