Volkswagen rides out impact of new pollution rules on car sales
October 31, 2018
Volkswagen posted forecast-beating third quarter profit, weathering a storm of lower car sales, higher spending and new pollution rules which dented earnings at rivals Daimler (DAIGn.DE) and BMW (BMWG.DE).
Carmakers across the globe are struggling to lift investment spending on electric and self-driving vehicles while shouldering heavy investments to overhaul combustion engines to meet more stringent emissions standards.
With an eye on costs, VW also signaled it was open to alliances in the areas of batteries and autonomous driving including with specialist rivals such as Waymo (GOOGL.O).
Adjusted operating profit totaled 3.51 billion euros ($4 billion) in the three months to the end of September, down 18.6 percent but better than the 3.21 billion euros predicted in a Reuters poll of banks and brokerages.
VW shares surged more than 4 percent as cost savings helped to offset reduced vehicle sales.
Despite the new WLTP rules, VW said it expects new vehicle sales to rise moderately this year, after delivering 10.74 million vehicles to customers in 2017.