Experiencing contraction in its profit margin. Volkswagen will offer more options in electric models | FASTENER EURASIA MAGAZINE
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Experiencing contraction in its profit margin. Volkswagen will offer more options in electric models

Volkswagen company announced in a statement, by 2028, 70 different models of electric vehicles are planned to launch the market. The recent problems with emission tests force the company to focus on the production of electric vehicles that have no emission problems.
 
  R&D activities for electric vehicles and the increasingly difficult certification of carburetor vehicles have led to a decline in the profit margin for the Volkswagen group's core brand. Profit margin, which was 4.2 percent, fell to 3.8 percent last year.
 
According to financial data the company announced, the Group's operating profit for 2018 amounted to 13.92 billion euros, an increase of 0.7 percent compared to the previous year. According to a survey conducted, the expected operating profit was 14.52 billion euros.
 
  The Group's biggest contributors to the operating profit are the Audi and Porsche brands. Audi's operating profit is 4.7 billion euros, while Porsche's 4.1 billion euros. The operating profit of the Volkswagen brand was 3.2 billion euros. With the decision to further expand electric vehicle models, the company is expected to produce approximately 22 million vehicles from electric vehicle production lines by 2028. The previous target of the group was 15 million vehicles. Volkswagen aims to achieve a 5 percent turnover for the end of 2019 and, accordingly, operating revenue of 6.5 to 7.5 percent on a sales basis.