VW apparently only earns twelve euros per car sold

According to a study, the ailing car manufacturer Volkswagen only earns twelve euros per car sold. Special charges, which totaled 8.7 billion euros, played a particular role, according to a study by the Center of Automotive Management (CAM), which was published on Thursday.

"The zero margin paints an overly negative picture of current business." At the same time, the adjusted margin of 3.8 percent shows that Volkswagen needs to further improve its cost base and profitability in order to secure long-term competitiveness.

Profits are under pressure across the entire industry. On average, car manufacturers would achieve a return of 3.6 percent after nine months; last year this figure was four percent. Two thirds of the companies made less profit. “If profits fall almost six times more than sales, that is an alarm signal for the industry,” said Stefan Bratzel, director of CAM. The transformation must be more focused on profitable innovations and more efficient structures.

According to the study, the industry average profit per car sold is 1,363 euros, compared to 1,409 euros a year ago. Mercedes increased its profit per car by 31 percent to 4,198 euros, while BMW earned around a third less than in the previous year at 3,059 euros.