The Volkswagen Group’s profits have soared to their highest point since the ‘Dieselgate’ scandal broke, according to new figures released by the company.
In the first quarter of 2016, group profit before tax rose by a massive 44.3 per cent to €4.6 billion, one of the highest quarterly results yet recorded by Volkswagen.
Company bosses attributed the rise in profit to the extensive cost-cutting measures it employed after some of its vehicles were found to have cheated emissions tests back in 2015.
Despite this, Volkswagen has continued to sell a high number of vehicles with high profit margins, which saw the manufacturer’s operating profits rise to €869m from €73m the year before.
The emissions scandal also saw Volkswagen make a number of significant structural changes across its entire brand portfolio, which includes Audi, Porsche, Skoda, Bentley, Lamborghini, Bugatti and SEAT.
That included streamlining the development of future vehicles, cutting material costs by reducing complexity and altogether dropping models which were deemed to be unprofitable, along with cutting back on its motorsport ventures.
Despite the cutbacks, the Volkswagen Group succeeded Toyota to become the world’s biggest selling carmaker last year.
Chief executive Matthias Mueller said: “Our efforts to improve efficiency and productivity across all areas of the company are also paying off. The healthy quarterly figures strengthen our resolve to continue our chosen path.”
