Volkswagen reports drop in earning

Volkswagen reports drop in earning

Volkswagen continues to churn out bad news. The latest reports in says that the company has come out with their quarterly reports and they have posted a drop in overall earnings. The drop is quite significant at 6.7% and this has surprised the market analysts. The company says that the low revenue reports are due to a one-time financial effects and have come out with strong operating figures and rising sales in Europe.

The company had earlier this year announced big discounts worth 10 percent on some of its most popular models. This resulted in upward sales figure for their popular models like Golf and Touran van. Also benefitted from this news were models like Polo, new Passat model and its Fox models. However, the disappointment came from the big markets like USA and other countries of North America.

VW executives blame the dropping sales in North America on the quality problems and the late start in introducing the revamped Jetta.VW Chief Executive Bernd Pischetsrieder said while talking to the company investors: “We had serious quality problems in our Mexican plant. The situation in the U.S. remains disastrous.”

the market however was not discouraged and the shares of the company improved slightly at the stock market. The company said it delivered 2.56 million cars during the first six months.