Prestige Wealth Solutions Qatar — VW Experiencing Profit Increase in 2017
Volksvagen enjoyed an increased profit for the first quarter of 2017. The car marker put cost cuts into action, which were considered overdue, but they are starting to show that they were effective, as the company’s profits begins to soar this year.
Increased Operating Profit for First Quarter 2017
The improvements are impressive when it comes to the operating profit for the first quarter. The largest division saw an increase which moved to 869 million Euros, which is staggering when compared to the seventy three million the year before. Other companies, including BMW and Daimler also reported good results for the first quarter of this year.
Changes that took place and that are now proving successful includes reducing the complexity of parts by streamlining vehicle development. They have also dropped their unprofitable models and moved to areas and brands that answer to market needs quickly.
Volkswagen investors have mentioned that its the changes at the namesake brand of VW that has always been holding the high R&D and fixed costs, this is what has resulted in VW being more appealing. Last year Toyota and VW were considered the world’s biggest selling car makers.
It shows that the company’s efforts to increase and improve productivity and efficiency throughout all divisions is showing positive results this year. The company has set their long term goals to increase operating profits to four percent by the year 2020. The company has reported their best quarterly results, which showed their group operating profit increase by a whopping forty percent to 4.37 billion Euros.
The increase in profit is impressive as the twelve brand group sales continues to decline. Other quarterly results included Audi’s luxury division dropped their profit from 1.3 billion Euros to 1.2 billion Euros.
We can learn by what Volkswagen has done and reduce costs in order to improve wealth on a personal scale. We can assist you to ensure you reduce your taxes while increasing your wealth, while cutting costs to see a higher profit in the long run.
We provide you with years of experience on a global scale and our team of financial advisors are ready to assist you without delay.