Volkswagen Aims to Boost VW Car Unit Profit Margin to 6.5%
German automaker Volkswagen has reportedly set an internal target to increase the profit margin for sales from its VW car business to 6.5%. This represents a significant jump from the current margin of around 2%.
According to documents obtained by Business Insider, the margin target is part of a broader set of goals for 2025 aimed at improving costs and performance at Volkswagen's core car brand. However, there is no specific deadline for achieving this target.
When contacted for comment, the Volkswagen Group, which includes brands such as Porsche, Audi, Skoda, and Seat, did not immediately respond.
Based on the company's latest financial report, the VW car brand had a reported operating margin of 2.1% during the first nine months of 2024. This figure increases to 3% when adjusted for special items.