Volkswagen’s Challenging High Annual Profit
European biggest car making company, Volkswagen has stated a sudden increase in its annual profit for 2014. It is however, cautious of the challenging market climate in this present year.
Volkswagen profits increased 21 percent higher than the previous year in 2014, it made£7.8 billion/€10.8 billion as net profits, meeting all set targets for 2014.
The car making company preempts a “fierce competition” in the year 2015 hence; profit might not be as high as expected. Hans Dieter Poetsch, the finance head of Volkswagen said that “given the subdued growth prospects in regions outside China, there is no guarantee that 2015 will be a successful year. Continuing political uncertainty, strong currency fluctuations and tough environment in markets such as Russia and Brazil present major challenges”.
Because of the pre-empted challenging 2015, the shares of Volkswagen had suddenly dropped and then regained to remain at €219.4.