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Volkswagen brand says profitability drive faces cost risks

Reuters  |  WOLFSBURG, Germany 

WOLFSBURG, Germany (Reuters) - Volkswagen's core autos division said costs for its electric-car programme, technology and a new emissions testing procedure will stand in the way of major profitability gains this year and in future.VW's namesake brand expects its operating profit margin to climb to between 4 and 5 percent this year, a range it is also targeting for 2020, the carmaker said on Wednesday.Cost reductions, efforts to weed out complexity in parts and models and rising sales of higher-margin sport-utility vehicles helped to more than double the profitability benchmark to 4.1 percent ...

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First Published: Wed, March 14 2018. 15:07 IST
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