Volkswagen AG executives must be thrilled that the company acquired Audi and Porsche many years ago because it was those two brands that led VW to a record underlying profit for 2016 of $15.5 billion, up 14% from 2015.
The record comes despite larger-than-predicted charges the maker needed to take due to its ongoing diesel emissions scandal. The tab for that has shot past the $21 billion mark going forward, and as a result it missed its operating profit predictions.
VW took a bigger-than-expected charge of $6.8 billion for the emissions-test rigging scandal. Predictions were a charge of about $4.5 billion. (more…)