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VW Profit Boost Clouded by Diesel Cheating

VW Profit Boost Clouded by Diesel Cheating VW Profit Boost Clouded by Diesel Cheating

Volkswagen Group’s provisions for its diesel-cheating scandal increased by 6.4 billion euros ($6.8 billion) last year, as the automaker continued to tally the damages from the worst business crisis in its history. That lifts Volkswagen’s emissions-related expenses to 22.6 billion euros since the scandal erupted in September 2015. The costs overshadowed improving business as the company’s operating profit before special items rose 14% to 14.6 billion euros in 2016, helped by record sales of luxury Audi and Porsche cars. The company’s sales margin rose to 6.7% from 6% a year earlier, VW said in a statement Friday, Automotive News reported. “In spite of the charges and the challenges arising from the diesel crisis, we can be satisfied on the whole with the group’s business development,” Chief Financial Officer Frank Witter said in the statement. “We must use great discipline to achieve the set targets in all divisions, in order to return to the path of success in the coming years.”

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