Volkswagen’s profits rose in 2019 despite decline in car sales
Vollswagen Group Ireland Sales Rise in 2019
Volkswagen Ireland profits rose last year by 13%, despite wider industry downturn in new car sales.
Volkswagen Group Ireland is the country’s biggest car company and saw profits in 2019 of nearly €10.3 million, an increase of 13.2 per cent.
Volkswagen Ireland sells passenger cars, light commercial vehicles as well as Audi, Scoda and SEAT. All together, the revenue pulled in last year was €765.8m, a 3% increase year-on-year.
At the same time, operating costs rose by 3% from €737.7m in 2018 to €755.5m in 2019. After tax profits were €8.2 million, which was a 24 per cent increase from €6.6 million the previous year.
Group sales of new cars last year totalled 31,477, a slight decrease from the year prior (31,498) despite sales in the wider Irish car market falling by more than 7,000 or 6.7% from 125,557 to 117,100.
Overall, Volkswagen had the highest sales last year of any manufacturer with 13,775 new sold, while Skoda sold new cars 9,300, Audi 4,582, and SEAT 4,087.
Obviously, COVID-19 has a very significant impact on the new car market here in Ireland as well as globally, but Volkswagen dealerships here have put in some successful measures across the dealer network to improve sales.
So far this year, Volkswagen has sold 24,690 cars which equates to an almost 20 per cent drop since last year mainly due to the coronavirus but a company spokesman has said that they were cautiously optimistic about sales in 2021 despite the new VRT changes.