VW’s third quarter profit dropped by a fifth due to the European crisis and the costs of a technology overhaul.
The automaker’s operating profit dropped to 2.34 billion euro ($3.04 billion), from 2.89 billion in 2011. VW, Europe’s largest automaker, reaffirmed its plans to increase revenue and vehicle sales by the end of this year, and to reach last year’s record profit of 11.27 billion euro.
In September VW saw the slowest monthly delivery growth for this year and the automaker even reported a double-digit decline in the European Union countries. The German automaker plans to surpass Toyota as the world’s biggest automaker by 2018, and it made a massive investment to roll out a new car platform to build small and medium-sized cars, such as the CC coupe and the Golf hatchback.
“The increasingly worsening economic situation in western Europe burdened the auto industry” between July and September, VW said in the report.
Last month Volkswagen USA posted its best September sales results since 1972, with a total of 36,339 units sold, accounting for a 34.4 percent increase over September 2011. Year-to-date, VW sales are up 37.2 percent, with September 2012 also being the 25th consecutive month of year-on-year growth for VW in the U.S.