The Volkswagen Group was profitable in Q3 of this year, thanks in part to surging Chinese demand for luxury models from the likes of Audi and Porsche.
The carmaker expects to post a profit for the full year as well, adding that its business “recovered noticeably” in Q3, with premium car sales increasing by 3%. A series of cost-cutting measures launched earlier this year to counter the impact of the pandemic also aided this growth, according to Reuters.
Overall net liquidity went from 18.7 billion euros ($22 billion) at the end of Q2 to 24.8 billion euros, or a little over $29 billion at current exchange rates.
“[The cost cuts] had as much of an impact as the continuing improvements in the situation in key sales markets,” said VW, whose Q3 operating profit was 3.2 billion euros ($3.78 billion), compared to 4.8 billion euros the previous year.
However, while its full-year 2020 profit will be “severely lower” than in 2019, the figure will still be in “positive territory.”
VW had posted a loss of 1.7 billion euros in Q2 of this year following a massive hit in demand caused by the COVID-19 pandemic that led to restrictions on movement, economic crises and people losing their jobs around the globe.
In the end, having multiple premium carmakers in your portfolio can be extremely beneficial to any automotive group, especially when certain markets have an affinity for expensive products. Take Porsche, for example, who shipped more cars this year in the Asia-Pacific, Africa and Middle East regions than in the first three quarters of 2019.