COVID-19 drops over 80 percent of Volkswagen’s profit

covid-19 volkswagen

Covid-19 has brought the world in its knees in a short time. Countries are alone and fighting their own war before even thinking of helping others. Its hard to hear people are dying everyday from a virus that has shocked the world.

After countries in whole, even the biggest businesses seem to be struggling from Covid-19. Take Airbnb for example. From different sources, we heard that the biggest online hosting company will let some of it’s employees go. So sad.

In addition, even Volkswagen’s having troubles too.

“The global COVID-19 pandemic has significantly affected our business in the first quarter,” said Frank Witter, the group’s chief financial officer.

covid-19

German-based vehicle giant Volkswagen Group’s operating profit fell sharply by 81.4 percent to 904 million euros ($ 1 billion) over the first quarter of 2020, due to the impact of COVID-19 on the entire economy.

Group customer orders fell 23 percent to 2 million units. Moreover, vehicle production fell 24.8 percent to 1.99 million units and vehicle sales fell 25 percent to 1.94 million units, the vehicle giant said.

Revenue from the group’s sales, which owns several brands including Audi, Seat, Bentley, Bugatti, Lamborghini, Porsche, Ducati and Man, fell 8.3 percent to 55 billion euros in January-March. from 60 billion euros in the same period last year.

There was also a decrease in the number of group staff. The decrease was reported to be 0.2 percent from 671,200 to 670,000 for the same period.

Witter also added that the company has taken countermeasures in order to ensure liquidity and reduce costs.

“We continue to be strong financially,” he continued.

The virus, which first appeared in the Chinese city of Wuhan, has spread around the world making it a global pandemic.

Worldwide, the number of COVID-19 cases has risen to over 4,000,000 . Over 276,000 have died from infection with the disease.

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