Volkswagen's profit halves, deliveries recovering
The world's largest carmaker, Volkswagen, reported a near-50% drop in its 2020 adjusted operating profit on Friday.
But there were signs of hope, as it said deliveries had recovered some ground in the fourth quarter.
Full-year operating profit, excluding costs related to its diesel emissions scandal, came in at $12.2 billion.
Its shares, which had been down as much as 2%, turned positive and were up over 4% by early afternoon.
Sales at the German giant rose 1.7% in December, at a time when new car registrations in Europe dropped nearly 4%.
But like its rivals, Volkswagen faces numerous challenges from lockdowns.
It's also being impacted by a global shortage of chips needed for production.
VW foresees tough competition in developing electrified and self-driving cars.
The merger of Fiat Chrysler and Peugeot-owner PSA to create the world's fourth-biggest automaker, Stellantis, adds to the pressure.
Volkswagen said this week that it missed EU targets on carbon emissions from its passenger car fleet last year.
For that it faces a fine of more than 100 million euros, or about 121 million dollars.
