China slump to cut VW profit by more than 1b euros: magazine

[FRANKFURT] Volkswagen's China manager Jochem Heizmann is readying a cost saving programme because the carmaker's full-year group profit could fall by more than 1 billion euros due to weak demand in the country, Manager Magazin said.

Year-to-date, profit margins at the firm's Chinese joint ventures are around 25 per cent below last year's level, the German magazine said, without citing sources.

If sales remain at the low levels seen in June, then group profit could be down by as much as 2 billion euros by year-end, the Magazine said.

Volkswagen was not immediately available for comment.

Volkswagen has a joint venture with China's FAW Group Corporation and with SAIC Motor.

REUTERS