VW's profitability may take a hit from electric vehicle shift

Berlin

VOLKSWAGEN said that profitability could take a hit this year as the carmaker invests billions of euros in electric vehicles (EVs) and launches a raft of new models.

Europe's largest automotive group, which reported record 2017 earnings on Friday, said that it expected a return on sales for 2018 of between 6.5 and 7.5 per cent before special items, after reaching 7.4 per cent last year. It expects revenue to exceed the 2017 record of 231 billion euros (S$374.8 billion) by as much as 5 per cent.