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Toyota falls behind VW in world's biggest automaker race
by Staff Writers
Tokyo (AFP) July 28, 2016


Volkswagen says net profit falls 57% in second quarter
Frankfurt (AFP) July 28, 2016 - Scandal-struck car manufacturer Volkswagen said Thursday that its profits fell in the second quarter by 57 percent to 1.15 billion euros ($1.3 billion).

Second-quarter profits were weighed down by almost 2.5 billion euros of special items, mostly related to 2015's diesel emissions cheating scandal.

"Further enormous feats of strength will be needed to contain the high costs of the diesel question," finance director Frank Witter said in a statement.

The group obtained provisional approval in July for a $14.7 billion settlement to US buyers of some Audi and Volkswagen diesel vehicles, putting one important element of the fallout behind it.

But risks remain from other legal cases dragging on in the US and Germany, where prosecutors have broadened their investigation into the diesel emissions cheating.

VW shares fell by just over two percent in early trading on the Frankfurt stock exchange in response to the result.

The full second-quarter figures come one week after a provisional release of better-than expected results for the first six months of 2016.

Thursday's figures were boosted by higher unit sales of luxury models from Audi and Porsche and mid-range Skoda over the first half of the year.

But the group's core Volkswagen-branded vehicles saw a decline of almost one percent in sales in the six months from January to June compared with the same period in 2015.

Across the whole group, unit sales took a seven-percent blow in the United States over the first half of the year but rose by almost the same amount in China, while western Europe saw a more modest increment of 2.5 percent.

Toyota is in danger of losing its crown as the world's biggest automaker this year as sales fall behind those of German rival Volkswagen, new figures showed Thursday.

The Japanese giant, which has held the title for four years running, was outsold by Volkswagen in the first half of 2016, as key North American sales fell and disaster-linked factory stoppages hit production.

The Camry and Prius maker sold 4.99 million vehicles in the six months through June, edging down from a year earlier.

Volkswagen sold 5.12 million vehicles globally in the same period, also ahead of third-placed General Motors which moved 4.76 million vehicles.

The German automaker had pulled ahead of Toyota in the first half of 2015 as well, until a massive emissions cheating scandal dented sales.

This year, Toyota saw first-half unit sales fall in North America -- a key market -- while US sales of its popular Prius hybrid fell by one-quarter.

The company was also hit by plant shutdowns linked to deadly earthquakes in Japan earlier this year.

Toyota previously warned that its annual net profit will fall as a stronger yen, and a slowdown in Chinese growth and other emerging markets, dent its bottom line.

Toyota, among other major automakers, has also been struggling to recover a reputation for safety after the recall of millions of cars around the world for various problems, including a deadly exploding air bag crisis at supplier Takata.

In 2008, Toyota broke GM's decades-long reign as the world's top automaker but lost the crown three years later as Japan's 2011 earthquake-tsunami disaster hammered production and disrupted the supply chains of the country's automakers.

In 2012, Toyota again overtook its Detroit rival, which sells the Chevrolet and luxury Cadillac brands, to grab the top spot globally.

anb-pb/aph

TOYOTA MOTOR

VOLKSWAGEN

TAKATA

GENERAL MOTORS


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