VW warns of ‘Titanic’ effort to meet trade and emissions goals

Bloomberg

Volkswagen AG warned that it will take a huge effort to meet its profit goals this year, as the world’s largest automaker battles trade tensions and stricter emissions rules.
Tougher pollution-testing procedures, aimed at preventing a repeat of Volkswagen’s diesel-cheating scandal, will take effect next month and lead to delivery delays. The German manufacturer is also bracing for higher tariffs around the globe, which could particularly hit Audi and Porsche, the group’s main profit earners.
Reaching the company’s target for operating profit margin this year will be a “titanic task for the second half of the year,” CEO Herbert Diess, who just completed his first 100 days in office, said. Volkswagen indicated that it wouldn’t be able to repeat the 23 percent surge in profit it reported for the second quarter. Issues for the rest of the year include economic volatility, increasing competition, the ongoing diesel scandal and “a new, more time-consuming test procedure” in the EU, Volkswagen said.
Volkswagen shares fell 3.6 percent, and were down 1.8 percent at 149.56 euros in Frankfurt trading, taking the decline for the year to 10 percent.