Volkswagen Truck & Bus lifted its operating profit to €1.7 billion in 2017
Volkswagen Truck & Bus has recorded a 12.1 per cent increase in revenues in the 2017 fiscal year due to a strong increase in vehicle sales.
The group, which incorporates MAN, Scania and Brazil-focused Volkswagen Caminhões e Ônibus, recorded revenues of €23.9 billion on the back of a 26.8 per cent lift in operating profit to €1.7 billion, before special items are considered.
Vehicle sales lifted in almost all world regions, with a strong Chinese market largely responsible for the Asia region’s 21.1 per cent increase in unit sales to 17,170 vehicles during the year.
Volkswagen Truck & Bus chief executive Andreas Renschler said the group had enjoyed a successful year – the third since the group was created in 2015, with revenues rising roughly 8.2 per cent every year.
“We are creating additional value every day – for our customers as well as for our shareholders,” he says.
Volkswagen released the group result after results for each marque were announced last week, with Scania profits reaching €1.3 billion on the back of a 13.2 per cent increase in revenue to €2.8 billion.
Scania had achieved record vehicle sales and revenues in 2017, the company said, with these volumes offsetting higher production costs it had experienced.
Expanding its fleet care portfolio with a new service developed for uptime-sensitive operations with strict time slots and high daily utilization of vehicles had also helped to bolster profits, the company says.
The “Fleet Care with Uptime Guarantee” offering enables maintenance and repairs to be carried out on weekday evenings and nights as well as during weekends, without interfering in a company’s day to day business.
At the same time, MAN Truck & Bus recorded an 8.6 per cent increase in revenue to €10 billion while operating profit rose 27.9 per cent to €532 million.
MAN had focused on reducing fuel consumption, cutting emissions, alternative drives and alternative fuels over the course of the year, as well as launching digital brands MAN digital services and Rio.
A recovering Brazilian market had helped Volkswagen Caminhões e Ônibus regain leadership in the truck market and second place in the bus market in 2017, the company said.