Wealth Management by

Audi’s profits rise

August 3, 2014 2:21 am

Audi recorded higher second-quarter operating profit, as gains from record luxury-car sales outweighed the impact of spending on technology and foreign expansion, Gulf Daily News has reported. Volkswagen’s flagship division, accounting for over 40% of VW group profit, is setting up production facilities in Mexico and Brazil, aiming to assemble more cars outside Germany than within its home country for the first time in 2014. Operating profit edged up 1.5pc in the quarter to EUR1.36bn ($1.8bn), reflecting growth in sales of models such as the A8 high-end saloon and the Q7 three-row sport-utility-vehicle, Audi said. Audi’s investment drive, based on a five-year record EUR22bn budget to fund model, plant and technology projects, is weighing on the carmaker’s profitability.