VW sees profit, but figure falls

Volkswagen plant in Chattanooga produces Passat vehicles. Despite a decline in U.S. sales this year, VW's overall corporate sales are up this year and Volkswagen is expected to become the No. 1 car maker in America.
Volkswagen plant in Chattanooga produces Passat vehicles. Despite a decline in U.S. sales this year, VW's overall corporate sales are up this year and Volkswagen is expected to become the No. 1 car maker in America.

German automaker Volkswagen saw net profit fall 19 percent in the first three months of the year as it struggled to deal with a costly scandal over cars equipped to cheat on diesel emissions tests.

The company also faced plummeting sales in Russia and Brazil due to those countries' troubled economies.

Profits for the January-March period fell to $2.63 billion from $3.26 billion a year earlier, the company said today.

Earnings and profit margins slipped at luxury brand Audi, one of the company's major money-makers. The profit margin fell to 9.0 percent from 9.7 percent in the first quarter of 2015.

Things went better at the company's Porsche brand.

Volkswagen, based in Wolfsburg, Germany, faces heavy costs recalling and fixing cars that are equipped with engine-control software that could detect when a car was on a test stand and turned off the emissions controls during everyday driving.

CEO Matthias Mueller said in a statement that the company "managed to limit the economic effects of the diesel issue and achieve respectable results under difficult conditions."

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