Record losses at Skoda Auto in Q3

by   CIJ Linguistics
2020-10-30   06:32

Skoda Auto is reporting a record operational loss of CZK 469 million over the first nine months of the year, which amounts to a 60 percent fall compared to 2019. Multiple factors have conspired against the largest Czech automobile manufacturer, including the Covid-19 crisis and changes in the exchange rate. Those negative influences cancelled Skoda's success in reducing fixed costs and lower development costs. Skoda Auto's revenues fell nearly 26 percent to just €12 billion. Meanwhile, its mother company Volkswagen returned to profitability in the third quarter thanks to its revenues rising 3.4 percent to €59.4 billion. That was due to a large degree to brisk sales of its luxury brands Audi and Porsche.