Volkswagen is cutting dividend after their profits fell down 71 percent

Volkswagen is cutting dividend after their profits fell down 71 percent

When everybody cuts jobs and closes plants, VW bought 50 % of Porsche AG; it announced its 3-year investment 25.8bn EUR plan, creating a dominant, strong image in the car industry.

Volkswagen AG revealed just now it has suffered a drop of 71 % in operating last year's profits, exceeding the initial fears of the firm. On Friday, the share price of the brand dropped due to its profitability disappointment this year on the 4th quarter, reported autonews.com.

The group of course said it will recover, keeping very close its purpose of overtaking Toyota in the long term, but for now Volkswagen said it would be cutting down the payouts (dividend). Giving you the details about finance, the operating profit of the company plunged 71 % to 1.86bn Euro (2.53bn Dollars) past year.

Volkswagen proposed a dividend cut of 17 % to 1.66 Euro for preferred share. The voting shares of the firm are controlled by Piech and Porsche families, Qatar plus the home German county of Lower Saxony.

Last year in December, VW reached a deal with Suzuki on the buying of 19.9 % treasury piece for 222.5 billion yen (2.49 billion Dollars), taking advantage of the amazing exposure of Suzuki to the rising market in India.