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		</div><p>Volkswagen has recorded an after-tax loss of €1.54 billion in the second quarter as the coronavirus pandemic shut down factories and closed dealerships.</p>
<p>The company sold 35% fewer cars and cut back its proposed dividend but said it had been able to safeguard its cash reserves and would make an operating profit for the full year.</p>
<p>The loss compared to a profit of €4.1 billion in the same April-June quarter last year.<br />
The company said the main reason for its lower profits was the sharp fall in customer demand.</p>
<blockquote><p>35% Reduction in cars sold by VW during the second quarter</p></blockquote>
<p>Chief financial officer Frank Witter said that “the first half of 2020 was one of the most challenging in the history of our company due to the Covid-19 pandemic”.</p>
<p>He said:</p>
<p>“At the same time, we introduced comprehensive measures aimed at reducing costs and securing liquidity early on, which enabled us to limit the impact of the pandemic on our business to a certain degree.”</p>
<p>The company said that the deliveries gap compared to last year was now narrowing each month, from being down 45% in April to 18% lower in June. It expects the drop to shrink to single digits in July.</p>
<p>It said it was able to expand its global share of the car market as the overall market contracted even more than the company’s sales.<br />
Net liquidity in the automotive division increased in the quarter to €18.7 billion due to measures taken to preserve cash and the placement of hybrid notes amounting to €3 billion.</p>
<p>The company also amended its 2019 dividend proposal to €4.80 per ordinary share from €6.50 per ordinary share. The cutback will enable the company to transfer €855 million in retained profits to 2020’s accounts.<br />
Volkswagen said operating profits for 2020 would be “severely lower” than last year but “in positive territory”.<br />
Based in Wolfsburg, Germany, Volkswagen Group’s brands also include SEAT, Skoda, Audi, Lamborghini, and Porsche.</p>
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