...Declining but Resilient Margins: The upgrade of Volkswagen AGs rating to ,,A in May 2014 reflected the groups resilient performance in the face on an adverse and competitive market, and its increase in investments. Group operating margin declined to 5.9% in 2013 from 6% in 2012 and 7.1% in 2011 ¡ excluding the robust double-digit margins from its Chinese operations reported as joint ventures ¡ and Fitch Ratings expects profitability to decline further in 2014 from weak pricing in Europe and weakening sales in other regions. However, we expect operating margins to rebound to more than 6.5% by 2016 as benefits from the groups new platform increase and the product portfolio strengthens further. Above-Average Business Profile: The ratings reflect the groups unparalleled product portfolio in the auto and heavy-truck segments. They also reflect its broad diversification, leading market shares and an unrivalled potential for cost savings and economies of scale. Modular Toolkit Strategy: Fitch...
