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This Article is From Oct 03, 2016

Volkswagen's Electric Foray Likely to Erode Profit Margin: Chart

Volkswagen's Electric Foray Likely to Erode Profit Margin: Chart

(Bloomberg) -- Volkswagen AG's plan to switch from dirty diesels to electric cars while delivering a 15 percent return on capital at the automotive division will be tough, according to Bloomberg Gadfly's Chris Bryant. The brand's operating margin is just 1.7 percent and the change will require investment in retooling factories and retraining workers.

To contact the reporter on this story: Chris Bryant in Frankfurt at cbryant32@bloomberg.net.

To contact the editors responsible for this story: Jennifer Ryan at jryan13@bloomberg.net, Sheldon Reback

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