Higher prices boost VW, BMW

STORY: Higher prices are boosting the bottom line at Germany’s big carmakers.

On Thursday (May 4) Volkswagen said first quarter revenue jumped by 21.5% to over $84 billion.

Profits fell from last year, but still beat expectations.

Besides higher prices, the auto giant was also lifted by strong demand in Europe and North America.

China was the big negative, with deliveries there down more than 14% over the period.

But the company said it was confident it could bounce back there with help from new models.

There was a similar story over at BMW.

It saw profit margins jump to over 12% in the first quarter, up from less than 9% a year ago.

Though sales dropped in Europe and China, the company said it saw an upward trend in March and April.

It says the U.S. market now looks robust, with slight growth in Europe and China stabilising.

The firm disappointed some traders by not raising its outlook for the year, citing high costs and stiff competition.

BMW shares rose over 2% even so.

VW gained around half a percent.