Volkswagen car dealership Parkway Derby has blamed adverse publicity over Diesel engines and the ongoing VW emissions scandal as performance at the firm spiralled in the latest trading year.
The company, based in Pride Park, saw pre-tax losses spiral to £5,569 compared with a pre-tax profit of £1.9m in the previous year. Turnover also fell from £149.7m to £138.8m.
A spokesman said: “2016 proved to be a very challenging year. The new car market being extremely competitive with manufacturers fighting for market share.
“This impacted the profitability significantly as gross margins were squeezed and volume-related bonus targets being difficult to achieve.
“The adverse publicity of the diesel engine and the VW emissions disclosure affected both new and used vehicle sales across the group negatively, resulting in a decrease in turnover.
“As a business, Parkway continues to look at ways to maximise on its returns, through strong management and leadership, whilst constantly reviewing the business, its performance and its opportunities.”