BERLIN—Volkswagen AG said Thursday that profit dropped nearly 10% in the first quarter, hit by slowing growth in China, fresh diesel-related charges, and weaker earnings in its core brands. But it surprised a market that had factored in worse news, boosting the company’s share price.
The results, largely in line with analysts’ expectations, are reflective of a global auto industry that is struggling to cope with slower growth in China—the world’s biggest auto market by sales—uncertainties in the global economy in the wake...
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