The operating margin at the brand fell to 3.8 percent from 4.1 percent, the magazine reported, putting it short of a target of 4 to 5 percent set by group CEO Herbert Diess, who wants to raise it to 6 percent over the medium term.

Volkswagen declined to comment on the report ahead of a news conference on its results scheduled for March 12. Another news conference on VW brand results is due a day later.

The company, based in Wolfsburg, reported preliminary 2018 group results a week ago that were weighed down by currency effects and supply bottlenecks caused by new emissions testing rules, and warned of a tough year ahead.