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Volkswagen is back into profit thanks to Chinese luxury cars buying and Brookfield Asset Management Simon Property Group bought J.C. Penney assets

The German automaker Volkswagen announced its quarterly results and returned into positive as demand for their luxury cars increased in China. The demand from China also helped them to cover the 1.1% drop in vehicle deliveries due to the current pandemic. The Company is expecting a profit for the full year after they recovered business through sales of its luxury vehicles in China increased by 3%. The company took other measures such as cost-cutting to counter the COVID-19 impact.

The company said that its net liquidity improved from 18.7 billioneuros to 24.8 billion euros at the end of the third quarter. The operating profit was 3.2 billioneuros compared to 4.8 billion euros a year before. The operating return on sales in the automotive division went down to 5.4% from 7.4%. The company is expecting less profit for 2020, compared to 2019. VW was hit hard by the pandemic, resulting in a loss of 1.7 billion euros in the second quarter.

J.C. Penney Co announced on Wednesday that it has signed a deal for the purchase of the assets with Brookfield Asset Management, Simon Property Group, and with company’s first-lien leaders. The retailer filed bankruptcy in May when the company has to close it 850 stores due to the COVID-19 pandemic. The company will be operating till holiday seasons outside chapter 11.

Brookfield and Simon are the two biggest landlords of J.C. Penney, will buy most of the J.C. Penney’s retail and operating assets through cash and loan.

J.C. Penney said in a statement that signing the asset purchase agreement will allow them to complete the financial restructuring of the company.

It was reported earlier by different sources that negotiations between J.C. Penney’s lenders and potential buyers were unsuccessful after the lenders missed several deadlines.

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