Wednesday, August 2, 2017

VW “Right On Track” After 6-Month Report

By: Sebastien Bell
With strong returns, doubling profits, and rising deliveries in the first half of the year, Volkswagen’s outlook is good for 2017.
Following a very shaky 2016 marred by the dieselgate scandal, there was no guarantee that the Volkswagen brand would do anything but flounder this year. That has not been the case, though.
“The Volkswagen brand is on the right track,” said brand CEO Herbert Diess. “There is strong demand for our cars throughout the world and our strategic realignment is showing positive effects on business operations.”
Between January and June, the Volkswagen brand managed to move 40 million euros worth of vehicles around the world, which led to an eight percent hike in revenue for the brand. Along with cost saving measures, that led an operating profit of 1.8 billion euros ($2.1 billion), twice as much as the first half of 2016.
That means, according to VW, that the brand is matching expectations.
“We have successfully embarked on a new phase in our company,” said Diess. “Our objective is to position Volkswagen in such a way that it is fully and completely viable for the future so that we can continue to play a leading role in the automobile world of the future.”
Volkswagen feels, therefore, that they’re back on solid footing and, according to CFO Frank Witter ready to cope with transformations in the automotive industry.
That means that the automaker can get back on the offensive with new models to grow sales even further.
“We want to win market shares with new, attractive and emotional vehicles at the same time as further improving our competitiveness,” said Diess. “We want to use the positive momentum that we can feel throughout the company and in the marketplace to step up the pace both for the realignment of the Group and business operations. The Volkswagen brand is going on the offensive again”

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