German automaker Volkswagen is putting a determined attitude in increasing its profitability to establish a stronger business next year. VW top executive counts on a bundle of new models to impact revenues.
VW Core Division Being Restructured
After its diesel emissions scandal, the world’s largest automaker needed to consider job cuts and retrenchments in parts and vehicle development to increase funding. Indeed it is one of VW’s current struggles.
The automaker has been in a major trouble after being tagged for cheating on its diesel-emissions test. It aims to be at the front of new technologies in the market to recover from its previous cheating.
Over 10 New Models This Year
Belonging to the 10 new models released this year is the top-of-the-line Arteon fastback and a revamped Polo subcompact. Herbert Diess, Brand CEO of VW, is positive that these all-time bestsellers would strengthen demand and bolster a turnaround.
Diess said in a statement, “We are making good progress. 2018 will be a strong year for VW. He believes that launching new products can boost a company’s profitability (operating margin).
VW’s Offensive Products
VW is aiming to maintain its 2017 first-quarter performance which pitched to 869 million euros compared to the previous year ago. He believes that introducing new and offensive products can help the company in the next months.
The company’s first quarter of 2017 operating margin soared to 4.6% from 0.3% from the previous year.
The new Polo is priced at 12, 975 euros and will be striking showrooms in October. The company is counting on its technology-packed Polo model to help renew its slow-moving sales especially in their European market. Records reveal that the deliveries decreased to 0.2% from the period of January to May. The polo is considered as the main product of VW to be released this year.
Expected Future Deliveries
The new Polo is expected to dominate Europe’s market, winning against Ford Fiesta and Renault Clio. All brands are struggling to earn the top spot.
By 2025, the expected European deliveries are eyed at 368,158 from this year’s 293, 700.
Research firm HIS Markit believes that the VW model can overcome the markets with no difficulty.
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