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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Volkswagen Brand CEO Positive about New Models
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