Volkswagen to Post Outstanding 2017 Results

Volkswagen will report excellent group results this year, according to its chief executive, helped by the expected record vehicle sales and by spending cuts.

Largest automaker in the world, Volkswagen, to report excellent results this year. 

The popularity of the automaker with motorists appears to have weathered the storm following the emissions scandal of September 2015, which has cost the company billions of euros in penalties and fines.

“It will certainly be quite outstanding in operational terms,” Matthias Mueller, CEO of Volkswagen Group, said on a report. 

Volkswagen is due to publish a detailed 2017 results on March 13.

The Volkswagen CEO predicted last month that the group deliveries would exceed the 2016 record of 10.3 million vehicles.

The cost cuts at the core passenger-cars division have caused the largest automaker in the world to increase its profit target for the year, and it has upgraded its mid-term profit and sales guidance.

According to Matthias Mueller, the proposals by the European Commissions for progressive cuts in the automakers’ average carbon dioxide emissions by 2025 and 2030 will “cause us real pain.”

The Wolfsburg-based Volkswagen admitted to cheating in diesel emissions tests in the United States. It has set aside about 25 billion euros or $30 billion to cover related fines, vehicle repairs, and faces thousands of lawsuits worldwide.

Mueller also critiqued the prolonged political deadlock in Germany, which still has no new government as Chancellor Angela Merkel continues to search for a coalition partner three months after the federal elections.

“This is taking too long,” Matthias Mueller stated. “We must become capable of acting again, for this purpose sometimes also unpopular decisions are necessary.”

Volkswagen to Invest INR 7,600 Crore

Volkswagen Group plans to invest INR 7,600 crore in India, as the largest automaker in the world seeks to launch a flurry of vehicles and to expand its capacity to shrug off its underperformance in one of the fastest-growing markets.

The carmaker group will spend the money to build a new manufacturing line at its existing facility at Chakan in Pune.

The company will build an engineering center and develop products. The developing of electric vehicles is also under consideration.

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