A measure of just how badly Uncle cold-cocked VW over the diesel “cheating” thing is that the company hopes to maybe earn a profit again . . . about three years from now.
Volkswagen Group is “targeting fixed productivity gains” at its troubled core VW brand through 2020 by pushing cost savings, stemming overseas losses and launching more higher-margin cars as the carmaker battles to overcome its emissions scandal.
Positive development at Volkswagen’s namesake VW brand may continue throughout 2017, the automaker said on Friday, building on a strong rebound in the first quarter when cost cuts helped operating profit to surge to 869 million euros ($953 million) from 73 million a year earlier even as auto sales slipped.
“The substantial restructuring programs are bearing early fruits,” VW brand CEO Herbert Diess said at a press conference. “What’s now crucially important is for us to continue along this path and work through our tasks ahead.”
VW said it aims to raise productivity at its passenger-cars business by 7.5 percent in each of this year and next, and a further 5 percent in 2019 and 2020.
“We will critically review these financial targets and increase the guidance if necessary, as soon as we believe that what has been achieved is lastingly secure,” VW brand finance chief Arno Antlitz said.
The carmaker has pledged to further stem losses in North America, South America and Russia by rolling out more SUVs and pushing cost savings with a goal to reach break-even in these regions by 2020, Diess said.
Guessing how many electric cars that nobody will want and how many the feds will make them build anyway, will be the determining factor whether they get to earn a profit or not.
They will be lucky to sell one electric for every 200 diesels they were selling before…………………
I expect this whole debacle to pass. VW has a strong product and loyal buyers. I just left London this morning and there are so many VW and Audis if I were frozen like Capt America and revived today I’d think Germany won WW2.
The Brits love thier VW’s for style, panache and reliability. I talked to several local owners who tell me VW’s reputation for reliability is 2nd to none. In America the rep is different but I have my own ideas why. Anyway. VW has a strong product and a great engineering philosophy.
I think they’d do better if they brought some models like the Touran, Sharan and Polo to the US.
We took a Sharan Uber TDi to the train station. The driver told me he has 48k miles on it and the display said 44 mpg in London traffic. He told me it never gave him a hint of problem.
I think VW could do more sharing of tech than even they do now. Can you imagine a slightly detuned Cayman as the new Sirocco? Or a Boxster based Eos?
The VW Caddy would compete favorably with the Transit Connect.
I really look forward to what they are going to come up with.
I think they will come back better and stronger than ever. Could any other car maker you know of take a $25 bln hit and not only survive but make money 4 years later?
Also they as well as others learned an important lesson that may one day benefit all of us, that is, never and I mean NEVER cooperate with Uncle!