Volkswagen has ‘good chances’ to build on strong 2016 performance, says CEO

Volkswagen has “good chances” of building on its strong 2016 performance, when it swung to a record underlying profit despite its diesel emissions crisis, Chief Executive Matthias Mueller said.

Volkswagen has “good chances” of building on its strong 2016 performance, when it swung to a record underlying profit despite its diesel emissions crisis, Chief Executive Matthias Mueller said.

File photo of Volkswagen logos adorning a sign outside a dealership for the German automaker.(Reuters)

“The Volkswagen Group is in very robust shape,” Mueller said on Tuesday at the carmaker’s annual news conference in Wolfsburg.

Volkswagen expects group revenue to exceed last year’s record 217 billion euros ($231 billion) by as much as 4% this year and is forecasting an underlying operating margin of between 6 and 7%, compared with 6.7% in 2016, it said, affirming a forecast given on February 24.

Still, operating profit of its core autos division slipped further to 1.87 billion euros in 2016 from 2.10 billion a year earlier as the brand is struggling to implement a wide-ranging turnaround plan.