After reporting an increase in both sales revenue and operating profit in the first half of 2017, Volkswagen brand boss Herbert Diess has warned competitors that the automaker is “going on the offensive again”.
Although the Volkswagen Group slipped into second place in terms of global sales so far this year, the VW brand managed to deliver a little more than 2,9 million vehicles, with strong growth in the United States, South America and Russia.
In the first six months of the year, sales revenue rose by about 8% to €39,9-billion (about R610,1-billion), while operating profit was doubled, reaching €1,8-billion (approximately R27,5-billion) in the first half of the year. The board of management of the Volkswagen brand says it expects operating return on sales to be at the “upper end of the range” from 2,5 to 3,5%.
“The Volkswagen brand is on the right track. There is strong demand for our cars throughout the world and our strategic realignment is showing positive effects on business operations,” said Diess.
“We have successfully embarked on a new phase in our company. Our objective is to position Volkswagen in such a way that it is fully and completely viable for the future so that we can continue to play a leading role in the automobile world of the future,” Diess added.
Jürgen Stackmann, Volkswagen brand board member for sales, said that the company has reason to be positive heading into the second half of the year.
“In some core regions, we have recently recorded significant growth again, also as a result of our broad-based model offensive, which is being very well received by the markets. New models such as the Polo, Arteon and Tiguan Allspace give us reason to be positive about the second half of the year,” said Stackmann.
Diess added that VW’s “strategic focus” for the remainder of the year would be on the continuation of the “largest model offensive in the history of the brand”, based on the automaker’s plans to expand its SUV range to 19 models by 2020.
“We want to win market shares with new, attractive and emotional vehicles at the same time as further improving our competitiveness. We want to use the positive momentum that we can feel throughout the company and in the marketplace to step up the pace both for the realignment of the group and business operations. The Volkswagen brand is going on the offensive again,” said Diess.
