Detroit Bureau on Twitter

Posts Tagged ‘vw profit falls’

VW Brand Profit Slammed by Diesel Emissions Scandal Costs

U.S. remains "core market," says CEO Mueller.

by on Mar.14, 2017

VW CEO Matthias Mueller holds the wireless fob for the Sedric robotic car at the Geneva Motor Show.

Volkswagen revealed a classic good news/bad news scenario on Tuesday morning. After reporting record group profits last month for 2016, the automaker now says operating earnings at the flagship VW brand took a sharp hit as a result of the maker’s diesel emissions scandal.

The automaker has so far agreed to spend nearly $25 billion on fines and settlements in the U.S. alone as a result of the scandal, and that doesn’t include a hefty increase in marketing costs since the diesel engine rigging was revealed in September 2015.

Subscribe Now!

Nonetheless, Volkswagen Group CEO Matthias Mueller put a positive outlook on the maker’s current situation, insisting it was “back on track” after one of the worst crises in its eight-decade history. Mueller himself took home 7.8 million euros, or $8.5 million, in pay and other forms of compensation for 2016.

(more…)