From a failed effort to make revenue out of the diesel-powered car business, the German Automobile company is now announcing a new plan to recover from their losses from the recent scandal Volkswagen faced.
In their recent announcement, Volkswagen announced that they may not continue with the manufacturing and the production of diesel cars but focus on cars with better technology instead. This is to help them recover from the emissions scandal and win back the trust of the general public. This plan, which was called Transform 2015+ includes the company’s initial announcement to increase worldwide investment. This investment’s aim is to increase the company’s brand presence on a global scale with products such as battery-electric vehicles, SUVs, and low-cost vehicles.
In a statement from the company’s brand chief Herbert Diess, the company’s plans include increasing their presence and the number of their activities in the United States. According to
The company have agreed then to pay not less than $15 billion worth of fees and fines involving the recall of at least 11 million diesel 2015 VW and Audi vehicles. This includes settlements with government regulators and customers. The company prior to the recall, admittedly announced that they installed technology within the said cars that allows the pollution controls to be deactivated. The said cars were sold worldwide with 8.5 million of the affected vehicles said to be in Europe. The scandal also led the CEO of the company to step down in the middle of the crisis in Volkswagen’s global business and damaged reputation.
VW Finance Overview Since Scandal
Volkswagen Sales which have declined immensely following the scandal and the recall of their diesel cars is now in an ambitious track to extend their brand presence in the United States through the introduction of battery-electric vehicles although the cars are yet to still be introduced by around 2021 in North America, the target sales per year of the said car is expected to bring the company back to its former high and promote them as the top automobile manufacturer in e-mobility.
This would come as a challenge as Volkswagen for the past couple of years have garnered a good quarter of sales from their production of diesel-powered cars as VW announced that they would not be producing the said units anymore but focus on the manufacturing of electric models instead. Volkswagen is expected to drive their revenue out of the sales of their newer SUV models and Audi models before the official release and introduction of the said electric cars.