Dieselgate? Smieselgate!
After pundits decried that Dieselgate would be the death of Volkswagen, is reporting surging sales and record profits. The German car maker reported sales rising from 10.3pc to €56.2bn (£47.5bn), while operating profit was up 7.8pc at €4.4bn.
Our Volkswagen mechanics are relieved, and not just because they won’t be out of a job anytime soon. VW makes some good cars. And while the company did fraudulently outfit 11 million of its vehicles with “defeat software” that cheated emission tests set for pollution standards, the bottom line is their cars are still solid investments.
When Good Car Companies Make Terrible Decisions
That’s what made the scandal so frustrating. It’s not like Volkswagen had to cheat. It was already a good vehicle. But some managers chose to act unethically, and the company admitted as much. Criminal charges have been filed. Senior staff have been arrested and face trial.
What’s the secret to VW’s rebound?
“VW chiefs attributed the strong performance over the quarter to new launches and strong demand in Europe, as well as ‘positive exchange rate effects’ and cost savings; the car maker launched a massive efficiency programme in the wake of the scandal.”
And the company is understandably pretty happy to not only still be in business, but actively succeeding.
“Our efforts to improve efficiency and productivity are paying off,” said Matthias Müller, VW’s chief executive. “We are encouraged by today’s strong results. They strengthen our resolve to continue our chosen path with Together – Strategy 2025.”
