Volkswagen Reveals Record Car Sales Amid Emissions Scandal

0
54

Volkswagen has revealed that they sold more cars in 2016 than ever before. This is despite the emissions scandal that was announced last year. Volkswagen’s CEO called this “a strong sign of trust given to our company.”

Volkswagen also revealed that it had lost 3 billion Euros ($3.17 billion) in the first three quarters of 2016, mainly because of its diesel emission scandal.

Volkswagen has revealed that their car sales in 2016 reached 10.3 million and they sold 1.2 million more than in 2015, when it sold 9.1 million cars. Volkswagen claims to be the biggest automaker in the world, due to this achievement. The company also sells Audi and Skoda cars and many other brands such as Porsche and Lamborghini.

Volkswagen’s CEO, Matthias Muller called the sales figures a “strong sign of trust given to our company.” He also said that it means that Volkswagen has overcome the scandal and has plans for future plans to improve the company. 

Volkswagen also announced that its net loss was 1 billion Euros ($1.12 billion) between January and September 2016. Volkswagen claims that these losses are mainly due to the billions of Euros of costs for fixing their cars affected by the diesel emission scandal.

The Diesel emission scandal took place throughout 2015, when it was discovered that Volkswagen had fitted some of their diesel engines with illegal “defeat devices”. These devices would tell the cars that they were being tested to see if the emissions met legal standards, when in fact they didn’t. The lower emissions increased the fuel efficiency of these cars, which pleased car buyers and Volkswagen’s shareholders.

The Diesel emission scandal affected millions of cars worldwide and it cost Volkswagen over $20 billion to fix them. This has greatly reduced Volkswagen’s profit and slashed the company’s share price.

Volkswagen is still struggling with this scandal, as Muller stated: “We don’t yet have a technical solution for some of our models and we cannot yet estimate the costs involved”. They are still working on ways to fix these cars, which Volkswagen admitted is taking them longer than they thought.

In December 2016, Muller said that Volkswagen would work hard to “transform” the company into a much more customer-friendly and environmentally-conscious company.” He also announced a change in management, which will see many top executives leave the company after a failed bid to oust him from his position.

Muller was brought in to turn the company around after the emissions scandal and is still determined to rebuild its standing in the world. He said: “2016 was undoubtedly a very difficult year for Volkswagen, but we did not allow the task of transforming the company…to be neglected.”

Disclaimer:  The contents of this site, such as text, graphics, images, and other materials contained on the page are for general information purposes only. This article is not a substitute for professional advice on the topics mentioned. This article does not create any form of offers to any legal or professional service. The site assumes no responsibility for errors or omissions in the contents. In no event shall the site be liable for any special, direct, indirect, consequential, or incidental damages or any damages whatsoever, whether in an action to follow the content, negligence or other tort, arising out of the use of the contents of the article. The blog reserves the right to make additions, deletions, or modifications to the contents at any time without prior notice. The site does not warrant that the site is free of viruses or other harmful components. It may contain views and opinions which are those of the authors and do not necessarily reflect the official policy or position of any other author, agency, organization, employer or company, including the site itself. It also does not provide professional advice, diagnosis, treatment or any legal service. The site does not endorse official procedures, legal actions or qualified services and the use of its contents are solely at your own risk.

Previous articleSamsung Profit Set to Hit a high Thanks to Chips
Next articleEuropean Banks Sitting on “Mountain” of Bad Debt