VW CEO is optimistic about future of company
FRANKFURT— Volkswagen AG’s new chief executive officer, Herbert Diess, in his first earnings report at the helm of the world’s largest automaker stressed the imminent overhaul under his watch will strengthen the company’s ability to adapt to accelerating industry change. The German manufacturer benefited from record vehicle deliveries in the first quarter, though it failed to entirely offset headwinds from a stronger euro and new European Union accounting rules that took effect in January. Without the hit resulting from a change in how derivatives are valued, adjusted earnings would have been slightly higher year-on-year.
“Our goal is to transform the Volkswagen Group into one of the industry’s leading companies in terms of profitability, innovative power and sustainability,” Diess said Thursday. “The quarterly results confirm that we are on the right path.”
VW picked Diess, 59, for the top job this month in the biggest management shuffle since the 2015 diesel-emissions scandal. He’s pledged to accelerate decision making while tackling a seismic industry shift toward electric cars and digital services that threaten to undermine the industry’s traditional business model.
The shares advanced 1.9 per cent to 170.1 euros ($265 CAD) in Frankfurt.
While Volkswagen’s stock has returned to pre-scandal levels and its profits have recovered, the company is still dealing with the aftershocks. German authorities last week searched offices of the Porsche and Audi luxury-car units, while a U.S. House committee this week sought Diess’s testimony for a new investigation into allegations of cheating outside the United States.