HERBERT DIESS

Turning the Page on Dieselgate

VW Diess  REUTERS-Ralph Orlowski
Mr. Diess hopes an SUV offensive with models like the Tiguan will lead to renewed growth. Photo: Reuters/Ralph Orlowski
  • Why it matters

    Why it matters

    Volkswagen views electric cars as the future, but Dieselgate has eaten away at the automaker’s profits, making it difficult to invest in new technology.

  • Facts

    Facts

    • Herbert Diess, chief executive of the VW core brand, says technical solutions have been worked out for 4.6 million of the 11 million diesel vehicles that have emissions-cheating software installed.
    • The VW core brand is clinging to its goal of achieving 6 percent profit margins though the fallout from the Dieselgate scandal has pushed margins down to 2 percent.
    • With little money to invest in new technology, VW has nevertheless set an ambitious goal of producing a million electric cars by 2025.
  • Audio

    Audio

  • Pdf

It’s been a summer of bad news for Volkswagen.

First the automaker agreed to a whopping $15.3-billion settlement in the United States. Then it stopped the sale of most diesel vehicles in South Korea, its second-largest market in Asia. Now Volkswagen faces lawsuits from Arkansas to Bavaria over losses from the drop in its stock value.

The automaker appears to be lurching from one crisis to another with no end in sight. But if you ask Herbert Diess, the chief executive of Volkswagen’s core brand, the automaker has nearly turned the corner in the emissions scandal once and for all.

“I am confident we can resolve most of the issues in 2016 and the rest in the first half of 2017,” Mr. Diess told Handelsblatt’s sister publication WirtschaftsWoche. “Then there will be upward trend for the core brand.”

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