Volkswagen expects productivity at its core autos brand to keep expanding in the months before because of cost cuts and full availability of higher-margin models launched in 2017.

“We have costs under control and are making good progress on raising productivity,” stated brand finance chief Arno Antlitz. “We will continue this course rigorously in the upcoming months.”

Europe’s largest automotive group had reported earlier that negative effects of 300 million euros ($363.18 million) from embracing new accounting standards resulted operating profit to fall 3.6 percent in the first quarter.

Without the modifications, revenues came in slightly over 2017’s 4.37 billion euros.

Profitability at the Volkswagen brand slipped to 4.4 percent from 4.6 percent on advance expenses for its electric-car program and expenditure on new combustion models.