Volkswagen‘s truck division intends to substantially boost its success this year as deepening cooperation in between the MAN and Scania brand names and enhancing abroad markets stimulate service, it stated on Monday.
Volkswagen introduced a new truck & bus division in 2015 to take on worldwide competitors Daimler and Volvo. VW is targeting a long-lasting operating margin target of 9 percent, up from 6.1 percent in 2016.
“We are not making every effort to become a volume champion, we wish to be the most successful ones,” chief executive Andreas Renschler informed journalists, referring to enhancing markets in Western Europe, Russia and China.
However finance chief Matthias Gruendler explained a substantial enhancement in financial results needs a rebound in the key Brazilian market where the VW department commands a 37-percent share of the nation’s commercial-vehicles market.
Total truck and bus sales in Brazil have been dropping for 4 years however demand is anticipated to rebound slightly in the second half of the year amid the enhancing economy with a chance for stronger growth in 2018, Gruendler stated.
“Brazil has always been an important market and is defined by a high degree of cyclicality,” Renschler stated.