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You are here: Home Members Warwick Business School Annual results positive for Volkswagen but tougher times ahead

Annual results positive for Volkswagen but tougher times ahead

Posted by Warwick Business School at 13 March 2019, 13:50 CET |
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Expert comment from Christian Stadler, Professor of Strategic Management at Warwick Business School and author of the book Enduring Success on long-lasting corporations. He is an expert on the car manufacturing industry.

Professor Christian Stadler, of Warwick Business School, said: "This is a positive result for Volkswagen at a time when so many other car manufacturers have seen profits fall.

"Like its rivals, it has been hit by new emissions-testing rules in Europe.

"The ongoing 'dieselgate' emissions scandal has also cost billions of pounds, but when people buy a VW car the environment is not high on their list of priorities, so it has not affected sales too much.

"The company is right to prepare for a more difficult year in 2019 as the global economy slows and the trade war between the US and China takes its toll on car manufacturers.

"China is VW's biggest market, but customers there are reluctant to make big investments because they don't know what the future holds.

"VW is also right to invest heavily in electric and hybrid models. This new technology will see more competitors fighting for market share, particularly government-backed companies in China and US tech firms. It is vital that existing manufacturers embrace electric cars of they are to remain competitive."

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