VW exec faces arraignment in diesel scandal
- Author: Zachary Reyes Feb 25, 2017,
Feb 25, 2017, 7:15
VW's Chief Executive Matthias Mueller said the carmaker was now well set for the years ahead.
Despite the damage to its reputation by the "Dieselgate" scandal, the group delivered 10.3 million vehicles in 2016, driven by strong demand in Europe and the Asia-Pacific region.
That allowed VW to overtake Toyota and claim the crown of the the world's top-selling vehicle maker.
VW said it would propose a dividend of 2.06 euros per preferred share, more than the 1.86 euros expected by analysts on average, and 2.00 euros per ordinary share for 2016.
VW reported a net profit of 5.1bn euros for a year ago, bouncing back from a 1.6bn euro loss for 2015 in the wake of the emissions-cheating scandal. VW is scheduled to enter the plea in federal court in Detroit March 10. VW group sales rose 4 billion euros to 217.3 billion euros in 2016.
"Volkswagen is very solidly positioned in both operational and financial terms". When VW couldn't design an engine that met the new standards, company executives authorized the creation of a so-called defeat device - software that detected when the vehicle was undergoing testing and switched to more effective emissions controls, US prosecutors said.
But it has not offered any compensation to the millions of European drivers affected, to the dismay of EU officials who have piled pressure on VW to show the same generosity as in the US.
BERLIN-Volkswagen AG swung to a profit in 2016 after its biggest-ever loss in 2015 and also unveiled a new executive pay structure to quell investor ire over big bonuses paid to top management in the wake of its emissions-cheating scandal.
German auto giant Volkswagen said it was capping the chief executive's pay package at 10 million euros as it moved to rein in top brass salaries in the wake of the "dieselgate" scandal that has cost the company billions.
The new limits could reduce VW's maximum outlay on executive pay by up to 40 percent, the company said.
Managers will lose their annual bonuses if the automotive group's operating profit stays below 9 billion euros, compared with a current threshold of 5 billion euros, or if the return on sales remains under 4 percent.