BERLIN: Volkswagen will report excellent group results this year, its CEO said, helped by expected record vehicle sales and by spending cuts.
The automaker’s popularity with motorists appears to have weathered the storm following the emissions scandal of September 2015, which has cost Volkswagen (VW) billions of euros in fines and penalties.
“It will certainly be quite outstanding in operational terms,” VW group CEO Matthias Mueller told Germany’s weekly Welt am Sonntag when asked to sum up the 2017 business year. VW is due to publish detailed 2017 results on March 13.
Last month, the CEO predicted that group deliveries would exceed the 2016 record of 10.3 million vehicles.
Cost cuts at the core passenger-cars division have caused the world’s largest automaker to raise its profit target for the year, and it has since also upgraded its mid-term profit and sales guidance.
On the other hand, Mueller said proposals by the European Commission for progressive cuts in carmakers’ average carbon dioxide (CO2) emissions by 2025 and 2030 will “cause us real pain.”
Wolfsburg-based VW more than two years ago admitted to cheating in diesel emissions tests in the US.
Mueller also criticized the prolonged political deadlock in Germany, which has no new government as Chancellor Angela Merkel continues to search for a coalition partner three months after federal elections.
“This is taking too long,” the CEO said in the interview published on Sunday. “We must become capable of acting again. For this purpose sometimes also unpopular decisions are necessary.”
— Reuters
VW may post excellent 2017 results, CEO tells Welt am Sonntag
VW may post excellent 2017 results, CEO tells Welt am Sonntag
Silver crosses $77 mark while gold, platinum stretch record highs
- Spot silver touched an all-time high of $77.40 earlier today, marking a 167% year-to-date surge driven by supply deficits
- Spot platinum rose 9.8% to $2,437.72 per ounce, while palladium surged 14 percent to $1,927.81, its highest level in over 3 years
Silver breached the $77 mark for the first time on Friday, while gold and platinum hit record highs, buoyed by expectations of US Federal Reserve rate cuts and geopolitical tensions that fueled safe-haven demand.
Spot silver jumped 7.5% to $77.30 per ounce, as of 1:53 p.m. ET (1853 GMT), after touching an all-time high of $77.40 earlier today, marking a 167% year-to-date surge driven by supply deficits, its designation as a US critical mineral, and strong investment inflows.
Spot gold was up 1.2% at $4,531.41 per ounce, after hitting a record $4,549.71 earlier. US gold futures for February delivery settled 1.1% higher at $4,552.70.
“Expectations for further Fed easing in 2026, a weak dollar and heightened geopolitical tensions are driving volatility in thin markets. While there is some risk of profit-taking before the year-end, the trend remains strong,” said Peter Grant, vice president and senior metals strategist at Zaner Metals.
Markets are anticipating two rate cuts in 2026, with the first likely around mid-year amid speculation that US President Donald Trump could name a dovish Fed chair, reinforcing expectations for a more accommodative monetary stance.
The US dollar index was on track for a weekly decline, enhancing the appeal of dollar-priced gold for overseas buyers.
On the geopolitical front, the US carried out airstrikes against Daesh militants in northwest Nigeria, Trump said on Thursday.
“$80 in silver is within reach by year-end. For gold, the next objective is $4,686.61, with $5,000 likely in the first half of next year,” Grant added.
Gold remains poised for its strongest annual gain since 1979, underpinned by Fed policy easing, central bank purchases, ETF inflows, and ongoing de-dollarization trends.
On the physical demand side, gold discounts in India widened to their highest in more than six months this week as a relentless price rally curbed retail buying, while discounts in China narrowed sharply from last week’s five-year highs.
Elsewhere, spot platinum rose 9.8% to $2,437.72 per ounce, having earlier hit a record high of $2,454.12 while palladium surged 14% to $1,927.81, its highest level in more than three years.
All precious metals logged weekly gains, with platinum recording its strongest weekly rise on record.
