Strong 2019 Sees VW Boost Profits Thanks to SUVs

At a state of the union-style meeting Wednesday, Volkswagen reported that it’s on track to achieve goals it set for itself in 2016 and has gained 19% market share worldwide. In short, VW’s leaders think the state of the union is strong.

Despite a worldwide market that is shrinking, VW’s profits and growth have been strong, according to COO Ralf Brandstätter. Unsurprisingly, he attributes the success to the brand’s recent SUV offensive.

“Ongoing restructuring of core business, including the positive effects of the pact for the future, and the success of the worldwide SUV offensive have been key to this achievement. Improved earnings in the regions and successful WLTP management have been just as important.”

That offensive saw cars like the T-Roc and T-Roc Cabriolet hit the European market, while the new Tiguan and Atlas have taken over the lion’s share of sales in America. As we reported earlier this month, those American SUV sales have been dominated by conquests, meaning that they have brought new customers to the brand.

On top of the improving profits, VW has been cutting costs. Of the €3 billion it planned to save by the end of 2020, VW has already managed to achieve €2.6 billion in savings.

All of these savings aren’t just being made for their own sake. Volkswagen already has that money earmarked for the rollout of its brand new line of electric vehicles. With the ID.3 finally revealed this year, the first American EV is set to be unveiled early in 2020.