It seems that Volkswagen is recovering from the emission diesel scandal. For the first quarter automaker reported a 28 percent jump of operating profit. This development is supported by increase of growth at its core VW brand. Publishing main financial numbers, Volkswagen announced that up to the end of March, company made operating profit 1 billion Euros more than in the same period last year. In the first quarter of the 2016 operating profit was 3.4 billion, while in the same period this year figure is 4.4 billion euros.
Shares in Volkswagen jumped on the news, trading 3.7 percent higher at 136.00 euros at 1436 GMT, making them the third-biggest gainers on the STOXX Europe 600 index. Volkswagen said on Tuesday that first-quarter operating earnings at the VW brand came to around 900 million euros, up from 73 million in the year-earlier period.
Larry Thompson will be named as VW monitor
Larry Thompson, a lawyer at Finch McCranie who was deputy attorney general from 2001-03, is expected to be tapped to oversee the world’s largest automaker for three years. According to the plea agreement announced in January, VW must make reforms and faces a monitor’s oversight. It is set to be sentenced to three years’ probation on Friday by a federal judge in Detroit.
Both, Thompson and the Justice Department didn’t comment to the public this reports and it’s still not confirmed that this will happened, so we will need to wait for a while until it will be officially announced. Volkswagen also leave public without a comment on this subject.
Thompson and his team will have access to Volkswagen documents and assess the efforts of VW’s board of management and senior management to comply with environmental laws. The monitor will file at least two follow-up reports with the Justice Department and conduct interviews in Germany, the United States and potentially elsewhere with VW employees.
The company will also face separate annual environmental management systems audits over the next three years.