'Good Times' Return for Volkswagen Around 2020, Diess Predicts

After the awkward auto show apologies of the past year, Volkswagen executives are looking forward to a rosy time in the near future after the brand stabilizes itself.

Those “good times” will return, according to global brand chief Herbert Diess, but not before three to four years of rough slogging. In a Bloomberg TV interview from the Paris Auto Show, Diess mulled adding new models to its U.S. lineup.

The executive predicts that Volkswagen should be “finished the hard work” of restructuring its operations by 2020.

That task includes bringing employee compensation and pensions under control, settling all fines, lawsuits, recalls and buybacks spawned by the diesel emissions scandal, rolling out a crop of electric vehicles and boosting production of profitable models, especially in the U.S. The automaker might also position its foray into mobility services like ride-hailing and self-driving shuttles into a new brand.

Easy peasy.

Volkswagen introduced its I.D. concept at the Paris show, promising a long-range electric compact by 2020. The vehicle offers up to 373 miles of range and would slot alongside the gas-powered Golf in the brand’s lineup.

Though the brand touts electrics as the future of driving, the transition away from fossil fuels puts the company in a fair bit of financial peril. According to Bloomberg, the company’s operating margin sits at a very low 1.7 percent. The switch-over to EVs would eat up cash through costly retooling and training, potentially lowering profit margins.

Potentially offsetting that, the automaker is considering bringing new models to the U.S. to bolster its recovery plan. While the Teramont midsize SUV and lengthened Tiguan bow next year, it might not be enough. Automotive News reports that the company will decide whether to add new U.S. models (likely crossovers or SUVs) by early next year.

[Image: Volkswagen of America]