VW expects better 1st Q profit of $4.7 billion


              Herbert Diess, left, Member of the Board of Management of Volkswagen AG, Chairman of the Board of Management of the Volkswagen Passenger Cars brand and Hinrich Woebcken, right, CEO of the North America Region, Volkswagen and President and CEO of Volkswagen Group of America, Inc. pose after unveiling the Volkswagen Tiguan before the North American International Auto Show in Detroit, Sunday, Jan. 8, 2017. (AP Photo/Paul Sancya)
Herbert Diess, left, Member of the Board of Management of Volkswagen AG, Chairman of the Board of Management of the Volkswagen Passenger Cars brand and Hinrich Woebcken, right, CEO of the North America Region, Volkswagen and President and CEO of Volkswagen Group of America, Inc. pose after unveiling the Volkswagen Tiguan before the North American International Auto Show in Detroit, Sunday, Jan. 8, 2017. (AP Photo/Paul Sancya)

Volkswagen Group's preliminary operating profit for the first quarter is expected to be about $4.7 billion with a key improvement in its namesake brand, the company reported today.

The company, which is to report final results in May, said its operating results are "significantly higher than market expectations."

New model introductions, particularly the redesigned Tiguan, and a strong financial performance in Western Europe along with "optimized fixed costs" also positively affected the result, said the company that's launching its new Chattanooga-made Atlas SUV next month.

With regards to the group's operating profit outlook for 2017, the company continues to anticipate that its operating return on sales will be between 6 percent and 7 percent in 2017.

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