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VW has 'good chances' to build on strong 2016 performance: CEO

Matthias Mueller, chief executive officer of Volkswagen AG, speaks during a news conference at the VW headquarters in Wolfsburg, Germany, April 22, 2016.
Krisztian Bocsi | Bloomberg | Getty Images
Matthias Mueller, chief executive officer of Volkswagen AG, speaks during a news conference at the VW headquarters in Wolfsburg, Germany, April 22, 2016.

Volkswagen has "good chances" of building on its strong 2016 performance, when it swung to a record underlying profit despite its diesel emissions crisis, Chief Executive Matthias Mueller said.

"The Volkswagen Group is in very robust shape," Mueller said on Tuesday at the carmaker's annual news conference in Wolfsburg.

VW expects group revenue to exceed last year's record 217 billion euros ($231 billion) by as much as 4 percent this year and is forecasting an underlying operating margin of between 6 and 7 percent, compared with 6.7 percent in 2016, it said, affirming a forecast given on Feb. 24.

Still, operating profit of its core autos division slipped further to 1.87 billion euros in 2016 from 2.10 billion a year earlier as the brand is struggling to implement a wide-ranging turnaround plan.