Volkswagen lowers 2024 forecast on ‘challenging market environment’

Volkswagen said, “In light of a challenging market environment and developments that have fallen short of original expectations, particularly at the brands Volkswagen Passenger Cars, Volkswagen Commercial Vehicles and Tech. Components, Volkswagen AG is updating its forecast for the 2024 financial year.” The company now expects deliveries to customers to be around 9M vehicles versus 9.24M vehicles in 2023 and previous forecast of an increase of up to 3%. Volkswagen now expects 2024 revenue to be around EUR 320B versus EUR 322.3B in 2023 and its previous forecast calling for an increase of up to 5%. In terms of operating result, the company now expects to achieve a figure of around EUR 18B, corresponding to an operating return on sales of around 5.6% versus previously seeing an operating return on sales of 6.5% to 7.0%. “The adjustment of the forecast is mainly due to developments at the brands Volkswagen Passenger Cars, Volkswagen Commercial Vehicles and Tech. Components, which have fallen short of original expectations. In addition, a deterioration in the macroeconomic environment is having a negative impact, which could result in further risks, particularly for the Brand Group Core. In the Financial Services Division, a difficult business environment outside of Europe has led to an adjustment of the forecast.”