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Volkswagen Warns Of Lower Sales And Profitability
Volkswagen warns investors that sales and profitability will be lower this year than the German car company had previously estimated. This is partly due to disappointing sales of parts and new cars of the eponymous brand. According to Volkswagen, this is due to deteriorating economic conditions. This is the second time this year that Volkswagen has warned of disappointing results.
The company, which also includes brands such as Audi, Seat and Skoda, now expects to sell around 9 million cars and to book 320 billion euros in turnover. That would be a decline compared to last year, while the company previously expected turnover to increase further. For every euro that comes in, Volkswagen now expects to book 5.6 cents in operating profit. Previously, the company still expected 6.5 to 7 cents per euro.
Volkswagen’s management recently said the situation at the company was “alarming”, partly due to lower-than-expected demand for electric cars in the European Union and economic malaise in China. The company also hinted at the first factory closures in Germany in the carmaker’s history.
Competitors Mercedes and BMW have also lowered their profit expectations for this year. On Monday, representatives of the German automotive sector met to discuss the problems at hand. German Economic Affairs Minister Robert Habeck said that no hasty decisions should be made to defuse the unrest in the automotive industry.
