Posted on 01 Nov 2024
German carmaker Volkswagen Group has revised down its full-year forecasts amid difficult market conditions.
The firm published its quarterly report days after it said it would close at least three factories in Germany as part of a restructuring strategy to cut costs.
Full-year deliveries were downgraded to 9 million vehicles, 2% lower than in 2023, with VW admitting to “challenging market conditions” and “several” of its brands missing its original forecasts.
Sales revenue in 2024 will remain roughly unchanged at €320 billion ($346 billion), slightly above consensus estimates of €319 billion.
The company expects demand to be boosted by a “gradual” reduction in interest rates in Western markets, while it may be negatively impacted by protectionist measures, choppy financial markets and structural deficits in certain countries.
By the end of the year, the joint venture with US EV maker Rivian is projected to start operations, Kallanish learns.
In the quarter to 30 September, total sales rose by 4% to €78.4 billion, driven by a rise in the core brand and offset by lower sales in the Audi, Porsche and financial services segments.
Underlying earnings (EBIT) shed 3% to €2.8 billion due to a fall in profits across the board, except in the core brand.
Battery electric vehicle (BEV) deliveries dropped by 5% to 506,529 units, mostly due to “industry-wide buyer reluctance.” They accounted for 7.9% of all VW deliveries in the quarter.
Conversely, plug-in hybrid vehicle (PHEV) deliveries increased by 9% to 191,714 units, representing 10.7% of the total share. Overall, electrified vehicle deliveries were 1% lower compared to Q3 2023.
Source:Kallanish
