Volkswagen has downgraded its 2024 financial outlook amid significant challenges, marking a difficult period for the automotive giant. Facing high production costs, slow progress in its transition to electric vehicles (EVs), and rising competition in key markets like China, VW has warned of potential factory closures in Germany, a move that could lead to major job cuts.
Key Updates:
- Revenue Forecasts: VW now expects 2024 revenues to be around €320 billion, down from earlier projections of a 5% increase over 2023’s €322.3 billion.
- Vehicle Deliveries: The company anticipates delivering around nine million vehicles, scaling back from a previous goal of up to 3% growth over 2023’s 9.24 million vehicles.
- Operating Return on Sales: VW reduced its projected operating return on sales to 5.6%, from a previously forecasted range of 6.5% to 7.0%.