Sunday, November 10, 2024

Volkswagen Group profits down €3 billion; brand operating on 2% margin | Autocar

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Volkswagen Group’s pre-tax profits were down €3.3 billion in the first nine months of 2024, driven by difficulties at its name-sake brand where “painful decisions” need to be made.

The Group has blamed a weaker industry environment – especially in China, an important market for the brand, where sales are down 10% – high fixed costs (such as amenities and wages) and costs around “significant” reorganisation (some €2.2 billion), which relates to the closure and potential sale of Audi’s plant in Brussels.

It is, therefore, this year expecting to drop some 240,000 sales and lose €2.3. billion revenue compared to 2023, it said today.

“Our nine-month results reflect a challenging market environment and underline the importance of delivering on the performance programs we have launched across the Group,” said COO Arno Antlitz.

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