Volkswagen issues “second profit warning” in three months - Gazeta Express
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AutoTech

Express newspaper

28/09/2024 21:55

Volkswagen issues "second profit warning" in three months

AutoTech

Express newspaper

28/09/2024 21:55

Volkswagen has cut its annual forecast for the second time in three months after Europe's biggest carmaker blamed "a challenging market environment" for weaker sales.

The German group said on Friday it expected an operating profit margin of around 5.6 percent in 2024, instead of a range of 6.5 percent to 7 percent it had forecast.

The cut came after VW lowered its target in July, citing costs for closing an Audi plant in Belgium.

VW has said it is considering closing factories in Germany for the first time in its 87-year history as the carmaker faces a slump in demand for vehicles in Europe and the rise of cheaper Chinese brands.

"A deterioration in the macroeconomic environment has a negative impact, which could result in further risks," VW said.

On Wednesday, VW began wage negotiations with the IG Metall union, which is demanding a 7 percent pay rise for employees.

The union and the group's works council have warned that strikes will be possible in German factories from December.