Volkswagen Adjusts Annual Forecast Amid Brussels Restructuring

Volkswagen AG has announced significant updates following a strategic decision by the Supervisory Board of AUDI AG. The board resolved to support an information and consultation process at the Brussels site, exploring solutions for restructuring, which could potentially lead to the closure of the plant. This process, along with other unplanned expenses within the Volkswagen Group, has prompted an adjustment to the company’s 2024 forecast.

The additional expenses are a result of several factors, including anticipated costs from alternative uses or closure of the Brussels site, exchange rate losses due to deconsolidation of Volkswagen Bank Rus, and costs related to the closure of MAN Energy Solutions' gas turbine business. Additionally, Volkswagen had previously recognized €0.9 billion in provisions for termination agreements.

These unplanned expenses will impact the operating result by approximately €2.6 billion. Consequently, Volkswagen has revised its operating return on sales forecast to a range of 6.5% to 7.0%, down from the previous 7.0% to 7.5% estimate.

The company will release its half-year financial report on August 1, providing further financial details. The restructuring and associated costs underline Volkswagen's ongoing adjustments in response to market demands and internal strategic shifts.