Volkswagen AG Revises 2024 Financial Forecast Amid Market Challenges

Volkswagen AG has updated its 2024 financial forecast, citing a challenging market environment and underperformance in key segments such as Volkswagen Passenger Cars, Commercial Vehicles, and Tech Components. The company now anticipates delivering around 9 million vehicles, down from 9.24 million in 2023, against a prior forecast of up to a 3% increase.

Group sales revenue is projected to be approximately 320 billion euros, slightly below the 322.3 billion euros recorded in 2023 and previous expectations of up to a 5% increase. The operating result is now forecasted to be around 18 billion euros, yielding an operating return on sales of 5.6%, down from the previously anticipated 6.5-7.0%.

In the Financial Services Division, a difficult business climate outside Europe has led to a revised operating result forecast of 3.2 billion euros, lower than the previous estimate of 4 billion euros. Additionally, the company will endure a negative effect of around 0.2 billion euros from the deconsolidation of Volkswagen Bank Rus.

The Automotive Division's net cash flow is expected to be around 2 billion euros, influenced by expenses of approximately 3.5 billion euros related to M&A activities, including a joint venture with Rivian. Net liquidity is forecasted to be between 36 to 37 billion euros in 2024, down from the earlier range of 37 to 39 billion euros.