A man polishes a Volkswagen ID GTI concept car on display at the International Motor Show (IAA) in Munich, southern Germany, September 5, 2023.
Christof Stache | Afp | Getty Images
German carmaker Volkswagen said Tuesday its operating profit fell 20% in the first quarter as falling demand for its premium brands led to lower sales.
Operating profit amounted to 4.6 billion euros ($4.9 billion) in the first three months of 2024, the company said. Over the same period in 2023, operating profit amounted to 5.7 billion euros.
Volkswagen cited falling sales and rising fixed costs as well as “an unfavorable country, brand and model mix” as key factors in the profit decline.
Vehicle sales fell 2% in the first quarter, totaling 2.1 million units, the company announced Tuesday.
“As expected, our first quarter results show a slow start to the year,” Arno Antlitz, chief financial officer and chief operating officer of the Volkswagen Group, said in a statement.
Volkswagen said it still expected to meet its 2024 financial targets, including revenue up 5% and a full-year operating margin of between 7% and 7.5%. .
“We expect additional momentum during the year with the launch of more than 30 new models across all brands. At the same time, the effects of our efficiency programs will gradually be felt as the “The year is moving forward,” Antlitz said.
This is breaking news and will be updated shortly.
News Source : www.cnbc.com
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