Volkswagen cuts 2024 outlook as macroeconomic weakness hits car sales Reuters
FRANKFURT (Reuters) – Volkswagen on Friday cut its annual outlook for the second time in less than three months, citing the unexpected performance of its passenger car segment and the economic downturn.
The downsizing is the latest for German heavyweights, which are facing growing pressure from declining demand in China. Mercedes-Benz ( OTC: ) and BMW ( ETR: ) also both lowered their full-year forecasts earlier this month.
Volkswagen (ETR:), Europe's largest car company, now expects a profit margin of around 5.6% in 2024, down from the previous 6.5-7% and below the LSEG estimate of 6.5%.
Sales are expected to fall 0.7% to 320 billion euros ($356.7 billion) while the company had previously expected an increase of up to 5%.
Volkswagen said it was lowering its outlook “due to the challenging market environment and the development that failed to meet expectations, particularly in the Volkswagen Passenger Cars, Volkswagen Commercial Vehicles and Tech. Components businesses”.
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