Volkswagen cuts 2024 outlook as car demand falters
Volkswagen now expects profit margin of around 5.6%
Outlook cut comes amid tough pay talks with unions
BMW, Mercedes-Benz also slashed outlooks in September
Adds details, context from paragraph 7
By Christoph Steitz and Christina Amann
FRANKFURT/BERLIN, Sept 27 (Reuters) -Volkswagen VOWG_p.DE cut its annual outlook for the second time in less than three months on Friday, citinga weaker-than-expected performance at its passenger car division as pressure on Europe's top automaker continues to rise.
The lowered outlookis the latest from Germany's car giants, with Mercedes-Benz MBGn.DE and BMW BMWG.DE both downgrading their annual forecasts earlier this month as a result of weakening demand in China, the world's biggest car market.
It also comes two days after Volkswagen kicked off crucial talks with IG Metall, Germany's most powerful union, over pay and job protection, a historic conflict that could lead to the first German factory closures in the carmaker's history.
Volkswagen now expects a profit margin of around 5.6% in 2024, down from 6.5-7% previously and below the 6.5% LSEG estimate, while sales are expected to fall by 0.7% to 320 billion euros ($356.7 billion) after the company had initially expected an increase of up to 5%.
Volkswagen said it was cutting its outlook "in light of a challenging market environment and developments that have fallen short of original expectations, particularly at the brands Volkswagen Passenger Cars, Volkswagen Commercial Vehicles and Tech. Components".
The German carmaker, which owns majority stakes in Porsche AG P911_p.DE and truck giant Traton 8TRA.DE, also cut its outlook for global deliveries to around 9 million, down from a prior forecast ofa rise of up to 3% from 9.24 million vehicles in 2023.
Porsche SE PSHG_p.DE, the holding company of the Porsche and Piech families that holds most of the voting rights in Volkswagen and is the carmaker's single biggest shareholder, also cut its own outlook in the wake of Volkswagen's downgrade.
FALLING DEMAND
Frankfurt-listed shares in Volkswagen VOWG_p.F and Porsche SE PSHG_p.F were trading 0.7% and 1.6% lower, respectively.
A softening global economy has hit Germany's export-oriented economy at a time when a painful shortage of skilled labour and high energy prices and cheaper Asian rivals have already cranked up the pressure on local industrial heavyweights, including Thyssenkrupp TKAG.DE and BASF BASFn.DE.
The problems have also challenged Germany's tested model for consensual relations with powerful unions , seen as a strength in times of growing demand but turning into a liability of sorts when cost increases outpace salary expectations.
The fate of the auto industry and pressure from China are global issues, hitting Europe's car elite that has struggled with keeping plants running at full capacity.
In the U.S. presidential election, Republican nominee Donald Trump has suggested that China could dominate future auto production, while the Democratic Biden administration has accused China of flooding global markets with auto exports because of overcapacity and is proposing rules that would effectively bar nearly all Chinese cars from entering the U.S. market.
Volkswagen, which is scheduled to report third-quarter results on Oct. 30, said it now expects net cash flow of its automotive division of around 2 billion euros, down from 2.5 billion to 4.5 billion previously.
($1 = 0.8971 euros)
Reporting by Christoph Steitz and Christina Amann; Additional reporting by Peter Henderson; Editing by Thomas Escritt, Kirsten Donovan and Leslie Adler
Activos relacionados
Últimas noticias
Descargo de responsabilidades: Cada una de las entidades de XM Group proporciona un servicio de solo ejecución y acceso a nuestra plataforma de trading online, permitiendo a una persona ver o usar el contenido disponible en o a través del sitio web, sin intención de cambiarlo ni ampliarlo. Dicho acceso y uso están sujetos en todo momento a: (i) Términos y Condiciones; (ii) Advertencias de riesgo; y (iii) Descargo completo de responsabilidades. Por lo tanto, dicho contenido se proporciona exclusivamente como información general. En particular, por favor tenga en cuenta que, los contenidos de nuestra plataforma de trading online no son ni solicitud ni una oferta para entrar a realizar transacciones en los mercados financieros. Operar en cualquier mercado financiero implica un nivel de riesgo significativo para su capital.
Todo el material publicado en nuestra plataforma de trading online tiene únicamente fines educativos/informativos y no contiene –y no debe considerarse que contenga– asesoramiento ni recomendaciones financieras, tributarias o de inversión, ni un registro de nuestros precios de trading, ni una oferta ni solicitud de transacción con instrumentos financieros ni promociones financieras no solicitadas.
Cualquier contenido de terceros, así como el contenido preparado por XM, como por ejemplo opiniones, noticias, investigaciones, análisis, precios, otras informaciones o enlaces a sitios de terceros que figuran en este sitio web se proporcionan “tal cual”, como comentarios generales del mercado y no constituyen un asesoramiento en materia de inversión. En la medida en que cualquier contenido se interprete como investigación de inversión, usted debe tener en cuenta y aceptar que dicho contenido no fue concebido ni elaborado de acuerdo con los requisitos legales diseñados para promover la independencia en materia de investigación de inversiones y, por tanto, se considera como una comunicación comercial en virtud de las leyes y regulaciones pertinentes. Por favor, asegúrese de haber leído y comprendido nuestro Aviso sobre investigación de inversión no independiente y advertencia de riesgo en relación con la información anterior, al que se puede acceder aquí.
