Volkswagen updated its forecast for the 2024 financial year on Tuesday evening and issued a profit warning. The group now expects an operating return on sales of 6.5 percent to 7.0 percent, instead of the previously forecast 7.0 percent to 7.5 percent. The reason for this is also billions in charges at its premium subsidiary, among others Audi. In total, the DAX group would suffer burdens of 2.6 billion euros, including provisions for workforce reductions at the core brand VW Passenger Cars amounting to 0.9 billion euros.
Porsche adjusts earnings forecast
Also a subsidiary Porsche then adjusted the earnings forecast. The Stuttgart-based company holds an equity stake of around 31.9 percent in Volkswagen AG. Therefore, the consolidated result is heavily influenced by the result of the Volkswagen Group. For the 2024 financial year, Porsche now expects consolidated earnings after taxes of between 3.5 billion euros and 5.5 billion euros. The previous forecast was 3.8 billion euros to 5.8 billion euros.
However, according to the company, the adjustment has no impact on the company’s liquidity. Porsche therefore confirmed the existing forecast of net debt between 5 billion euros and 5.5 billion euros.
Audi puts the plant in Brussels to the test
At the same time, there are problems at the Volkswagen subsidiary Audi. The company announced on Tuesday that it may stop its luxury electric model Q8 e-tron early due to weak demand and put the factory in Brussels under review.
The Volkswagen Group announced on Tuesday that the supervisory board had decided on an “information and consultation process” at the Brussels site in light of the development in demand for the Q8 e-tron electric model in certain markets. Solutions for the location are now being developed together with the partners. “At the end of this process, operations may, among other things, be discontinued.” The step, together with other unplanned expenses, has a significant impact on the business of the entire group, it said.
The difficult situation at Audi in Brussels has long been an issue for employees beyond Audi. At the meeting of the VW global group works council in Wolfsburg in June, the works councils presented a declaration of solidarity to the group’s board of directors. “We as a committee of the European and global corporate works council will not agree to any measures that endanger the preservation of the location,” it said. “We call on the board of directors and Audi management to quickly find a sustainable solution to secure the future of the Brussels location.”
As manager magazin has received from works council circles, the employees have now once again declared war on VW.