The latest financial results published by Volkswagen show that the company’s profit has plummeted by more than 40%. Volkswagen blames the decline on low demand for electric models.
The Volkswagen Group has revealed its third quarter earnings, and the results don’t look very good for the German company. Compared to the same period last year, sales fell by 8.3%, while profits fell by 41.7%, it reports Carscoops.
The company made a profit of just 2.86 billion euros in the third quarter of this year, down from 4.89 billion recorded in the same period last year. Given this drastic decline, it’s no surprise that the automaker is considering closing factories, cutting costs and massive layoffs.
The first nine months of 2024 do not look better for Volkswagen either
In the first nine months of the year, Volkswagen Group sales fell by 4.4% to 6,762,000 units. This, in turn, contributed to a 20.5% drop in operating profit to 12.91 billion euros, even as the company’s revenue rose slightly.
Volkswagen blames this poor performance on several issues, including higher fixed costs and restructuring expenses. The company also cited a lack of supply chain, a challenging macroeconomic environment and a “comprehensive renewal” of its luxury sports product portfolio.
Volkswagen also cited weak demand for electric cars across the industry, which saw deliveries of electric models fall 4.7 percent compared to last year.
There are also positive sides in the current situation of the German concern. The Audi range has been extensively updated with facelifts and new models, while Volkswagen has brought new generations and updates to its key products such as the Golf or Tiguan. However, despite these positive developments, the Volkswagen Group risks closing three factories in Germany, and the Audi plant in Brussels will be closed early next year.
Source: www.promotor.ro
