Volkswagen forecast on Friday that gross sales development would sluggish in 2024, becoming a member of opponents in warning of a weaker financial outlook, rising competitors and better prices.
Europe’s prime carmaker, whose manufacturers embody Audi, VW and Lamborghini, expects gross sales to develop by as much as 5% in 2024, after a 15.5% enhance final yr to 322.3 billion euros (USD 349 billion).
That development suggests 2024 gross sales of as much as 338 billion euros, larger than the 316 billion analyst estimate compiled by LSEG.
Volkswagen’s Chief Monetary Officer Arno Antlitz sees a “muted financial outlook and intense competitors” in 2024, though the carmaker stays assured for the yr as a complete, pointing to new product launches.
The feedback chime with rivals, together with Mercedes-Benz and Stellantis, which each struck an analogous tone in outcomes final month.
European carmakers have come underneath stress from U.S. rival Tesla in addition to Chinese language opponents at a time when international momentum for electrical autos is fading within the face of waning gross sales development and declining authorities backing.
Volkswagen’s shares turned unfavourable and fell as a lot as 7.1% to their lowest degree in additional than 4 weeks after its annual outcomes, which included a drop within the working margin to 7.0% in 2023 from 7.9% the earlier yr.
They had been down 4.6% at 1606 GMT, whereas shares in Porsche , which is majority-owned by Volkswagen, additionally reversed features and had been flat.
Volkswagen stated it expects an working margin of seven.0% to 7.5% in 2024 and proposed to extend the dividend for each its widespread and most popular shares by 0.30 euros to 9.00 euros and 9.06 euros apiece, respectively.
The automaker stated its funding ratio is forecast to peak in 2024 at 13.5%-14.5%, pushed by spending in its key market China, and would progressively fall in subsequent years to round 11% by 2027.
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