Volkswagen AG concluded 2024 with decrease working effects however fairly larger gross sales earnings. The carmaker offered its plans to navigate the demanding situations coming from america and China, however they haven’t factored in price lists for 2025.
Tumbling working benefit, a decrease dividend and fairly larger gross sales earnings have been some of the bulletins from suffering German carmaker VW in its newest profits file for 2024.
Volkswagen’s working benefit used to be down by way of 15% in comparison to 2023 and got here in at €19.1bn.
The unfavourable outcome used to be partially because of fastened prices, which swelled to €2.6bn, a lot of which used to be spent on restructuring.
VW expects its working margin, which hit 5.9% in 2024, to be between 5.5% and six.5% this 12 months.
“In a difficult aggressive atmosphere, we accomplished a good total monetary efficiency in 2024,” Arno Antlitz, CFO & COO of Volkswagen Crew, stated in a observation.
The mum or dad corporate of main Ecu manufacturers, together with Porsche, Lamborghini,= and Skoda, bought 9 million automobiles international, 3.5% underneath the former 12 months. The corporate noticed expansion in South The usa however that might now not totally offset the decline in China. In the meantime, automobile gross sales in North The usa and Europe have been solid.
The gang’s gross sales earnings used to be €324.7bn, fairly up, by way of 1%, from the former 12 months, pushed by way of the monetary products and services trade. VW expects gross sales earnings to extend by way of 5% in 2025, sending the message to traders that the worst might be over.
The carmaker has been suffering to stay the trade successful because of prime power costs and different production prices, inexpensive Chinese language festival, emissions-related laws, and geopolitical tensions.
In December, VW introduced that it will minimize round 35,000 jobs in Germany till 2030, as a part of its restructuring plan.
In line with the profits file, the Board of Control and Supervisory Board are proposing a dividend of €6.30 according to extraordinary percentage and €6.36 according to most well-liked percentage to the Annual Common Assembly, a 30% minimize in comparison to 2023.
Traders reacted fairly definitely to Volkswagen AG’s 2024 effects, with the percentage worth mountaineering by way of greater than 2% within the first hour after buying and selling opened in Frankfurt.
What’s VW bracing for in 2025?
In 2025, VW objectives to spice up productiveness and build up profitability, workforce CEO Oliver Blume stated, including that VW desires to be “the worldwide automobile era driving force by way of 2030”.
Alternatively, the carmaker recognizes that demanding situations are coming up from political uncertainty, expanding industry restrictions and geopolitical tensions.
Volkswagen AG could also be bracing for expanding depth of festival, risky commodity, power and foreign currency markets, and extra stringent emissions-related necessities.
“We stay combustion engines technologically aggressive, we’re concurrently making an investment in electrical fashions and device, and we proceed to fortify our regional presence – with a transparent expansion and funding technique in america,” Antlitz stated.
“The present outlook does now not come with conceivable results from the oblique advent or adjustment of industry price lists”, nor from “the conceivable rest of CO2 laws in Europe,” Antlitz additionally famous.