Volkswagen Q3 2024 outcomes

German automaker Volkswagen on Wednesday reported a 42% drop in working revenue within the third quarter.

Working revenue fell to 2.86 billion euros ($3.1 billion), whereas third quarter gross sales revenues slipped 0.5% yr on yr to round 78.5 billion euros.

Car gross sales fell 8.3% within the third quarter of 2024 in comparison with the identical time interval a yr earlier, Volkswagen stated.

Web liquidity throughout the Volkswagen Group stood at damaging 160.6 billion euros on the finish of September 2024, it stated. The corporate’s internet liquidity stood at damaging 147.4 billion euros on the finish of 2023.

Volkswagen on Wednesday stated that its outcomes throughout the primary three quarters of the yr had been impacted by increased fastened prices and restructuring efforts. Working revenue between January and September of this yr was 21% decrease on an annual foundation.

Volkswagen shares had been had been final 1.8% increased at 8:19 a.m. London time.

Arno Antlitz, chief monetary officer and chief working officer at Volkswagen Group, stated the efficiency mirrored a “difficult market surroundings” and highlighted the significance of ongoing efficiency applications throughout the corporate.

The third quarter outcomes come after Volkswagen final month minimize its 2024 annual outlook for the second time in only a few months. On the time, the automobile maker stated it was anticipating a revenue margin of round 5.6% for the yr, together with a 0.7% drop in gross sales to 320 billion euros. These figures had been left unchanged on Wednesday.

Volkswagen has been in sizzling water in current months, warning of potential plant closures in Germany and scrapping a slew of labor agreements with native staff in September. The corporate additionally stated it will finish its employment safety settlement, which has been in place for its German workforce since 1994.

On Monday, the Volkswagen works council stated the corporate’s administration was planning widespread pay cuts and layoffs, in addition to the closure or measurement discount of all of its German vegetation.

In response, Volkswagen reiterated the necessity for restructuring and stated that it will current plans for work price cuts throughout a spherical of negotiations concerning the labor agreements, which can also be going down on Wednesday.

“Forward of the negotiations as we speak, we have to state: the scenario is getting extra severe,” Volkswagen’s chief negotiator Arne Meiswinkel stated on Wednesday in line with a CNBC translation.

He added that present developments within the auto business in Europe and particularly in Germany had been regarding, as proven by the most recent figures from each the corporate and its rivals.

Meiswinkel reiterated that Volkswagen wanted to decrease prices and improve its effectivity to be able that enables it to put money into its future.