(Berlin) Volkswagen, the leading German and European automobile manufacturer, lowered its turnover and profitability forecasts for 2024 on Friday due to the slowdown in sales, a new illustration of the crisis in the German automobile sector.
“In a difficult market environment,” the group now expects a decline in turnover compared to last year, whereas it had previously forecast an increase of up to 5%, according to a press release.
Volkswagen, which announced in September that it was preparing an unprecedented savings plan, is now counting on a sales volume of 9 million vehicles compared to 9.24 million last year. The group was aiming for an increase of up to 3%.
As a result, turnover should fall to 320 billion euros (CAN 483 billion) compared to 322 billion (CAN 486 billion) last year.
The operating margin measuring profitability is now expected at 5.6%, compared to 6.5 to 7% previously.
In recent weeks, Germany’s three main automakers have had to revise their annual forecasts, all facing a slowdown in sales in their key market, China, where economic difficulties are dampening demand and local electric vehicle manufacturers represent competition. increasing.
The high-end manufacturer Mercedes-Benz has lowered its profitability target for the second time this year while its rival BMW faces, in addition to the slowdown in the Chinese market, a massive recall of vehicles due to a defective braking system.
Volkswagen is the most in difficulty of the three national flagships with, according to its management, threats to the very future of the group if it fails to reduce its costs. This crisis could lead it to lay off employees and close factories in Germany, a first in the history of the manufacturer in more than 80 years.