Volkswagen announced a profit decline in 2024, but hopes for profitability growth in the current period. According to the company's report, Volkswagen earned 12.4 billion euros, which is almost 31% less than in 2023. Reports UNN citing Euronews.
VW reports a profit decline
The German automaker Volkswagen reports a sharp decline in profit for 2024. In its day-to-day operations, operating profit fell by a full 15 percent to 19.1 billion euros. Dividends will be reduced by 30% to 6.36 euros per preferred share listed on the DAX. This is a more significant cut than expected.
The group's net profit fell by 30.6 percent to 12.4 billion euros. The significantly lower profits at the company are attributed to fierce competition in China. High reorganization costs also had an impact.
Trump promised to buy a new Tesla car in support of Musk11.03.25, 11:25 • [views_14384]
At Volkswagen, it is noted that sales amount to 9 million cars worldwide, which is 3.5% less than the previous year. Considering the drop in sales in China, Volkswagen also noted an increase in sales of its products in South America.
Volkswagen aims for sales growth but warns of cuts
Currently, Volkswagen plans that the operating profitability, which was 5.9% in 2024, will be within the range of 5.5-6.5% this year.
The German car manufacturer plans to significantly reduce its costs in the coming years. According to CFO Arno Antlitz, from 2025 to 2029, a total of about 165 billion euros will be invested in new facilities, technologies, and software.
The company, based in Wolfsburg, has budgeted about 180 billion euros for the previous five-year period from 2024 to 2028.
Volkswagen recalls more than 60,000 vehicles in the US due to a fault01.03.25, 15:39 • [views_36149]