A man polishes a Volkswagen ID GTI Concept on display at the International Motor Show (IAA) in Munich, southern Germany, on September 5, 2023.
Christoph Stach | AFP | Getty Images
German automaker Volkswagen said on Tuesday that its operating profit fell 20% in the first quarter as weak demand for its premium brands led to a decline in sales.
The company said operating profits reached 4.6 billion euros ($4.9 billion) in the first three months of 2024. In the same period in 2023, operating profits reached 5.7 billion euros.
Volkswagen cited lower sales and higher fixed costs as well as “unfavorable country, brand and mix” as main factors in the decline in profits.
The company said Tuesday that vehicle sales fell 2% in the first quarter, totaling 2.1 million units.
“As expected, our first-quarter results show a slow start to the year,” Volkswagen Group CFO and COO Arno Antlitz said in a statement. statement.
Volkswagen said it still expects to meet its financial targets for 2024, including sales revenue rising by 5% and a full-year operating margin of between 7% and 7.5%.
“We expect additional momentum throughout the year from the launch of more than 30 new models across all brands. At the same time, the effects of our efficiency programs will gradually become apparent as the year progresses,” Antlitz said.
This is a breaking news story and will be updated soon.
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