Volkswagen Anticipates Profitability Near Lower End of Projections

STUTTGART: Volkswagen announced Wednesday that it anticipates its operative profit, net cash flow, and net liquidity will likely fall towards the lower end of its previously issued annual forecasts. The company cited increasing trade barriers, heightened competition, and evolving emissions regulations as contributing factors to this revised outlook.

The automaker indicated that sales of battery-electric vehicles, which experienced substantial growth in Europe during the first quarter, have also exerted pressure on its profit margins. This highlights the challenges established car manufacturers face in replicating the profitability of traditional combustion engine vehicles with their electric counterparts.

New Venture in China

Volkswagen and FAW are embarking on a joint venture to introduce 11 new vehicle models specifically designed for the Chinese market, with launches commencing in 2026.

Statement from CFO

“To maintain our success in a rapidly evolving global landscape, we must guarantee a competitive cost structure in conjunction with our robust vehicle offerings,” stated Chief Financial Officer Arno Antlitz.