Report on the current situation of Volkswagen $VOW (+2,44%)
in the third quarter of 2024
The Volkswagen Group (VW) continues to face major challenges in a dynamic market environment. The business figures for the third quarter of 2024 show both light and shade, particularly with regard to profitability, production capacities and the implementation of restructuring measures.
Key financial figures
-Turnover: VW's revenue in the first nine months of 2024 amounted to 237.3 billion eurosslightly above the 235.1 billion euros from the same period of the previous year. This shows a certain stability, despite a challenging market
https://www.volkswagen-group.com/en/investors-15766
-Operating profit: In the third quarter, operating profit amounted to EUR 2.86 billion, which led to a decline in the operating margin to 3,6 % the lowest margin for more than four years. For the first nine months, the operating profit amounted to 12.9 billion euros21% less than in the same period of 2023 .
https://www.volkswagen-group.com/de/finanzberichte-18134
-Sales: A total of 6.5 million vehicles were sold up to September, a fall of 4% compared to the previous year. However, demand in Europe in particular showed signs of recovery in the third quarter.
https://www.volkswagen-group.com/en/volkswagen-group-interim-report-january-september-2024-18726
Challenges and strategic measures
1.Cost managementVW is struggling with high fixed costs, which are to be reduced through restructuring measures such as possible plant closures and wage savings in Germany. The aim is to improve the operating margin of the core VW brand, which currently stands at just 2%.https://finanzmarktwelt.de/vw-quartalszahlen-327989/
2.Market challenges: In particular, competition from Chinese electric car manufacturers and the weakening sales of premium brands such as Audi and $P911 (+0,27%) are weighing on performance. In addition, production is down by 6.8% .
3.ElectromobilityDespite difficulties in launching new electric vehicles, VW emphasizes its commitment to providing a strong portfolio of combustion, hybrid and electric cars. An increased order rate in Western Europe underlines the importance of the new models for future success .
Outlook
VW plans to optimize production in the coming quarters in order to benefit from improved demand and new model series. Restructuring and cost reductions should help to increase profitability, particularly of the core brand. The long-term strategy is based on a realignment towards sustainable mobility and efficiency gains throughout the Group
Volkswagen is thus in a decisive phase of its transformation in order to adapt to global market requirements and remain competitive. For more detailed insights, you can download the full interim report from VW .
