Volkswagen Brand Postpones Profitability Target by Three Years

Volkswagen Brand Postpones Profitability Target by Three Years

Volkswagen AG’s namesake brand pushed back its profitability target by three years as the carmaker contends with muted sales and the costs of slimming down its bloated operations.

First the parent company Volkswagen reports a drastic break in profits, now the sports car subsidiary Porsche has to report significantly less profit. Behind the company lies anyway turbulent weeks.

In sales, VW 2024 has a slight profit. However, this does not result from car sales, which continue to run weak. High costs significantly reduce earnings after taxes. The dividend is to be cut sharply.

The Volkswagen, Škoda, Seat-Cupra, and Volkswagen Commercial Vehicles brands, which form the Core brand group within the VW Group, worked closely together during the past fiscal year. Jointly optimized processes have strengthened resilience. Despite necessary restructuring measures – especially at the Volkswagen brand – the brand group achieved a solid operating result of around €7 billion, a slight decrease of 4.3 percent compared to the previo…

German carmaker Volkswagen announced today that its core brand of the same name will reach its planned sales profitability target for next year with a three-year delay, German news agency dpa reported. They cited a significantly more challenging market environment as the reason.

Despite many challenges and headwinds, the brand board wants to stick to the high goals. However, it gives more time for this, also in terms of return on sales.