A Volkswagen emblem on the rim of an e-up. electrical automotive tire.
Julian Stratenschulte | Image Alliance | Getty Photographs
German automaker Volkswagen on Wednesday reported a 42% drop in working revenue within the third quarter.
Working revenue fell to 2.86 billion euros ($3.1 billion), whereas third quarter gross sales revenues slipped 0.5% yr on yr to round 78.5 billion euros.
Automobile gross sales fell 8.3% within the third quarter of 2024 in comparison with the identical time interval a yr earlier, Volkswagen mentioned.
Internet liquidity throughout the Volkswagen Group stood at damaging 160.6 billion euros on the finish of September 2024, it mentioned. The corporate’s web liquidity stood at damaging 147.4 billion euros on the finish of 2023.
Volkswagen on Wednesday mentioned that its outcomes throughout the primary three quarters of the yr have been impacted by greater fastened prices and restructuring efforts. Working revenue between January and September of this yr was 21% decrease on an annual foundation.
Volkswagen shares closed 1% greater.
Arno Antlitz, chief monetary officer and chief working officer at Volkswagen Group, mentioned the efficiency mirrored a “difficult market surroundings” and highlighted the significance of ongoing efficiency packages throughout the corporate.
The third quarter outcomes come after Volkswagen final month reduce its 2024 annual outlook for the second time in just some months. On the time, the automotive maker mentioned it was anticipating a revenue margin of round 5.6% for the yr, together with a 0.7% drop in gross sales to 320 billion euros. These figures have been left unchanged on Wednesday.
Volkswagen has been in scorching water in current months, warning of potential plant closures in Germany and scrapping a slew of labor agreements with native employees in September. The corporate additionally mentioned it could finish its employment safety settlement, which has been in place for its German workforce since 1994.
On Monday, the Volkswagen works council mentioned the corporate’s administration was planning widespread pay cuts and layoffs, in addition to the closure or measurement discount of all of its German vegetation.
In response, Volkswagen reiterated the necessity for restructuring and mentioned that it could current plans for work price cuts throughout a spherical of negotiations concerning the labor agreements, which can also be happening on Wednesday.
“Forward of the negotiations right this moment, we have to state: the scenario is getting extra severe,” Volkswagen’s chief negotiator Arne Meiswinkel mentioned on Wednesday based on a CNBC translation.
He added that present developments within the auto business in Europe and particularly in Germany have been regarding, as proven by the newest figures from each the corporate and its opponents.
Meiswinkel reiterated that Volkswagen wanted to decrease prices and improve its effectivity to be able that permits it to put money into its future.
