Volkswagen's profits fall 20% in the first quarter due to lower sales

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 that car sales fell by 2% in the first quarter, reaching a total of 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.

The carmaker's luxury brand Porsche saw operating profits fall to 1.2 billion euros, down from 1.7 billion euros in the first quarter of 2023. The unit sold 71,000 vehicles globally in the first quarter, down 16% compared to 85,000 vehicles sold in the same year. Quarter. period of last year.

Volkswagen said the lower volumes were related to product development as well as customs-related delays.

Volkswagen still expects to meet its financial goals for 2024, including a 5% increase in sales revenue, 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.

Volkswagen shares traded in Europe fell 2.6% at 9:00 am London time.