Mexican Media Brands
VW Posts 3Q Growth but Cuts Sales Outlook
Volkswagen AG’s unit sales, revenue and operating profit all rose in the third quarter. But the company trimmed its sales outlook because the global market is cooling faster than expected.
#economics
Share
Volkswagen AG’s unit sales, revenue and operating profit all rose in the third quarter. But the company trimmed its sales outlook because the global market is cooling faster than expected.
Group deliveries in July-September rose 1% to 2.64 million vehicles, and revenue surged 11% to €61.4 billion ($68.2 billion). Operating profits jumped by two-thirds to €4.5 billion ($5 billion).
But the company predicts “moderate” shrinkage in the global passenger car market for the full year, accompanied by a “noticeable dip” in demand for light commercial vehicles.
VW expects sales revenue from its car and light commercial vehicle operations will grow 5% this year. The carmaker previously anticipated a slight increase in unit sales, but now it says volume will be flat.
The company anticipates an operating return on sales of 6.5%-7.5% this year compared with 7.3% in 2018.
RELATED CONTENT
-
China and U.S. OEMs
When Ford announced its 3rd quarter earning on October 24, the official announcement said, in part, “Company revenue was up 3 percent year over year, with net income and company adjusted EBIT both down year over year, primarily driven by continued challenges in China.” The previous day, perhaps as a preemptive move to answer the question “If things are going poorly in China, what are you doing about it?, Ford announced that it was establishing Ford China as a stand-alone business unit.
-
VW Warns of Higher Costs to Develop EVs
CEO Herbert Diess says the €20 billion ($23 billion) Volkswagen AG has budgeted to electrify its entire vehicle lineup won’t be enough to meet that goal.
-
Tariffs on Autos: “No One Wins”
While talk of tariffs may make the president sound tough and which gives the talking heads on cable something to talk about, the impact of the potential 25 percent tariffs on vehicles imported to the U.S. could have some fairly significant consequences.