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VW Raises Guidance as Sales Surge
Volkswagen AG has raised its outlook for the next three years because of cost reductions, productivity improvements and strong demand for SUVs.
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Volkswagen AG has raised its outlook for the next three years because of cost reductions, productivity improvements and strong demand for SUVs.
The company tells analysts it now expects its revenue, which reached a record €217 billion ($255 billion) in 2016, will grow more than 25% by 2020. VW also predicts earnings before interest and taxes will climb during the same interval by at least 25% from last year’s €7.1 billion ($8.3 billion).
VW reports it has achieved €1.9 billion ($2.2 billion) in savings over the past 12 months in such areas as productivity, streamlined working procedures and a leaner organizational structure. The company expects such efforts to lead to a €3.7 billion ($4.3 billion) contribution to earnings by 2020.
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