Mexican Media Brands
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.
#economics
Share
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.
RELATED CONTENT
-
On Quantum Navigation, EVs, Auto Industry Sales and more
Sandia’s quantum navi, three things about EVs, transporting iron ore in an EV during the winter, going underwater in an EV (OK, it is a sub), state of the UK auto industry (sad), why the Big Three likes Big Vehicles, and the future of logistics.
-
GM, Ford Evaluate Possible Economic Slump
General Motors and Ford say they have bolstered their cash reserves in case the trade war between the U.S. and China triggers a global recession.
-
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.