Volkswagen said Wednesday it expects the lowest end of the forecast to earn annual operating profits, the latest automaker, which weakens the perception of an industry that has been under pressure from competition for fees and competition with tariff uncertainty. The automaker’s revenue fell 40% in the first quarter, now has an annual operating profit of nearly 5.5%, and its net cash flow is also close to 34 billion euros ($34.7 billion) at its 2 billion to 5 billion euro forecast.
Volkswagen said that in the first quarter, battery-electric vehicle sales more than doubled in Europe, which also made profit margins weight, suggesting the difficulties traditional automakers face in the production of battery-electric vehicles that are enjoying on burning engine cars.
“We need to ensure a competitive cost structure and the vehicles our strong vehicles offer to succeed in a rapidly changing world,” Chief Financial Officer Arno Antlitz said in a statement.
Volkswagen said that in the first quarter, battery-electric vehicle sales more than doubled in Europe, which also made profit margins weight, suggesting the difficulties traditional automakers face in the production of battery-electric vehicles that are enjoying on burning engine cars.
“We need to ensure a competitive cost structure and the vehicles our strong vehicles offer to succeed in a rapidly changing world,” Chief Financial Officer Arno Antlitz said in a statement.
The forecast was frustrating after Porsche cuts outlook on Tuesday after falling profit margins in the first quarter.
Mercedes-Benz got full guidance on the year on Wednesday, noting that current tariff policies are too volatile to make reliable predictions about the fact that the ongoing trade war negatively impacts profit margins.
