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Volkswagen AG (OTCPK:VWAGY) (OTCPK:VLKAF) said it expects sales growth to slow in 2024 compared to last year.
Revenue is forecast to rise by 5%, supported by positive effects such as the market launch of new products. Operating return on sales expected to range between 7.0% and 7.5% and automotive net cash flow is seen falling in a range of between €4.5B and $6.5B. Net liquidity in the Automotive Division is expected to be between €39B and €41B in 2024. The German automaker pointed to increasing competition, stricter emissions regulation, and high raw materials prices as potential drags on results. Looking to China, Volkswagen (OTCPK:VWAGY) said the investment ratio will peak in 2024 at an expected 13.5% to 14.5%. In the following years, the automaker anticipates the investment ratio to gradually approach the target level of 11% by 2027.
Volkswagen CFO Arno Antlitz: “We are confident about 2024, despite the muted economic outlook and intense competition. On that basis, we will consistently drive the transformation of the Volkswagen Group forward. We expect a tailwind from a large number of new product launches, a positive trend in product costs and continued cost discipline. Our flexibility is our strength: we are continuing to invest in the electrification and digitalization of our product range, while simultaneously keeping our combustion vehicles competitive during the transition phase.”
Shares of Volkswagen (OTCPK:VWAGY) fell 4.2% in Frankfurt trading on Friday afternoon.
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