Volkswagen Group’s pre-tax profits were down €3.3 billion in the first nine months of 2024, driven by difficulties at its name-sake brand where “painful decisions” need to be made.
The Group has blamed a weaker industry environment – especially in China, an important market for the brand, where sales are down 10% – high fixed costs (such as amenities and wages) and costs around “significant” reorganisation (some €2.2 billion), which relates to the closure and potential sale of Audi’s plant in Brussels.
It is, therefore, this year expecting to drop some 240,000 sales and lose €2.3. billion revenue compared to 2023, it said today.
“Our nine-month results reflect a challenging market environment and underline the importance of delivering on the performance programs we have launched across the Group,” said COO Arno Antlitz.