The Volkswagen Group Expects A Challenging Market In 2024 To Impact Car Sales

(CTN News) – As a result of a gloomy economic outlook and growing competition, Volkswagen expects its car sales this year to rise by 3%, down sharply from 2023.

During the presentation of the German automaker’s 2023 results, Arno Antlitz, the company’s finance chief, said that the “general economic situation remains challenging,” but added that “despite the muted economic outlook and intense competition of 2024, we are confident about the future.”

Volkswagen customers received 9.24 million cars in 2023, a 12% increase from the previous year.

A number of rival automakers have warned that the year ahead is likely to be challenging for the brand. Last month, Stellantis reported its results, predicting turbulent times in 2024.

Volkswagen plans to launch new models in Western Europe in the coming months, including fully electric models, so the company expects to see more vehicle orders in the coming months.

There has been a clear positive trend starting the new year, in comparison with the start of last year, for the company, which has recently launched the electric ID.7 and plans to launch a record 30 new models in 2024.

It should be noted that the new EV launches come at a time when electric cars demand has slowed down. Mercedes-Benz, its German rival, announced last month that it would delay its electrification plan by five years and continue to revamp its combustion-engine models until then.

EVs are the future of the automobile industry, period, according to Volkswagen CEO Oliver Blume, who added that the company is flexible enough to adapt to changes in different markets as they develop.

It was a flat market in Germany when shares of Volkswagen fell 0.65% to 120.16 euros at 1000 GMT at the start of the day.

Earlier this month, the automaker announced a muted outlook for 2024 as well as a higher dividend, joining rivals including Stellantis, Ford and General Motors in giving away cash to investors.

It has already been announced that Volkswagen plans to cut by a fifth the costs of administrative staff at its VW brand, adding that it will be able to achieve this through partial and early retirements rather than layoffs.

According to the company, the operating profit margin for its core mass-market brands rose to 5.3% last year from 3.6% in 2022, and it expects to reach 8% by 2024.

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