Volkswagen slashes 2024 outlook as car demand weakens, cites market challenges, tough labour talks

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Volkswagen AG News

Car Sales,Outlook,Forecast

Volkswagen now expects profit margin of around 5.6 per cent Outlook cut comes amid tough pay talks with unions BMW, Mercedes-Benz also slashed outlooks in...

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The lowered outlook is the latest from Germany’s car giants, with Mercedes-Benz and BMW both downgrading their annual forecasts earlier this month as a result of weakening demand in China, the world’s biggest car market. Volkswagen said it was cutting its outlook “in light of a challenging market environment and developments that have fallen short of original expectations, particularly at the brands Volkswagen Passenger Cars, Volkswagen Commercial Vehicles and Tech. Components”.

A softening global economy has hit Germany’s export-oriented economy at a time when a painful shortage of skilled labour and high energy prices and cheaper Asian rivals have already cranked up the pressure on local industrial heavyweights, including Thyssenkrupp and BASF.

 

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