Nick Florous, Ph.D.’s Post

Volkswagen profit plunges 42% in third quarter amid sweeping overhaul plans 📈 Operating profit fell to 2.86 billion euros ($3.1 billion), while third quarter sales revenues slipped 0.5% year on year to around 78.5 billion euros. The third quarter results come after Volkswagen last month cut its 2024 annual outlook for the second time in just a few months. Volkswagen has been in hot water in recent months, warning of potential plant closures in Germany and scrapping a slew of labor agreements with local workers in September. * Disrupted by Technology, VW doesn't have a viable Hybrid Powertrain Technology and lacks marketing their All-Battery Electric car Strategy, due to Global EV sales not catching up. A mistake going all out with EV but cannot sell? Most importantly, VW doesn't have AI in Manufacturing, because Germans were the inventors of Industry 4.0 not yet understanding and seeing what's next as Industry 5.0 - There is a difference between Automation and Autonomous 💡

Volkswagen his third-quarter financial results for 2024 reveal significant challenges, underscored by a sharp drop in units sold, operating profit and net income. The German automaker reported a decline in global vehicle deliveries, with units sold down by approximately 8% year-over-year. This decrease has been attributed to a range of factors, including slowing demand in core markets such as Europe and China, and ongoing competition in the electric vehicle (EV) segment. The decline in units sold has directly impacted Volkswagen’s profitability. Operating profit fell by 42% compared to Q3-2023, where net income fell by around 64% compared to the same period last year, coming in at approximately €1.6 billion. Volkswagen has been investing heavily in its transition to EVs, aiming to position itself as a leader in sustainable mobility. However, the shift has been costly, and the competitive pressures in the EV space continue to intensify with new and established players alike. As part of its long-term strategy, Volkswagen is working to improve efficiencies, enhance its digital and software capabilities, and expand its EV offerings in hopes of stabilizing growth. In response to the tough quarter, Volkswagen reiterated its commitment to investing in innovation, digital services, and market expansion. However, the Q3-2024 results underscore the balancing act the company faces: managing short-term profitability challenges while executing a significant transformation to secure its future in an evolving automotive industry. Volkswagen is considering major changes in its production capacity worldwide. #Volkswagen #stocks #investing #stockmarket

Volkswagen’s recent announcement of potential closures and job losses reveals the complex realities of the EV transition. This development is a significant reminder of the economic and operational challenges that can arise as the industry shifts gears (pun intended). Keep an eye on this one. #Manufacturing #AutomotiveIndustry #Innovation #Sustainability

Volkswagen Group’s nine-month results impacted by higher fixed costs and restructuring provisions/ The Volkswagen Group expects deliveries to customers to be around 9 million vehicles

Volkswagen, burdened by 230 billion euros in debt and a 20% decline in profit by 2024, is facing a crisis that looms over its dominance. The German automaker, struggling since the 2015 emissions scandal and €31 billion in fines, is hit by Germany’s sluggish economy, high energy costs, and an EU ban on petrol cars by 2035. Transitioning to EVs, VW faces dwindling subsidies, stiff competition, and declining exports, especially in China and the U.S. Amid falling sales, VW plans drastic cost-cutting, potentially closing factories and risking thousands of jobs. This turmoil jeopardizes not only VW’s future but also Germany’s critical automotive industry.

Volkswagen is facing a critical period as it transitions to electric vehicles, with finance chief Arno Antlitz indicating the company has just a few years to reverse its current trajectory, according to Reuters. The automotive giant is experiencing declining sales in Europe and China, influenced by the rise of local competitors such as BYD. Despite these challenges, Volkswagen is poised for a significant development with the upcoming launch of the ID Buzz, an electric Kombi van, in Australia. How do you see Volkswagen’s transition impacting its market position? Read more at Drive: https://loom.ly/x8Y-PUQ

Volkswagen Group Achieves Robust Annual Results for 2023, with a Strong Fourth Quarter Volkswagen Group achieved robust financial results in 2023. This was driven by a strong fourth quarter, with sales revenue of EUR 87 billion and an increase in operating profit of more than a quarter compared to the previous year. During the year, the Group made further progress with the implementation of its strategy and systematically pushed ahead with its restructuring. The focus was on customer-oriented products and compelling design, in addition to the strengthening of the regions, particularly China and North America. By introducing performance programs in all divisions, the Group has made notable strides towards a sustainable increase in […] - https://lnkd.in/d6eymv8f #automotive #evs #ev #electricmobility #emobility #ebikes #fleets #evfleet #evnews #autonews #electricvehicles #electricvehicle #automotiveindustry #automotivejobs #cleantech #cleanenergy #hydrogen #lithium #evbattery #sustainability #climatechange #automotiveindustry #bev #electricvehicles #financialresults #globalnews #marketoutlook #quarterlyresults #revenue #sales #volkswagengroup

Volkswagen will struggle to reverse out of this dead end 📈 Investors are understandably concerned despite the carmaker’s mooted job cuts and plant closures. Competition from Chinese carmakers both in China and abroad largely explain VW’s profit warnings and decline in earnings. Can Volkswagen cost-cut its way out of a crisis? The automaker plans to shut several German plants and axe tens of thousands of jobs. At this point, though, the question is no longer whether VW needs to restructure but whether the axe will be sharp enough to excise its troubles. The German group is facing a car crash of problems, as a series of profit warnings and, more recently, a 64 per cent decline in third-quarter earnings exemplifies. China is a key issue as domestic carmakers churn out cheaper and better vehicles. VW’s deliveries in the region fell by 10 per cent in the first nine months of the year. The contribution from its joint ventures in China this year will be some €1.6bn of “proportionate operating income”, thinks VW, around half the amount in 2022. Competition from Chinese carmakers — whether in China or abroad — is structural and will not be easily reversed. EU tariffs on Chinese EVs will slow, rather than halt, penetration. That, plus an arguably cyclical slowdown in European vehicle sales — which this year are expected to be 14mn across the market compared to 16mn pre-pandemic — is forcing VW to grapple with its unsustainably high cost base. Much of the problem lies with the group’s core VW brand. This struggles to make much of a margin even in the good times. In the third quarter, it fell to 1.8 per cent of sales. That’s well below the group’s full-year target of 5.6 per cent. Rival Renault is looking at full-year ebit margins of near 8 per cent, according to S&P Capital IQ. Volkswagen wants to raise the VW brand margin to 6.5 per cent by 2026. It last year outlined €10bn of performance improvements. The recently reported plant closures and employment reductions might add another €4bn, thinks Daniel Schwarz at Stifel. Combined, such measures account for roughly 15 per cent of VW brand sales — a lot more than it needs to meet its margin target. Investors may hope that this overshoot speaks to VW’s huge potential to cut costs and cushion the worst of the slowdown in vehicle sales. The fear, however, is that it instead reflects a deteriorating environment in which Chinese carmakers continue to gain share domestically and abroad, electric vehicle sales prove dilutive to margins and pricing on internal combustion engines declines. That, coupled with the fact that mooted cuts and closures will face fierce opposition, explains why VW’s stock trades at 3.3 times next year’s earnings. Investors clearly do not believe that the carmaker is getting its show back on the road. * Disrupted by Technology, Electrification

🚗 Volkswagen Update! 🚗 Despite facing headwinds in the economic landscape, Volkswagen remains optimistic with a slew of new product launches and improved cost trends. Revenue growth may slow to 5%, but with a solid 7-7.5% operating margin, we're steering through the challenges. Exciting investments lie ahead, especially in China and our burgeoning battery business. Plus, our restructuring efforts are paying off, setting the stage for accelerated growth from 2025! Stay tuned for more updates as we drive toward a greener, more sustainable future! 🌱💡 #Volkswagen #Investments #Sustainability