The automaker now expects annual sales revenue and car deliveries to range from flat to a 3% decline, versus prior guidance for flat to 3% growth, as tariffs, trade tensions and Chinese competition weigh on earnings.
Volkswagen lowered its full-year outlook for sales revenue and car deliveries after reporting a 9.5% drop in second-quarter operating profit. The company now expects annual sales to range from unchanged to a 3% decline, compared with previous guidance for flat to 3% growth, while maintaining its operating margin forecast at 4.0% to 5.5%. Volkswagen reported April-June operating profit of €3.5 billion, below the €3.9 billion expected in a Visible Alpha poll, and said tougher industry conditions including tariffs, geopolitical and trade conflicts, regulatory requirements, volatile markets and intensified competition are increasing pressure.