Volkswagen Group cuts outlook for second time in three months

Germany's ailing Volkswagen Group on Friday cut its annual guidance for the second time in less than three months.

The largest carmaker in Europe announced after the market closed that it now expects around 9 million vehicles to be sold this year. The group had earlier forecast a 3% rise over 2023, when 9.2 million were delivered to customers.

The previously targeted revenue increase of up to 5% above the €322 billion ($359 billion) generated last year was revised downward, with revenues expected to be only €320 billion.

Volkswagen is in a deep crisis and recently announced a drastic austerity programme.

At the core brand, the company recently scrapped job security measures that had been in place for decades. Layoffs and plant closures are also being discussed. It is still unclear how many jobs could be affected.

Weak sales in the VW brand's passenger cars division was blamed, in part, for the cut in guidance.

Recently, Mercedes-Benz, BMW and VW's sports car subsidiary Porsche have also had to cut their outlook for the financial year. Automotive suppliers are in even worse shape.

The Volkswagen Group also said Friday it expects weaker profits this year. It estimates the operating result will come in at €18 billion, corresponding to an operating profit margin of around 5.6%. The company had previously expected around 6.5% to 7%.

In July, VW had lowered its earnings forecast due to expected costs for the Audi plant in Brussels, which is on the brink of collapse.