Written by Miranda Murray and Nick Carey
BERLIN (Reuters) – Volkswagen expects car sales to rise 3% this year, but decline sharply from 2023 amid a bleak economic outlook and increased competition.
Announcing the German automaker's 2023 results, financial chief Arno Antlitz said that “the overall economic situation remains difficult” but added: “Despite the weak economic outlook and intense competition, , we are confident in 2024,” he added.
Volkswagen delivered 9.24 million vehicles to customers in 2023, an increase of 12%.
The company said Wednesday that it expects new models, including fully electric vehicles, to increase car orders in Western Europe in the coming months.
Volkswagen recently launched its electric car ID.7 and plans to record a further 30 new models during 2024, marking a “clearly positive start to the new year'' compared to the beginning of last year. ” he said.
The company's shares were down 0.6% at 120.16 euros at 0920 GMT amid flat German markets.
Earlier this month, Volkswagen announced a modest outlook for 2024 and a dividend increase.
“To ensure our continued success, we will focus on new vehicle launches and cost reductions in 2024,” the company said in a statement, adding that it would focus on profitable growth in North America.
Volkswagen has already announced plans to cut administrative staff costs at its VW brand by a fifth, adding that this will be through partial retirements and early retirement rather than layoffs.
The operating profit margin for the group's core mass-market brands was 5.3% last year, up from 3.6% in 2022, and the company is targeting an 8% operating profit margin.
(1 dollar = 0.9153 euro)
(Reporting by Christina Amann; Writing by Miranda Murray; Editing by David Goodman and Mark Potter)
