Volkswagen under more pressure. Grounds? Restructuring and rising costs

Luc Williams

The company forecasts that In 2025, sales will increase by a maximum of 5%, and the operational margin will remain in the range of 5.5-6.5%.

A decrease in vehicle sales, but solid results

Volkswagen recorded a drop in vehicle sales by 3.5% in 2024however, the Management Board assesses the results as solid, taking into account difficult market conditions. Despite this, the company announced a significant reduction in dividend – up to 6.30 euros per ordinary action and 6.36 euros per privileged action, which means a 30% decrease compared to the previous year.

At the end of 2024, the Volkswagen automotive department had 36 billion euros of net liquidity, which means a decrease by 10.5% year -on -year. In 2025, the company expects this value between EUR 34 and 37 billion. Maintaining a stable financial and liquidity policy remains a priority.

Challenges for 2025

Volkswagen warns against numerous difficulties for its business model, including political instability, growing trade restrictions and geopolitical tensions. Competition, variability of raw materials prices and exhaust emission regulations will also affect the activities – writes CNBC.

Financial Director of Volkswagen, Arno Antllitz, admits that The company is not fully satisfied with the current results. He emphasizes, however, that the company has strong brands, a global scale of activity and good products. Volkswagen plans further investments in electrification and digitization, which will charge financial results in a short period, but in the long run is to benefit.

The company intends to maintain a 25% share in the European market, keep its position in China and develop activities in the USA. Volkswagen emphasizes its presence in the United States, where he runs large production plants in Chattanooga and invests in new jobs, which is to strengthen its position on this market.

About LUC WILLIAMS

Luc's expertise lies in assisting students from a myriad of disciplines to refine and enhance their thesis work with clarity and impact. His methodical approach and the knack for simplifying complex information make him an invaluable ally for any thesis writer.