Volkswagen lowered its 2020 sales forecast to 20%.
Editor’s note: This article is from “Future Car Daily” (WeChat public ID: auto-time), author: Zhang.
Author | Zhang Yi
Editor | Li Huanhuan
According to Bloomberg, Volkswagen Group November 18 The operating profit and sales growth expectations were lowered while maintaining the profit margin target unchanged.
The Volkswagen Group expects that the company’s operating profit excluding special items will increase by at least 25% during the period 2016-2020, which is lower than the previous forecast of more than 30%. In addition, the company also lowered its sales growth forecast for the same period from more than 25% to 20%.
Volkswagen Group CEO Herbert Diess said in a conference call with analysts and investors on Monday: “We are facing a declining market environment.”
Volkswagen CFO Frank Witter said the company’s 2021 sales return target should be similar to 2020, and he acknowledged that the Audi’s expected target margin of 9% to 11% is “It is very difficult.”
In response, Citi analysts believe: “This largely reflects the weakening of sales growth expectations.”
Affected by factors such as a slowdown in market economic growth, Volkswagen has lowered its global vehicle delivery forecast at the end of last month. Volkswagen said that the slowdown in global demand will result in the car delivery of the Volkswagen Group in 2019 unchanged from the previous year. Previously, the company predicted a slight increase in deliveries this year.
In response to changes in the economic environment, the Volkswagen Group has significantly increased its investment in future automotive technologies. Volkswagen Group announced on Monday that it will invest 600 in hybrid, electrification and digitization in the next five years.It is estimated that it will launch 135 new energy vehicles in the next 10 years.
To achieve profitability targets, Diss said the company will increase sales of high-margin SUV models to reduce the cost of electric vehicles. He also said that the manufacturing cost of the Volkswagen ID.3 electric car will be 40% cheaper than that of the golf car. The modular battery pack being developed by the Volkswagen Group will help improve battery production efficiency and achieve economies of scale.
The company said that by 2025, the cost of electric vehicles will be the same as that of gasoline and diesel, which will help achieve its profit margin target.
Announcement Display, Volkswagen Group expects that by 2020, operating profit excluding special items should be maintained between 6.5% and 7.5%, and strive to reach 7% to 8% by 2025.
