World Trade

“VW Reduces 2023 Delivery Forecast, Focuses on Enhancing Cash Flow”

VW just had a bit of a bumpy ride, folks! They’re looking to boost their cash flow in the second half by jacking up prices and trimming costs. But, guess what? They had to lower their 2023 delivery expectations. Bummer, right?

Their shares took a tumble, down 3.5% at 0805 GMT, making ’em the biggest faller on Germany’s DAX 30 index. Ouch!

So, what’s the deal now? VW is now aiming to deliver somewhere between 9 million and 9.5 million vehicles this year. That’s a bit lower than their earlier target, thanks to the uncertain economic times.

But don’t fret too much, they’ve got a plan up their sleeves. Financial targets for 2023 stay put, my friend. They’re gonna make up for those lower deliveries by bumping up those prices and getting more efficient in their production game.

It wasn’t all smooth sailing in the first half, though. Supply snags hit ’em hard, especially with those pesky semiconductors. And don’t even get me started on the transport and logistics delays!

VW’s hoping for better days ahead, though. They’re crossing their fingers for shorter waiting times in the second half. And here’s a nugget of good news – demand is still holding strong. Order books are full, with a whopping 1.65 million vehicles ready to roll out.

But you know what’s wild? Their outlook is totally different from their European rivals. Check this out – Mercedes-Benz is raising their earnings outlook for the whole year! And Renault? Oh, they’re boasting strong margins thanks to higher car prices and cost cuts. Stellantis? Crushing expectations with their results!

But let’s not forget the positive bits. In the period from April to June, VW delivered a massive 2.3 million vehicles worldwide. That’s a sweet 18% jump from last year. Not too shabby!

VW’s CFO, Arno Antlitz, knows what’s up. He’s all about focusing on beefing up that net cash flow in the second half. They’re shooting for somewhere between 6 billion and 8 billion euros. Yep, that’s a whole lotta cash!

Speaking of cash, it’s worth mentioning that their second-quarter results weren’t stellar. They took a nosedive of over 71%, landing at 226 million euros. Ouch!

But it’s not all doom and gloom. Some of their brands are doing pretty darn well. Volkswagen Passenger Cars, VW Commercial Vehicles, Seat, Skoda, and Cupra scored a decent 5.5% operating margin in the first half. And Audi, Lamborghini, Bentley, and Ducati? Even better with a 10% operating margin!

The whole gang is getting in on the action to amp up efficiency. Yep, they’re all part of these fancy performance programs. Volkswagen Passenger Cars alone is eyeing a whopping 10 billion euros in efficiency gains by 2026. Talk about ambitious!

And brace yourselves for some more news – VW just sold its Russian operations for a cool 125 million euros. That’s no small chunk of change!

So, what’s the takeaway, amigos? VW’s facing some challenges, but they’re not backing down. They’ve got plans in motion to turn things around in the second half. Let’s see how this ride unfolds! Fingers crossed!

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button