Why is VW stock dropping?
German autos giant Volkswagen reported a 15% year-on-year drop in annual operating profit on Tuesday, citing increasing costs and extraordinary expenses associated with its restructuring strategy. German autos giant Volkswagen reported a 15% year-on-year drop in annual operating profit on Tuesday, citing increasing costs and extraordinary expenses associated with its restructuring strategy. It posted a revenue of 324.VW expects its operating profit margin to increase to between 5. Sales will rise by up to 5%. In 2024, VW sales revenue rose 0. VW’s 2024 operating profit fell 15% to €19.The primary causes of Volkswagen’s current difficulties include high production costs in Germany (especially labour and energy costs), low productivity, and the brand’s dependence on the Chinese market.Other first-quarter highlights included: Volkswagen posted operating profit of 4.Volkswagen has reported a 60% drop in profits amid a slump in sales in China, with the carmaker emphasising the difficulties it faces as it prepares to close factories in Germany for the first time.
Is Volkswagen a safe investment?
VW’s underlying EBIT margin of between 7% – 8% is well in line with the ‘a’ category median on Fitch’s Navigator tool. Growth Prospects From New Models: We forecast VW’s industrial revenue to grow at close to 4% per year beyond 2024, outpacing our volume growth expectations, which are 1. Outlook for 2025 The Volkswagen Group expects the sales revenue to exceed the previous year’s figure by up to 5 percent. The operating return on sales for the Group is expected to be between 5. This does not include any impact from tariffs recently announced.
Who owns the most VW stock?
Porsche SE is the largest shareholder of Volkswagen, owning 31. However, thanks to non-voting shares that other shareholders own, it controls 53. As of December 2022, the market value of Porsche SE’s stake in Volkswagen was $25. Volkswagen Group posts solid growth in deliveries in 2023 and strong increase in all-electric vehicles. North America (+17. China, the Group’s largest single market, grew by 1.Outlook for 2025 The Volkswagen Group expects the sales revenue to exceed the previous year’s figure by up to 5 percent. The operating return on sales for the Group is expected to be between 5. This does not include any impact from tariffs recently announced.Amongst the three largest auto manufacturing groups based in Germany, Volkswagen Group produced the most revenue from worldwide operations in 2024 with nearly 325 billion euros generated.The Group comprises ten brands from five European countries: Volkswagen, Volkswagen Commercial Vehicles, ŠKODA, SEAT, CUPRA, Audi, Lamborghini, Bentley, Porsche and Ducati. In addition, the Volkswagen Group offers a wide range of further brands and business units including financial services.The Volkswagen owner is Volkswagen Aktiengesellschaft. In America, the production and sale of Volkswagen vehicles are managed by Volkswagen Group of America, a subsidiary of the Volkswagen Group.
Is Volkswagen buy or sell?
Volkswagen has a consensus rating of Moderate Buy, which is based on 6 buy ratings, 7 hold ratings and 0 sell ratings. Volkswagen’s analyst rating consensus is a Moderate Buy. This is based on the ratings of 13 Wall Streets Analysts.We’ve gathered opinions of 26 analysts rating BMW stock in the past 3 months. After counting all points of view, the overall rating was calculated as buy.
Why are VW shares so cheap?
Volkswagen’s third-quarter earnings missed expectations, pushing shares to a 24-year low. Europe’s biggest automaker faces rising costs, restructuring expenses, and slowing demand, particularly in China. Challenges in the EV market and regulatory pressures are straining profitability. Germany sold cars, chemicals and machinery to China, while China in turn supplied consumer goods and things like batteries and electronics. But now, China produces most of those locally, at much lower costs. So, VW cars aren’t as competitive in China anymore. Even in the US, VW struggled to understand the market.Volkswagen’s issues lie partly in its high fixed costs, which are worsened by an expensive home market and large investments in electric vehicles (EVs). The company has spent billions developing EVs and new technology to catch up with competitors, but the revenue has not followed.Western Europe was the largest market for Volkswagen although China remained the largest single-country market but VW Group sales in the world’s largest car market were flat in 2023.VW, along with other German carmakers, has been badly affected by a decline in demand for its cars in China, previously a lucrative market. At the same time, Chinese brands have been moving into Europe, increasing competition for sales.
Is VW in financial trouble?
Volkswagen is grappling with mounting financial troubles, signalling a worsening situation in its global manufacturing operations. With two profit warnings in three months, the automotive giant faces falling EV sales, factory underutilisation, and tariff threats from China. Despite these efforts, Volkswagen’s financial performance has yet to fully recover from the impact of the emissions scandal. The company continues to face significant challenges, including increasing competition from other automakers and the impact of the COVID-19 pandemic.