Sep. 19 at 7:26 PM
Volkswagen cut its 2025 outlook on Friday, citing impairments and costs linked to Porsche’s decision to keep combustion-engine models. The group now expects an operating return on sales of 2–3%, down from 4–5%, and no net cash flow in its automotive division versus a prior forecast of €1–3 billion. Net liquidity is projected at €30 billion, slightly below earlier guidance.
Revenue guidance for 2025 remains unchanged from 2024. Volkswagen, which owns brands including Audi, Skoda, Seat, and Cupra, will report Q3 results on October 30.
The downgrade follows Porsche’s revised mid-term profitability goal of 10–15% between 2026 and 2030, down from 15–17%. For 2025, Porsche now expects a sales margin of up to 2% versus 5–7% previously, citing project write-downs and provisions. Its shift away from certain initiatives and continued focus on combustion engines will cut Volkswagen’s operating result by €5.1 billion.
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