Volkswagen, the world’s largest automaker, said Thursday that it had lost nearly $1 billion in the first part of 2020 to the coronavirus, but expects to remain in the dark throughout the year. Only.
Global sales will fall particularly in 2020, but are expected to return to more than 10 million in 2021, according to Frank Schwope, an analyst at Norddeutsche Landesbank Girozentrale (NLG).
In the first part of 2019, VW reported an adjusted operating profit of 10 billion euros ($11.8 billion), however, in 2020, this became a loss of 800 million euros ($950 million). General profit margins fell in red for VW brands, adding Audi, Porsche, Lamborghini, SEAT and Skoda. The negative margin across 1.5% compared to a profit of 7.2% at the same time last year.
VW said accompanying the effects it expects its operating profit by 2020 to be particularly lower, but positive.
VW also reduced its dividend for 2019 to EUR 4.80 consistent with the inconsistent non-unusual percentage and 4.86 euros consistent with a consistent percentage liked of EUR 6.50 and EUR 6.56 in the past target.
Investors are gritting their teeth as automakers begin to reveal their monetary effects for the first part of 2020. A lot of red ink splashes your beads, and the nightly pain of the coronavirus ends for the most exposed manufacturers.
So far, Mercedes’ parent company, Daimler, has reported an operating loss of 1.68 billion euros at the time of the quarter ($1.950 million), not as bad as some feared. Volvo, owned by Geely Automobile Holdings Ltd of China, reported an operating loss of approximately $100 million in the first half, following a profit of $5.5 billion at the same time in 2019.
Early Thursday, Renault de France reported a net loss of 7.290 million euros ($8.6 billion) in the first half, compared to an operating profit of 1.5 billion euros at the same time last year. But at the beginning of the week, the PSA Group remained solidly benefiting despite the turbulence being undermined by the European market. PSA, which owns the Peugeot, Citroen, Opel and Vauxhall brands and is negotiating a merger with Fiat Chrysler Automobiles (FCA), said its net profit in the first half fell to 595 million euros ($700 million) from 1.830 million euros ($2.2 billion). . ) at the same time in 2019.
For VW, its business in China remained profitable, even though it fell to 1.4 billion euros ($1.6 billion) from 2.1 billion euros ($2.5 billion). Investors will do this, according to NLG’s Schwope.
“China is giving hope and could lead the coronavirus exit,” Schwope said.
Meanwhile, while VW investors have reason to be happy with the rest of the year, the company is about to launch its specially delayed electric car, the ID.3. This promises to bring VW’s reputation a little while recovering from the dieselgate scandal.
Around noon in Europe, VW shares fell by almost 4% to 139.7 euros.
As a former European Reuters correspondent, I spent a few years writing about the industry. I’ll penetrate the hype and arrogance and find
As a former European auto correspondent for Reuters, I spent a few years writing about the industry. I’m going to get to the hype and bragging from the corporations and find out what those gigantic corporations are doing. I also like to drive your adorable machines and your maximum modesty. I’ll tell you if the generation works too.