Volkswagen will reduce supply due to reduced demandOctober 30, 2019
The German concern lowered its forecast for car deliveries for 2019, citing a decrease in demand, despite the growth in profits of Porsche and Skoda brands.
VW Group profit in the third quarter grew by 37% to 4.82 billion euros (5.36 billion dollars). Evercore ISI analysts rated the Porsche margin at 16.8%, significantly outperforming Audi by 7.5% and the VW brand by 4.1%.
“The units have exceeded expectations that will help make money,” says Arndt Ellinghorst of Evercore.
In the nine months of this year, profit rose to 14.8 billion euros (16.4 billion dollars). VW said that a slowdown in global demand would ensure that car deliveries in 2019 will be consistent with previous years, adjusting its early forecast in which deliveries were to exceed performance.
“Despite increasing market share, the Volkswagen Group expects automotive markets to shrink faster than previously anticipated in many parts of the world,” VW Group said on Wednesday.
The increased demand for higher-margin VW Tiguan and Touareg models helped offset the nine-month drop in VW brand sales. It is expected that the revenue of the passenger car division this year will grow by 5 and will be in the range from 6.5% to 7.5% throughout the year.
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