Volkswagen shares dipped Wednesday after the company issued an overnight profit warning and announced it was considering the potential closure of an Audi plant in Brussels.
The company has now lowered the forecast for its operating return on sales to a 6.5% to 7% range, from 7% to 7.5% previously.
It noted that is also considering the restructuring or potential shutdown of its Audi plant in Brussels on the back of weak demand for the Audi Q8 e-tron line — a fully electric offering from the brand.
The cost of the prospective closure or of finding an alternative use for the site, among other factors, could lead to a hit of up to 2.6 billion euros ($2.81 billion) to the company’s operating profit in the 2024 fiscal year, Volkswagen said.
The carmaker’s stock was down 1.45% at 10:27 a.m. London time on Wednesday.
This breaking news item is being updated.
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