Volkswagen shares slip as it considers Brussels plant closure on weak EV demand

News

A Volkswagen logo is seen at the New York International Auto Show Press Preview, in Manhattan, New York City, U.S., March 27, 2024. 
David Dee Delgado | Reuters

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.

Products You May Like

Articles You May Like

Team principal Ward leaves McLaren IndyCar team
Someone’s Flipping Tesla’s $40 Tiny Bot For $10,000 On eBay
Tesla stock pops after report Trump wants to relax U.S. self-driving rules
Tesla makes finding charging stations for people towing trailers easier
Jorge Martin closes out first MotoGP world title

3 Comments

Leave a Reply

Your email address will not be published. Required fields are marked *