STUTTGART: Volkswagen expects its operative profit, net cash flow and net liquidity to land at the bottom end of annual forecasts, it said on Wednesday, citing growing trade barriers, rising competition and emissions regulations.
Battery-electric car sales, which more than doubled in Europe in the first quarter, had also weighed on its margin, the company said, in a sign of the difficulties faced by legacy carmakers to yield the same profits on battery-electric vehicle production they have long enjoyed for making combustion engine cars.
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“We need to ensure a competitive cost structure alongside our strong offering of vehicles to stay successful in a rapidly changing world,” Chief Financial Officer Arno Antlitz said in a statement.
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