Volkswagen says new models should lift orders in Western Europe
© Reuters. FILE PHOTO: A Volkswagen ID.5 electric car is displayed at a showroom of a car dealer in Reze near Nantes, France, November 13, 2023. REUTERS/Stephane Mahe/File Photo
By Miranda Murray and Nick Carey
BERLIN (Reuters) – Volkswagen (ETR:) expects vehicle orders in Western Europe to gain a boost in the coming months from new models including fully electric cars, it said on Wednesday.
The German automaker Volkswagen, which recently launched its ID.7 and plans a record 30 more new models during 2024, said it has “started the new year with a clearly positive trend” compared with the start of last year.
Volkswagen this month released a muted outlook for 2024 and a higher dividend, rewarding shareholders ahead of what it expects to be a tougher environment for carmakers in light of rising costs and fierce competition.
“To ensure that we remain successful sustainably, we will focus in 2024 on ramping up new vehicles, reducing costs,” finance chief Arno Antlitz said in a statement, adding that the company will focus on profitable growth in North America.
Volkswagen has already announced plans to cut administrative staff costs at its VW brand by a fifth, adding that this would be through partial and early retirement rather than layoffs.
The operating profit margin for the group’s core mass-market brands rose to 5.3% last year from 3.6% in 2022, with the company targeting 8%.
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