| 25 July 2024, Thursday |

Volkswagen raises operating margin target for 2021

Volkswagen increased on Thursday its operating margin target for 2021, pointing to stronger demand for more profitable cars during the first quarter of the year.

The Europe’s largest carmaker now expects its operating profit margin to be 5.5-7 percent this year, compared with a previous forecast for 5.0-6.5 percent, with both vehicle deliveries and vehicle sales up more than a fifth each.

First-quarter operating profit came in at 4.9 billion euros ($5.9 billion), helped by cost cuts and higher sales, a clear improvement from the 0.9 billion in the same period last year that was impacted by the COVID-19 pandemic.

“We’ve started into the year with a lot of momentum and a strong operating performance which is underpinned by our good quarterly figures,” Volkswagen AG Chief Executive Herbert Diess said.

  • Reuters