Volkswagen Group sales fell 8.3% in the third quarter as headwinds continued

Volkswagen Group It just released its third-quarter earnings, and there’s no sugar-coating it as it’s been a brutal three months. Compared to this time last year, sales were down 8.3% and profits were down 41.7%.

The company generated just €2.86 billion (€3.11) billion in revenue in Q3; This figure was down from last year’s €4.89 ($5.31) billion. Given this massive decline, it’s no surprise that the automaker is dealing with plant closures, cost cuts and mass layoffs.

More: VW May Close Three German Factories, Lay Thousands Off

In the first nine months of the year, Group sales decreased by 4.4% to 6 million 762 thousand units. This helped drive operating results down 20.5% to €12.91 billion ($14.03). The latter figure comes despite sales revenue increasing slightly.

Volkswagen attributed the poor performance to a variety of issues, including high fixed costs and restructuring expenses. The company also cited shortcomings in its supply chain, the challenging macroeconomic environment and a “comprehensive renewal” of its luxury sports product portfolio.

CFO Arno Antlitz stated that the Volkswagen Brand “had an operating margin of only two percent after nine months.” “This underlines the urgent need to significantly reduce costs and increase efficiency.”

The group’s electric vehicle push also stalled, with the automaker confirming “reluctance from buyers across the industry”. electric vehicles. That’s a big problem for a company embracing electric vehicles, and Volkswagen said that sentiment helped keep EV deliveries 4.7% lower than a year ago.

Although it has been a difficult few months, there are signs of hope. Audi’s range includes the A5 and Q5, as well as the A6 and Q6 e-trons. Lamborghini has also introduced the Temerario, while Volkswagen has a new and updated range.

Despite these positive developments, things will not improve overnight and deep cuts are coming. Previous reports suggested three German factories, as well as a facility in Brussels, could also be on the chopping block.

Volkswagen Group 3rd Quarter and Year-to-Date Results