Volkswagen plans to enhance cash flow despite lower delivery forecast

Volkswagen announced on Thursday that it plans to enhance its cash flow in the second half of the year by raising prices and reducing expenses. This initiative comes despite the fact that the German automobile manufacturer has reduced its 2023 delivery forecast. At 8:05 AM GMT, the company's stocks had fallen by 3.5%, making it the largest drop among Germany's DAX 30 blue-chip companies.

The automaker now expects between 9 million and 9.5 million vehicle deliveries this year, down from the company’s earlier target of 9.5 million.

The company’s added that their financial targets for the year remain unchanged, implying that it would offset the decline in deliveries through increased pricing and improved production efficiency.

"In the first half of the year, we achieved solid financial results and took major steps to improve our competitiveness. The focus for the second half is now on strengthening net cash flow," said Chief Financial Officer Arno Antlitz.

Volkswagen reported that while there has been an improvement in the availability of essential parts like semiconductors, transportation and logistical hindrances impacted the first half. Despite these challenges, the company is optimistic about significantly reducing wait times during the second half. Additionally, Volkswagen noted a steady demand with completely filled order books, tallying up to 1.65 million vehicles.

By Michael Elkins | [email protected]

You May Also Be Interested In

• Micron offers Taiwan workers up to 68-month bonuses as strike threat looms
• S&P 500 above 8,000 in 2026 now looks ambitious, Citi says
• Roblox announces standalone apps, browser play, and creator wallet