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Wednesday, 12 August 2020
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Tuesday, 17 Mar 2020 04:00 pm

Volkswagen bracing for a "very difficult" year as the coronavirus pandemic shakes the global economy

"2020 is a very difficult year. The corona pandemic presents us with unknown operational and financial challenges," chief executive Herbert Diess said in a statement.

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The CEO of Volkswagen on Tuesday said the German auto giant was bracing for a "very difficult" year as the coronavirus pandemic wreaks havoc with the global economy. The group did not unveil an outlook for 2020, saying the volatile situation and the unprecedented shocks to supply and demand made it "almost impossible" to make a reliable forecast.

"2020 is a very difficult year. The corona pandemic presents us with unknown operational and financial challenges," chief executive Herbert Diess said in a statement.

"We will succeed in overcoming the corona crisis by pooling our strengths," he added.

The stark assessment came as the group published its full results for 2019, having already released partial figures last month.

The firm, whose stable of 12 brands includes Porsche, Audi, Seat and Skoda, saw revenues climb 7.1 per cent to 252.6 billion euros (USD 282 billion).

It achieved a net profit attributable to shareholders of 13.3 billion euros, up 12.8 per cent on 2018, driven by strong sales of more expensive models.

The group is due to hold its annual press conference by live stream later on Tuesday.

As more European governments impose measures to keep people at home to stem the spread of the virus, carmakers have begun shutting down factories.

Italian-American automaker Fiat Chrysler has halted production at six plants in Italy and one each in Serbia and Poland until March 27.

France's PSA Group, whose brands include Peugeot, Citroen and Opel, has said it too will shutter its European production sites starting this week.

Volkswagen's finance chief Frank Witter said it was "uncertain how severely or for how long" the pandemic upheaval will affect the company.

"Currently, it is almost impossible to make a reliable forecast," he said.

"We are making full use of all measures in task force mode to support our employees and their families and to stabilise our business."

Tags Volkswagen Pandemic Financial Crisis Automaker Economy Coronavirus

Neha Pandey

Aware of her elements, Neha writes the best articles across industries including electronics & semiconductors, automotive & transportation and food & beverages. Being from the finance background she has the ability to understand the dynamics of every industry and analyze the news updates to form insightful articles. Neha is an energetic person interested in music, travel, and entertainment. Since past 5 years, she written extensively on sectors like technology, finance and healthcare.


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