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Volkswagen lowers its 2025 operating return on sales guidance to a range of 2% to 3% from 4%-5% due to portfolio adjustment at Porsche
- Volkswagen said due to portfolio adjustment at Porsche it will recognize a negative impact of around €5.1 billion in 2025 (Goodwill: -€3 billion, special effect: -€2.1 billion).
- It now expects net cash flow in the Automotive division to be around €0 billion (previously: €1 to 3 billion) and net liquidity to be around €30 billion (previously: €31 to €33 billion).
- Revenue guidance for 2025 remains unchanged.
- Porsche lowered its medium term target to 10-15% from 15 to 17% as a result of the change in the cycle plan.
- Volkswagen shares are down 2.7% forty minutes after the news broke.
Assessment
The situation must be really tough for Porsche to lower its medium-term target despite the change in the cycle plan to produce the model above Cayenne as ICE/hybrid instead of the BEV. Porsche also said they expect considerable additional burdens due to external factors such as US import tariffs, decline in demand from China and slow adoption of electromobility.