Following Handelsblatt’s report that Brand Group Core could miss its 2024 cost-cut target (4 billion euros) by 2-3 billion euros, I have lowered my estimates for Volkswagen Group’s 2024 operating return on sales to 6.28% from 6.54%. The changes are as a result of reduction in Brand Core’s 2024 operating result before special items by 840 million euros.
N/B: Volkswagen expects a range to the lower end of the guided 6.5% to 7%.