Volkswagen sticks to profit goal despite 'very bad' second quarter

Volkswagen and its peers have been hit hard by the coronavirus crisis as factories and showrooms remain shuttered and they have started opening only n
...
FILE PHOTO: Volkswagen has had a turbulent few weeks, with an internal management dispute, furor over a racist marketing video and software issues. (REUTERS)
FILE PHOTO: Volkswagen has had a turbulent few weeks, with an internal management dispute, furor over a racist marketing video and software issues.

Volkswagen AG is standing by its goal of posting an operating profit this year even as the collapse in car demand from the coronavirus pandemic hits its second-quarter performance.

The second quarter is going to be “very bad," and the German carmaker will have to be highly disciplined on spending to meet its target for the year, according to comments from Chief Executive Officer Herbert Diess and Chief Financial Officer Frank Witter at an internal meeting with managers.

Also check these Vehicles

Find more Cars
Volkswagen Polo 2024 (HT Auto photo)
UPCOMING
999 cc Petrol Manual
₹ 8 Lakhs
View Details
Volkswagen Tiguan 2025 (HT Auto photo)
UPCOMING
1984 cc Petrol Manual
₹ 37 Lakhs
View Details
Volkswagen Taigun (HT Auto photo)
1498.0 cc Petrol Both
₹ 10.49 - 17.50 Lakhs
Compare
View Offers
Volkswagen Virtus (HT Auto photo)
1498 cc Petrol Both
₹ 11.56 - 19.41 Lakhs
Compare
View Offers
Volkswagen Tiguan (HT Auto photo)
1984.0 Petrol Automatic
₹ 32.79 Lakhs
Compare
View Offers
Volkswagen Id.7 (HT Auto photo)
UPCOMING
77 kWh 621 Km
₹ 70 Lakhs
View Details

Also Read : Volkswagen, Audi on hold as Mexico's Puebla state not ready to reopen

Volkswagen confirmed the comments by the two executives by phone on Monday, after WirtschaftsWoche first reported them.

Volkswagen and its peers have been hit hard by the crisis, which forced factory stoppages and crippled sales in key markets from China to the US. The German carmaker had pulled its forecast in late April, telling investors that the three months through June will be tough but that cost-cutting efforts will allow VW to remain profitable for the full year.

Also Read : Volkswagen launches ID. Chargers in Europe ahead of ID.3 electric car delivery)

The Wolfsburg-based company has had a turbulent few weeks, with an internal management dustup, furor over a racist marketing video and software issues affecting the rollout of the flagship ID.3 electric car.

Even as factories are ramping up again, consumer behavior remains uncertain amid shaky confidence and concerns that restrictions could be tightened again in the event of a second wave of infections.

First Published Date: 16 Jun 2020, 11:12 AM IST
NEXT ARTICLE BEGINS

Please provide your details to get Personalized Offers on

Choose city
+91 | Choose city
Choose city
Choose city

Want to get the best price for your existing car?

Powered by: Spinny Logo
By clicking "View Offers" you Agree to our Terms and Privacy Policy

Dear Name

Please verify your mobile number.

+91 | Choose city
Couldn't verify the OTP.
It's either expired or it's incorrect.