Shares in Volkswagen Group (XETRA:VOW) held firm after it reduced its 2024 sales forecast and flagged the potential closure of an Audi electric vehicle (EV) plant in Brussels.
The shutdown decision could significantly impact Volkswagen’s overall results with the auto giant now projecting an operating return on sales of between 6.5% and 7%, down from the previous 7% to 7.5%.
The possible closure stems from a decision by Audi's supervisory board to initiate an information and consultation process at the Brussels site, driven by demand fluctuations for the Audi Q8 e-tron in certain markets.
If the closure proceeds, it would contribute to Volkswagen’s unplanned expenses, estimated at approximately $2.8 billion for 2024.
These expenses also include exchange rate losses due to the deconsolidation of Volkswagen Bank Rus, charges from the planned shutdown of MAN Energy Solutions’ gas-turbine operations, and costs associated with administrative staff terminations announced in April.
In early trading, VW stock was little changed at €106.80.