VW slips into the red

Closed car dealerships, interrupted supply chains, shutdown production lines: the Corona crisis is hitting the world’s largest car manufacturer hard. Now the dividend is being cut.

Flags with the VW logo fly in the Volkswagen vehicle plant in Zwickau.

Dhe Volkswagen Group felt the corona crisis fully in sales and earnings and, as expected, slipped into the red. Before taxes, there was a loss of 1.4 billion euros in the first half of the year, as the Dax group announced on Thursday in Wolfsburg. A year ago, VW had made a profit of 9.6 billion euros here. Because the production lines were idle for a long time, especially in March and April, and hardly any cars could be sold in Europe or North America, sales fell by 23 percent to 96 billion euros.

Because of the further development that is still not reliably assessable, the management wants to cut the dividend proposal for the past year by 1.70 euros to 4.86 per preference share in order to save money. Ordinary shareholders get 6 cents less each.

With regard to the operating result before special items, Volkswagen was slightly better than analysts’ estimates with a minus of 0.8 billion euros. A year ago, VW had also earned 10 billion euros here. The group remains with the business outlook for 2020: The operating result should remain significantly below the previous year’s figure, but it should still be positive.

VOLKSWAGEN

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