The company’s decision to terminate its autonomous driving partnership with Bosch continues to loom over the balance sheet. RBC Capital Markets analyst Tom Narayan anticipates a low-triple-digit million euro hit from the split, potentially offsetting gains elsewhere. Despite these headwinds, Citi analysts point to a 10% sales growth outside of China as a stabilizing force, keeping the EBIT margin within the targeted 4% to 5.5% range.
In section Market Quotes
Volkswagen Faces Margin Pressures Ahead of Second-Quarter Results
With shares down 18% over the past year, Volkswagen enters Friday’s earnings report under a cloud of investor scrutiny. Analysts expect revenue of 81.16 billion euros and operating profit of 4.02 billion euros, but the focus remains on the automaker’s ability to navigate restructuring costs and cooling demand.
Management is expected to face intense questioning regarding the group's European manufacturing footprint. J.P. Morgan notes that while a strategic plan to boost competitiveness is already in motion, specific details on workforce reductions remain fluid. Negotiated restructuring charges are set to drive cash outflows over the next three to four years, making the upcoming commentary on cost-cutting measures the primary indicator of the firm's long-term health.
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