A Volkswagen emblem on the wheel of an e-up. electric vehicle tire.. Julian Stratenschulte | Picture Alliance | Getty Images. Volkswagen, the German car manufacturer, announced on Wednesday that its operating profit decreased by 42% in the third quarter. The operating profit dropped to 2.86 billion euros ($3.1 billion), and third-quarter sales revenues fell 0.5% year-on-year to approximately 78.5 billion euros. The company reported an 8.3% decline in vehicle sales during the third quarter of 2023 compared to the same period last year. By the end of September 2024, Volkswagen Group’s net liquidity was at negative 160.6 billion euros. At the end of 2023, the company reported a net liquidity of negative 147.4 billion euros. On Wednesday, Volkswagen announced that its performance in the first three quarters of the year was affected by increased fixed costs and restructuring initiatives. Operating profit from January to September this year fell by 21% compared to the previous year. At 8:19 a.m., Volkswagen shares were up by 1.8%. Arno Antlitz, the chief financial officer and chief operating officer of Volkswagen Group, stated that the performance demonstrated a “difficult market situation” and emphasized the significance of ongoing performance initiatives throughout the company. The results for the third quarter follow Volkswagen’s decision last month to lower its annual outlook for 2024 for the second time in just a few months. At that time, the car manufacturer anticipated a profit margin of approximately 5.6% for the year and a 0.7% decrease in sales to 320 billion euros. The figures remained the same on Wednesday. Volkswagen has faced difficulties in recent months, signaling possible factory closures in Germany and terminating several labor agreements with local employees in September.
