Volkswagen’s yearly operating profit fell by 15% in 2024 due to rising costs and restructuring-related expenses. The German automaker reported sales of 324.7 billion euros ($352.8 billion), a slight increase from 322.3 billion euros the previous year.
Despite the profit decline, Volkswagen expects sales revenue to grow by up to 5% in 2025, with an operating margin projected between 5.5% and 6.5%. The company described its 2024 performance as “solid results in a challenging environment,” even as car sales declined by 3.5%.
At its annual general meeting in May, Volkswagen will propose a dividend of 6.30 euros per ordinary share and 6.36 euros per preferred share, a 30% decrease from the previous year. The company also reported a 10.5% drop in net liquidity for its automobile division, which stood at 36 billion euros at the end of 2024.
Looking ahead, Volkswagen warned of challenges, including political uncertainty, trade restrictions, geopolitical tensions, rising competition, volatile commodity prices, and emissions-related regulations.
