Volkswagen has raised its mid-term revenue outlook on demand for new sport-utility vehicles in emerging markets and upgraded a pre-tax profit goal even as it pushes investments in electric cars and new technologies.
The world's largest carmaker by sales now expects group revenue to exceed last year's record of €217 billion by more than a quarter by 2020, after saying in March it expected it to increase by more than a fifth.
"We have a slightly more positive outlook now than in the spring," group sales chief Fred Kappler said today during a call with analysts.
But growing spending on electric cars, the first generation of which will be less profitable, and persistent investment in combustion engines required by tightening emissions rules has caused VW to keep its operating profit guidance broadly unchanged, finance chief Frank Witter said.
VW said group operating profit (EBIT) could rise by 25% or more by 2020 from the €7.1 billion reached in 2016.
In March, the carmaker had expected group EBIT to exceed year-ago levels by 25%.
"Cost discipline, productivity improvements and execution of one-time product launches are certainly vital to reach our goals," CFO Witter said.
The Wolfsburg-based carmaker on Friday outlined plans to spend more than €34 billion through 2022 on electric cars, autonomous driving and new mobility services as it seeks to draw a line under its emissions scandal and become a global leader in zero-emission vehicles.
Group pretax profit is now seen growing by 30% or more by the end of the decade, Mr Witter said, citing an expected contribution of €3-€3.5 billion from Chinese joint ventures.
The company had forecast a rise by 25% or more in March.
