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- Volkswagen (VWAGY, VWAPY) shares closed 1.4% lower Tuesday as selling pressure was triggered after the company said its Brussels facility which manufactures the Audi Q8 e-tron EV model could be shuttered due to lackluster demand for the vehicle.
- The expenses incurred to close the facility, and other unplanned costs could be as much as €2.6B in 2024, recognized as expenses in Q2. This will impact primarily the Volkswagen Group (VWAGY, VWAPY), The Core brand group, the Progressive brand group, and the Financial Services division. The Sport Luxury (Porsche AG) and Trucks (TRATON SE) brand groups are not affected by these expenses.
- Accordingly, Volkswagen (VWAGY, VWAPY) has lowered its 2024 forecast for operating returns on sales to be in the range of 6.5% to 7.0% from 7.0% to 7.5% previously.