In an ad hoc release late yesterday, the Volkswagen Group slashed its annual financial results forecast over the costs of the potential shutting down of an Audi EV plant in Brussels. In total, this will lead to a “burden on the operating result of up to €2.6 billion in the 2024 financial year.”
“The Board of Management of Volkswagen AG has been informed today that the Supervisory Board of AUDI AG, against the background of the development of demand for the Audi Q8 e-tron model family in certain markets, has decided at its meeting today to support an information and consultation process at the Brussels site as required by Belgian law. In this process, the Board of Management of Audi Brussels S.A./N.V. is working together with the responsible social partners to develop solutions for the site. At the end of this process, the site may, among other things be closed down. The expenses expected as a result of alternative uses or a plant closure, which are expected to be accrued in the third quarter, in conjunction with the other unplanned expenses in the Volkswagen Group, will have a significant impact on the operating result of the Volkswagen Group in the 2024 financial year,” VW said.
“The other unplanned expenses comprise various items that had a negative impact on the Volkswagen Group’s operating result in the second quarter. These resulted, among other things, from exchange rate losses in connection with the de-consolidation of Volkswagen Bank Rus in the Financial Services Division and from expenses in connection with the planned closure of the gas turbine business of MAN Energy Solutions. In addition, as announced in April, Volkswagen recognized provisions of €0.9 billion for termination agreements as part of the sustainable reduction in administrative personnel costs at Volkswagen AG,” VW said.
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About Ken Zino
Ken Zino, publisher (kzhw@aol.com), is a versatile auto industry participant with global experience spanning decades in print and broadcast journalism, as well as social media. He has automobile testing, marketing, public relations and communications experience. He is past president of The International Motor Press Assn, the Detroit Press Club, founding member and first President of the Automotive Press Assn. He is a member of APA, IMPA and the Midwest Automotive Press Assn.
Zino is at home on test tracks, knows his way around U.S. Congressional hearing rooms, auto company headquarters, plant floors, as well as industry research and development labs where the real mobility work is done. He can quote from court decisions, refer to instrumented road tests, analyze financial results, and profile executive personalities and corporate cultures.
He also brings an historical perspective while citing their contemporary relevance of the work of legendary auto writers such as Ken Purdy, Jim Dunne or Jerry Flint, or writers such as Red Smith, Mark Twain, Thomas Jefferson – all to bring perspective to a chaotic automotive universe.
Above all, decades after he first drove a car, Zino still revels in the sound of the exhaust as the throttle is blipped and the driver’s rush that occurs when the entry, apex and exit points of a turn are smoothly and swiftly crossed. It’s the beginning of a perfect lap.
AutoInformed has an editorial philosophy that loves transportation machines of all kinds while promoting critical thinking about the future use of cars and trucks.
Zino builds AutoInformed from his background in automotive journalism starting at Hearst Publishing in New York City on Motor and MotorTech Magazines and car testing where he reviewed hundreds of vehicles in his decade-long stint as the Detroit Bureau Chief of Road & Track magazine. Zino has also worked in Europe, and Asia – now the largest automotive market in the world with China at its center.
VW Group – €2.6 Billion Exposure Over EV Plant Closing
In an ad hoc release late yesterday, the Volkswagen Group slashed its annual financial results forecast over the costs of the potential shutting down of an Audi EV plant in Brussels. In total, this will lead to a “burden on the operating result of up to €2.6 billion in the 2024 financial year.”
“The Board of Management of Volkswagen AG has been informed today that the Supervisory Board of AUDI AG, against the background of the development of demand for the Audi Q8 e-tron model family in certain markets, has decided at its meeting today to support an information and consultation process at the Brussels site as required by Belgian law. In this process, the Board of Management of Audi Brussels S.A./N.V. is working together with the responsible social partners to develop solutions for the site. At the end of this process, the site may, among other things be closed down. The expenses expected as a result of alternative uses or a plant closure, which are expected to be accrued in the third quarter, in conjunction with the other unplanned expenses in the Volkswagen Group, will have a significant impact on the operating result of the Volkswagen Group in the 2024 financial year,” VW said.
“The other unplanned expenses comprise various items that had a negative impact on the Volkswagen Group’s operating result in the second quarter. These resulted, among other things, from exchange rate losses in connection with the de-consolidation of Volkswagen Bank Rus in the Financial Services Division and from expenses in connection with the planned closure of the gas turbine business of MAN Energy Solutions. In addition, as announced in April, Volkswagen recognized provisions of €0.9 billion for termination agreements as part of the sustainable reduction in administrative personnel costs at Volkswagen AG,” VW said.
AutoInformed on
About Ken Zino
Ken Zino, publisher (kzhw@aol.com), is a versatile auto industry participant with global experience spanning decades in print and broadcast journalism, as well as social media. He has automobile testing, marketing, public relations and communications experience. He is past president of The International Motor Press Assn, the Detroit Press Club, founding member and first President of the Automotive Press Assn. He is a member of APA, IMPA and the Midwest Automotive Press Assn. Zino is at home on test tracks, knows his way around U.S. Congressional hearing rooms, auto company headquarters, plant floors, as well as industry research and development labs where the real mobility work is done. He can quote from court decisions, refer to instrumented road tests, analyze financial results, and profile executive personalities and corporate cultures. He also brings an historical perspective while citing their contemporary relevance of the work of legendary auto writers such as Ken Purdy, Jim Dunne or Jerry Flint, or writers such as Red Smith, Mark Twain, Thomas Jefferson – all to bring perspective to a chaotic automotive universe. Above all, decades after he first drove a car, Zino still revels in the sound of the exhaust as the throttle is blipped and the driver’s rush that occurs when the entry, apex and exit points of a turn are smoothly and swiftly crossed. It’s the beginning of a perfect lap. AutoInformed has an editorial philosophy that loves transportation machines of all kinds while promoting critical thinking about the future use of cars and trucks. Zino builds AutoInformed from his background in automotive journalism starting at Hearst Publishing in New York City on Motor and MotorTech Magazines and car testing where he reviewed hundreds of vehicles in his decade-long stint as the Detroit Bureau Chief of Road & Track magazine. Zino has also worked in Europe, and Asia – now the largest automotive market in the world with China at its center.