German automaker Volkswagen Group’s total output in the first nine months of 2020 (Jan-Sep) declined by 23.4pc to 6.1mn units from the prior-year period due to disruption of supply chain and production stoppage owing to COVID-19-induced restrictions, the company said in its interim report.
The output at its German plants in the Jan-Sep period fell by 31.8pc to 1mn units, while output from international plants stood at 5mn units, down by 21.3pc from the prior-year period.
Volkswagen’s vehicle sales in the Jan-Sep period declined by 18.7pc to 6.5mn units from 8mn units in the prior-year period as the group’s business was heavily impacted by the Covid-19 pandemic.
Passenger car and light commercial vehicle (LCV) sales in the Jan-Sep period stood at 6.3mn units, down by 18.5pc from the prior-year period as a consequence of the debilitating market conditions arising from uncertainty and measures taken to tackle the COVID-19 pandemic globally.
Sales of commercial vehicles in Jan-Sep declined by 28.7pc to 127,664 units as compared to the same period year prior.
The company’s sales revenue in Jan-Sep stood at €155.5bn ($186.6bn), down by 176.7pc from the prior-year period.
The company has forecast auto sales in 2020 to decline significantly as compared to the prior year due to the economic impact of Covid-19 and the sector will face difficulties from the increasing intensity of competition, volatile commodity, foreign exchange markets, and more stringent emissions-related requirements.
The group is expecting lower 2020 operating results than the year prior but in positive territory. It said that net cash flow for 2020 is expected to be positive, but significantly below the prior-year figure due to lower customer demand and further payouts in relation to diesel and cash outflows from mergers and acquisitions.