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Volkswagen Group cuts 2020 forecast after sharp fall in Q1 sales

Germany’s Volkswagen (VW) on Thursday said it would not meet its 2020 forecasts, after the group saw turnover fall to 55 billion euros (or 60 billion dollars) in the first quarter, down from 60 billion euros a year ago.

According to the provisional figures, operating profit fell sharply to 0.9 billion euros, down from 3.9 billion euros in the first quarter of 2019.

The group, however, attributed it to the turbulence in prices for raw materials and on capital markets.

Earlier, the Chief Financial Officer, Frank Witter indicated that the novel coronavirus pandemic would put profits under pressure, with the group taking measures to cut costs, ensuring liquidity was the highest priority.

The group is currently restarting production in stages at its plants in Europe and North America..