VW and Daimler on Wednesday urged the German government to help boost demand for cars as the coronavirus pandemic hammered first-quarter profits and forced both carmakers to drop their outlooks for the year.
) on Wednesday urged the German government to help boost demand for cars as the coronavirus pandemic hammered first-quarter profits and forced both carmakers to drop their outlooks for the year.
The demands came as German chancellor Angela Merkel prepares to host a summit with auto industry leaders to discuss ways of reviving one of the country’s most important industries which has been crippled by the coronavirus pandemic. Volkswagen warned it faced a difficult second quarter and that a planned dividend increase might have to be reconsidered. In February, it proposed raising the payout to 6.50 euros per ordinary share, up from 4.80 euros in 2018, and 6.56 euros per preferred share, up from 4.86 euros.
Global passenger car sales are expected to drop by 15%-20%, Volkswagen forecast, echoing auto supplier Robert Bosch, which also said on Wednesday it saw a fall in car production of at least 20% this year.Earlier this month, Volkswagen said first-quarter car sales dropped by 23% from the year before, causing operating profit to tumble 81% in the three month period and forcing the car and truck manufacturer to withdraw its guidance for 2020.Bosch also said it could not give an outlook for 2020.
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