Volkswagen urged the German government on Wednesday to help boost demand for cars as the coronavirus pandemic triggered a plunge in first-quarter operating profit and the world's biggest automaker warned of a difficult second quarter.
FILE PHOTO: A cartoon of a VW logo squashing the coronavirus is displayed on a building at Volkswagen's headquarters to celebrate the plant's re-opening during the spread of the coronavirus disease in Wolfsburg, Germany April 25, 2020. REUTERS/Fabian Bimmer
“We need a swift decision on buyer incentives,” Chief Financial Officer Frank Witter said, ahead of a meeting between politicians and lobbyists in Berlin to decide on a potential stimulus plan to revive demand. Volkswagen also warned 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.
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 trucks manufacturer to withdraw its guidance for 2020.
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