Volkswagen (ETR:VOWG_p) announced on Thursday that it plans to enhance its cash flow in the second half of the year by raising prices and reducing expenses. This initiative comes despite the fact that the German automobile manufacturer has reduced its 2023 delivery forecast. At 04:05 ET (08:05 GMT), the company's shares had fallen by 3.5%, making it the largest drop among Germany's DAX 30 blue-chip companies.
The automaker now expects between 9 million and 9.5M vehicle deliveries this year, down from the company’s earlier target of 9.5M.
The company added that its financial targets for the year remain unchanged, implying that it would offset the decline in deliveries through increased pricing and improved production efficiency.
"In the first half of the year, we achieved solid financial results and took major steps to improve our competitiveness. The focus for the second half is now on strengthening net cash flow," said chief financial officer Arno Antlitz.
Volkswagen reported that there has been an improvement in the availability of essential parts like semiconductors, transportation, and logistical hindrances that impacted the first half. Despite these challenges, the company is optimistic about significantly reducing wait times during the second half. Additionally, Volkswagen noted a steady demand with completely filled order books, tallying up to 1.65M vehicles.