TU-TESL

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(photo source: official website) according to foreign media reports, affected by the decline in passenger vehicle demand, Volkswagen Group lowered its operating profit and sales growth expectations on November 18, but the profit margin target remained unchanged. "Arguably, the best time has passed," Frank witter, VW's chief financial officer, told analysts in a conference call discussing the company's outlook In addition to Volkswagen, a number of car companies and parts suppliers, including China and the mainland, have warned that the auto industry is about to face a difficult time, and companies are facing higher investment pressure in clean energy and technology. VW expects operating profit excluding special projects to grow by at least 25% between 2014 and 2020, compared with the company's previous estimate of 30%. VW also cut its sales growth forecast for the period to 20% from 25%. VW's share price fell 4% to 176 euros after the new forecast was released. By contrast, the German blue chip dax.gdaxi index fell 0.6%. The Volkswagen Group has many brands, from Skoda and sieart, which are cheap, to high-end brands and so on. The group has confirmed its latest target of operating profit margin of 6.5% - 7.5% in 2019-2020 and 7% - 8% in 2025. Herbert diess, CEO of the company, said that in response to the rising cost of launching electric vehicles, the company will increase sales of models with high profit margin and further reduce the production cost of electric vehicles. He told investors that, for example, VW's latest id.3 electric car costs 40% less to produce than the electric version. He also revealed that due to the higher strength of the main frame structure used in the id.3 package, some costs can be saved in the body manufacturing process. In addition, the modular layout of the battery also helps to achieve efficient packaging and economies of scale. VW said it would produce id.3 in Dresden and Zwickau, the eastern German city. It also said that starting around 2025, the cost of electric vehicles will be reduced to the same level as gasoline and diesel models, which will help VW achieve its profit margin target.