(Reuters) – Traton, the Volkswagen utility subsidiary, said on Monday expect a gloomy market in its segment in 2025 after the persistent weakness of Europe, in particular Germany, weighed on its results last year.
“We expect the world economy to lose a little of its momentum in 2025,” said the group in a statement, adding that it would continue to focus on efficiency measures this year.
The truck manufacturer provides for sales evolution in 2025 between -5% and +5% and an operational sales return between 7.5% and 8.5%, subject to geopolitical developments, especially in the United States.
The operating yield adjusted on sales, the main traton profitability indicator, reached 9.2% in 2024, exceeding both the 2023 level and the group’s forecasts, mainly, thanks to efficiency gains, even though vehicle sales fell.
Annual sales and adjusted operating profit remained stable at 47.47 billion euros and 4.38 billion euros, respectively.
European truck manufacturers experienced difficulties last year due to the drop in orders, after a peak in sales in 2023 linked to post-Pandemic repressed demand.
Traton results come from Volkswagen, his parent company, undergoes a large restructuring with thousands of job cuts in Germany, due to the drop in European demand, growing competition from China and uncertainties related to the transition to electric vehicles.
(Written by Andrey Sychev and Amir Orusov, Elena Smirnova, edited by Kate Entringer)
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