VW Sees Flagging Cash Flow Amid China Struggles

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CEO Oliver Blume is pushing to make VW, Europe’s largest automaker, leaner with several cost-cutting programs in a value-over-volume strategy. Photo: Bloomberg

(Bloomberg) — Volkswagen AG is working to bolster its cash position after higher logistics costs and intensifying competition in China weighed on the German carmaker’s second-quarter earnings.

VW slightly lowered its projection for vehicle deliveries for the year. The company’s net cash position slumped 72% in the three months through June.

“The focus for the second half is now on strengthening net cash flow,” chief financial officer Arno Antlitz said Thursday, adding that he expects cost-cutting programs at the carmaker’s various brands to improve the situation.