Volkswagen Warns Tariffs Could Weigh On Guidance

By Mauro Orru

Volkswagen said tariffs, political uncertainty and geopolitical tensions could pressure its return on sales, cash flows and liquidity this year.

The German carmaker confirmed its guidance for the year, but said increasing trade restrictions, political uncertainty, geopolitical tensions, growing competition, volatile commodity, energy and foreign-exchange markets, as well as more stringent emissions-related requirements, risked pushing some metrics toward the lower end of its forecasts.

The group is projecting sales growth of up to 5% this year, with an operating return on sales ranging from 5.5% to 5.6%. Net cash flow at its automotive division between 2 billion and 5 billion euros ($2.28 billion - $5.69 billion), while net liquidity in the division is expected to be between 34 billion and 37 billion euros.

"Given the current volatile global economic situation, it is even more important to focus on the levers within our control," finance chief Arno Antlitz said in a statement.

Write to Mauro Orru at mauro.orru@wsj.com