Volkswagen Financial Services Finance Chief Paints Challenging 2023 Outlook - Volkswagen (OTC:VWAGY)

Volkswagen AG VWAGY projected a problematic 2023 for its financial services unit on the back of an economic downturn, higher energy prices, and rising interest rates.
"We see that people are more cautious due to recession expectations, and we are not selling so many cars," said Frank Fiedler, CFO of Volkswagen Financial Services, in Braunschweig, Reuters reports.
He said that rising interest rates may weigh on earnings in the coming year, adding that the Volkswagen unit could not yet make a tangible forecast for its operating profit.
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Volkswagen Financial Services still profited from high prices for used cars and lower credit and residual value risk costs in the current year.
Fiedler expected an operating profit of €5 billion - €5.5 billion. That compares with a previous forecast of about €5 billion and an operating profit of €5.7 billion in 2021.
Volkswagen resumed production in China after a pause during the recent COVID-related lockdowns.
The automaker resumed operations in its Joint Venture plant in Chengdu and its factory in Changchun.
Price Action: VWAGY shares traded lower by 0.96% at $18.66 on the last check Thursday.