Wizz Air sets 2030 targets: 10 billion euros revenue, 10% EBIT margin
Volvo Car’s chief commercial officer Erik Severinson said Chinese automakers pose an existential threat to some European carmakers but not to the industry as a whole, in remarks published Friday by Dow Jones Newswires. The comments appeared in The Wall Street Journal’s intraday Market Talk roundup of auto and transport-sector developments distributed by Dow Jones Newswires.
“Right now it is very difficult to compete in that market for everyone,” Severinson said of China. Sales of premium cars made by Western companies are under pressure in China, while local players are fighting a price war to drive volumes, he said. Volvo is betting that new models with self-driving and infotainment systems, as well as differentiated interior designs, will make its cars more relevant to Chinese consumers, Severinson said.
Severinson drew a distinction between the industry’s prospects and those of individual competitors. “I don’t think it’s an existential threat to the automotive industry,” he said. “But of course it is an existential threat to companies within that industry.” The arrival of Chinese automakers will lead to a deterioration in profit margins for many brands in Europe, according to Severinson, but the car industry has always been competitive, and its history is filled with examples of companies that have gone out of business due to new competition. Volvo Car shares closed 0.1% higher on Friday.
In a separate item from the same Market Talk roundup, Wizz Air released 2030 financial targets ahead of its investor day, aiming for 10 billion euros in revenue and a 10% EBIT margin — both higher than the Bloomberg consensus, according to J.P. Morgan equity research director Harry Gowers. “These targets look ambitious versus Wizz’s profitability postpandemic, but we also view them as achievable if the company can execute within a broadly stable environment,” Gowers wrote. J.P. Morgan carries a neutral rating on the stock with a 12.00-pound price target. Wizz Air shares rose 3.8% to 988.50 pence on Friday, though they remain down 22% year to date.