Volkswagen brand increases earnings in 2022 and continues to drive forward e-offensive

Continued sharp focus on cost efficiency

Despite declining deliveries, the brand generated annual sales of EUR 74 billion (prior year*: EUR 68 billion) thanks to an optimized model and pricing policy. Additionally, the brand strengthened its financial base, improving “clean” net cash flow in 2022 to EUR 1,9 billion (EUR 0,3 billion*). The optimization of fixed costs and distribution expenses was among the factors contributing to the good financial result.

Strong earnings contribution from North and South America regions

The strengthening of profitability in the global regions also continues to prove effective. Mayer: “The ongoing positive trend in North and South America bolstered the brand’s annual results.” Volkswagen sees major growth potential in these and other regions. This is thanks to a product portfolio specially tailored to the markets, coupled with local production. The market share in North America and the USA is to be doubled to at least 5 percent by 2030. To this end, Volkswagen plans to invest around EUR 5 billion in e-mobility and digitalization by 2027. A further EUR 1 billion will be invested in South America by 2026 to additionally boost the company’s market share and kick-start the transformation to e-mobility. Initial market tests with ID. models in South America are already underway.

Volkswagen accelerates e-offensive

In 2022, the company increased global sales of all-electric vehicles by 23.6 percent year on year to around 330,000 units. Volkswagen is now further accelerating the transition to e-mobility: By 2030, up to eight out of ten cars sold in Europe are to be battery electric vehicles (BEVs). The BEV share is to grow likewise in North America, with a target of 55 percent by 2030. In addition, Volkswagen will launch ten new BEV models by 2026. Four new electric models are coming soon: The second-generation ID.301 and the sporty ID.3 GTX01, the long-wheelbase ID. Buzz01 and the flagship ID.701. With the ID. 2all02 study in the compact car segment, Volkswagen today provides a hands-on preview of the first electric VW for everyone. The starting price is to be under EUR 25,000. Electric vehicles will then be available in almost every volume segment, and the Volkswagen brand will offer the broadest e-portfolio compared with the competition, from the entry-level BEV to the ID.701 electric sedan.

Volkswagen plants creating greater capacity for e-cars

At the same time, the transformation in production at Volkswagen is progressing apace. To be fully converted to electric vehicles this summer, the Emden plant in Germany will produce the ID.701 in addition to the ID.403. Starting this fall, the new-generation ID.301 will also roll off the assembly line at Wolfsburg. The company is investing around EUR 460 million in the transformation of its main plant by early 2025. Its Zwickau and Dresden plants have meanwhile been fully converted, and production of the ID.403 already started last year in Chattanooga, USA.

High order backlog and launch of efficient internal combustion models in 2023

Alongside the new electric models, other attractive products with highly efficient internal combustion engines will be launched in 2023 in line with customer demand in the individual regions: the new versions of the Atlas04 in North America, the Virtus04 in Brazil, the Tiguan1 and the Passat01. The Volkswagen Passenger Cars brand delivered 4.6 million vehicles worldwide in 2022 (-6.8 percent). Given the difficult supply situation, unit sales fell slightly in the past fiscal year to 2.2 million vehicles (prior year: 2.3 million). The difference between deliveries and unit sales is mainly due to the fact that carmaking joint ventures in China are not included in the Volkswagen Passenger Cars brand.

Demand remains strong both for e-cars and for internal combustion models. Across all powertrains, the order backlog for Europe alone currently exceeds 660,000 vehicles, including almost 100,000 all-electric ID.s. The priority is now on quickly producing the vehicles ordered and delivering them to customers.

Source : Volkswagen

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