Volkswagen’s Brand Group Core Demonstrates Resilience and Growth in Q1 2024

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In the first quarter of 2024, Volkswagen’s Brand Group Core showcased a notable performance by achieving a 21% increase in operating profit, reaching 2.1 billion euros. Despite a slight dip in sales revenue, which settled at 32.8 billion euros, the core group managed an enhanced operating return of 6.4%. This improvement is attributed to rigorous…

In the first quarter of 2024, Volkswagen’s Brand Group Core showcased a notable performance by achieving a 21% increase in operating profit, reaching 2.1 billion euros. Despite a slight dip in sales revenue, which settled at 32.8 billion euros, the core group managed an enhanced operating return of 6.4%. This improvement is attributed to rigorous cost management and effective cross-brand synergies.

Thomas Schäfer, a key executive at Volkswagen, highlighted the group’s resilience and competitive edge in a challenging environment, emphasizing their commitment to reducing costs and maximizing synergies. The core group, Schäfer noted, is strategically positioned for the ongoing year, focusing on delivering cutting-edge technology at competitive prices.

Vehicle sales remained robust, with 1,543,500 units delivered in this quarter, marking a 6.2% increase from the previous year. Electric vehicles, particularly models like ID.4, ID.3, and Škoda Enyaq, played a significant role in these figures. Despite the cessation of certain government incentives in Germany, the group effectively managed its financials, balancing the impact of higher depreciation linked to new electric products and campaigns.

Key financial metrics further reveal the group’s strengths: a slight year-on-year decrease in sales revenue did not deter a substantial rise in operating profit and a solid operating return, squarely within the target range of 6-7% for 2024.

On a brand level, Volkswagen Passenger Cars, Škoda, SEAT/CUPRA, and Volkswagen Commercial Vehicles all contributed positively. Noteworthy performances include a significant profit increase at Volkswagen despite lower vehicle sales, and impressive gains at SEAT/CUPRA and Volkswagen Commercial Vehicles, where operating profits and returns notably exceeded expectations.

Looking forward, Volkswagen’s Brand Group Core remains focused on enhancing its financial robustness and market presence. The group is well-prepared to navigate the challenges of a competitive and politically charged market environment, with plans to launch several key models, including the all-electric Volkswagen ID.7 Tourer and the CUPRA Tavascan.

Overall, Volkswagen’s Brand Group Core’s Q1 results reflect a strong start to 2024, underpinned by strategic initiatives aimed at improving efficiency, reducing costs, and leveraging synergies across its brand portfolio.


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