Volkswagen improves profitability and economic efficiency in a difficult environment
“We have further improved our economic efficiency in a difficult environment. This underlines that Volkswagen has chosen the right path to sustainably improve its competitiveness and profitability with the ACCELERATE strategy. We have therefore laid a very solid foundation for the accelerated transformation towards zero-carbon and fully networked mobility,” said Volkswagen CEO Ralf Brandstätter.
Continued focus on profitability – outlook for 2023 confirmed
Volkswagen continues to work hard to improve its profitability – for example by further reducing its fixed costs and overheads – in order to strengthen its long-term competitiveness. “We are currently facing different challenges such as geopolitical uncertainty, rising commodity and energy prices and the effects of the pandemic in China. We are working to counter these risks through our cost reduction measures and by improving the quality of our operating result in specific areas. However, we are sticking to our target of an operating return on sales of 6% in 2023,” said Volkswagen Chief Financial Officer Alexander Seitz. This forecast depends on the evolution of the war in Ukraine and in particular on its impact on the global economy and therefore on the commercial activities of the Volkswagen brand.Customer demand remains high for ICE and electric models.
Further strong increase in unit sales of 100% electric models
53,400 all-electric vehicles (VEB) were delivered in the first three months (+74%). The all-electric ID.41 plays a key role in this regard. More than one in two electric vehicles delivered was an ID.4, of which 30,300 units were handed over to customers. Volkswagen is now continuing to expand the production capacity of its best-selling electric car. On May 20, 2022, the Emden plant will start series production of the ID.4, creating additional capacity for the successful model. The ID.4 will also roll off the production line in Chattanooga, USA in the second half of the year. Models of the entire ID. continues to benefit from strong demand, with more than 120,000 customer orders placed for the ID. models in Europe alone.
The order book for all drive types reached a historic high of over 670,000 vehicles in Europe alone. The Group is therefore striving to reduce delivery times for customers as much as possible and to quickly process the large order book.