2023-10-26 17:10:21
“We cannot be satisfied with our profitability,” said Arno Antlitz, the chief financial officer of the Volkswagen Group – Europe’s largest vehicle producer. Despite its turnover of 78,845 million euros so far this year, an increase of 11.6% compared to 2022, the net profit was 4,347 million euros.
Although the result was more than double that of the previous year, the consortium lowered its profitability forecasts for 2023, which disappointed investors. This translated into a drop in the valuation of its shares of more than 9% in the last month..
The Volkswagen Group’s objectives include achieving margins of over 10% – cumulatively, operating profitability amounts to 6.2% – but those of the generalist brands have suffered, due to the increase in costs.
An example is that of the Volkswagen brand, the manufacturer’s largest volume – it delivered 2.2 million vehicles, about 400,000 more than a year ago – whose margins were reduced to 3.7% compared to 4.2%. of 2022.
The segment that the Volkswagen Group calls Core Brands includes all the volume emblems: Volkswagen, Skoda, Seat (which includes Cupra) and VW Commercial Vehicles. Together, they delivered 3.5 million units (+20.9%), invoiced 101,060 million (+24.2%) and achieved an operating profit of 4,985 million (+34%).
The Progressive segment, which includes Audi, Lamborghini, Bentley and Ducati, achieved operating margins of 9.1%, with an operating result of 4.6 billion (a decline of 23.3%) and a turnover of 50 billion (+13%). ).
Porsche remains the jewel in the crown, and makes up its own category (Sport Luxury). The sports car brand achieved operating margins of 18.8% thanks to its 250,000 sales (about 30,000 more), a turnover of 27,785 million (+13.3%) and an operating profit of 5,232 million (+10.2%).
Cariad, the software division on which the previous CEO opted, Herbert Diesscontinues to record negative numbers, with operating losses of 1.7 billion euros.
Given these results, the current CEO, Oliver Blume, will implement a performance plan in the coming weeks. Potential cost-saving measures “will be identified and implemented quickly,” Volkswagen said.
Consumer confidence is suffering even in the most resilient segments, such as premium brands. In the presentation of Porsche results, Blume – also CEO of this brand – stated that higher interest rates had had a negative influence.
Looking at the end of the year, the consortium expects that between 9 and 9.5 million vehicles will be delivered, with a turnover around 10% higher than what it registered in 2022 (279.2 billion euros) and an operating result of line with that exercise, a consequence of the uncertainty in raw materials.
On the other hand, Volkswagen, a brand that had enjoyed great popularity in China, is seeing its market share in the country reduced. Last July it announced that it would join the manufacturer Xpeng to produce vehicles with the German emblem but Chinese technology.
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