Volkswagen Group he is convinced that the future of mobility is electric. However, while in some countries the growth of electromobility is very significant, in other regions it is less rapid than expected. For this reason the German group will accept flexible strategy.
Thus, while huge investments are being made in the expansion of electric mobility, in a transitional phase, increasingly efficient internal combustion engine models will continue to be part of the model range. They will be joined in many markets by new and improved hybrid versions. This is exactly what became clear during the presentation of the German automobile concern’s performance results for 2023.
The Volkswagen Group says it intends to continue to strictly follow strategic investment planning to further improve competitiveness, expand its activities in the most attractive emerging markets and strengthen its entire product range. At the same time, by making greater use of synergies within the group, investments envisaged in the five-year plan for 2025-2029 could be limited to €170 billion.
In particular, investments will mainly focus on new products, regional strengthening, battery business, 100% electric vehicle platforms and models with modern and increasingly electrified internal combustion engines. Investment is expected to peak in 2024 and then reach the target level (11% of turnover) by 2027.
In addition, the German company is implementing the largest profit program in its history and aims for a sustainable impact of more than 10 billion euros across the group by the end of 2024. This will allow it to mitigate negative factors such as inflation and economic growth. increase in costs. The company places special emphasis on measures to increase productivity and reduce costs by optimizing material and product costs, reducing fixed and production costs and increasing profits, both in sales and after-sales services.
Performance programs, Volkswagen explains, offer a triple opportunity: not only to improve the group’s competitiveness and efficiency, but also to free up financial resources to invest in products and new businesses to better meet the needs of customers around the world in the long term. period. They also help secure jobs and jobs in the long term.
2024 this will be a very important year because More than 30 products are planned to be launched. (between cars already presented and others on the way). The group also plans to further invest in its battery business and strengthen the region.
The press release mentions models such as Golf, Tiguan, Passat, Octavia and Superb. Also mentioned are the Porsche Macan Electric and Audi Q6 e-tron based on the PPE platform, as well as the Volkswagen ID.7 and ID.7 Tourer, CUPRA Tavascan and Volkswagen ID. Long wheelbase Buzz based on MEB.
With this expansion of the range, Volkswagen expects that orders in Western Europe will increase in the coming months, compared to the previous year. It’s really also for 100% electric vehicles are already available, for which the Volkswagen Group recorded a clearly positive trend at the beginning of the year compared to the corresponding period in 2023.
The main results for 2023 were expected at the beginning of March. Deliveries increased 12 percent to 9.24 million vehicles, with all regions contributing to the growth. The group achieved a turnover of 322.3 billion euros, an operating profit of 22.6 billion euros and a profit after tax of 17.9 billion euros. Operating return on sales before extraordinary expenses was 7.0%.
Operating profit reached 25.8 billion euros, corresponding to a profit margin of 8%. The automotive division’s net cash flow rose to 10.7 billion euros. Cash liquidity amounts to 40.3 billion euros.
The Board of Directors and the Supervisory Board will propose to the General Assembly a dividend payment of €9 per ordinary share and €9.06 per preference share, an increase of €0.30 for both shares compared to the previous year.
Source: HD Motori
Ashley Fitzgerald is an accomplished journalist in the field of technology. She currently works as a writer at 24 news breaker. With a deep understanding of the latest technology developments, Ashley’s writing provides readers with insightful analysis and unique perspectives on the industry.