From commercial vehicles to sports cars, the Volkswagen AG is a transportation giant and a world leader in car manufacturing. This multinational corporation owns an impressive array of brands, from the classic Volkswagen itself to luxury marques like Audi and Porsche. They also produce motorcycles through Ducati and have a dedicated commercial vehicle division.
Headquartered in Wolfsburg, Germany, the Volkswagen Group operates 114 production facilities across 19 European countries and 10 countries in the Americas, Asia, and Africa. Its global presence enables it to meet diverse market needs and advance innovative, sustainable mobility technologies. The automaker is divided into three brand groups: Core, Progressive, and Sport Luxury. Each operates independently for shared success, and each brand refines its global positioning and strategy while leveraging synergies within the Group.
Disclaimer: The brands may not be limited to the logos on the image and may change. The use of logos is for educational purposes only.
In addition to its core brands, the Volkswagen Group relies on subsidiaries and strategic partners in heavy commercial vehicles, engineering, software, financial services, and mobility solutions to drive its transformation into a technology group. Notably, electrification advanced significantly last year, with battery-electric vehicles (BEVs) reaching a record 8.3% of total deliveries. In the fourth quarter of 2023 alone, BEVs accounted for 10%. Volkswagen Group delivered 771,100 BEVs, a 35% increase from 2022, solidifying its leading position in Europe.
The Group is building battery factories to meet the demand for electric vehicles. PowerCo, Volkswagen Group’s battery company, has chosen sites in Germany, Spain, and Canada.
Financials and dividends
The Brand Group Core delivered strong financial results in Q1 2024, with stable vehicle sales and slightly lower revenue. Operating profit increased by 21% to €2.1 billion, and the operating return was 6.4%, within the target range. Despite challenges such as the end of government incentives for electric cars in Germany, all brands contributed to higher returns through cost management and synergy measures. Unit sales were nearly unchanged at 1,191,926, and sales revenue was €32.8 billion, slightly down from €33.2 billion in Q1 2023.
According to the CEO, “The solid first-quarter results, despite the difficult environment, demonstrate that the Brand Group Core is resilient and is becoming increasingly competitive. We are very consistently reducing our costs and are working together more intensively to really tap into synergy potentials.”
In 2023, Volkswagen Group achieved robust results despite challenges, with a 12% increase in deliveries to 9.24 million vehicles. The Group reported EUR 322.3 billion in sales revenue, EUR 22.6 billion in operating profit, and EUR 17.9 billion in profit after tax, demonstrating its business model's resilience. Volkswagen AG pays dividends annually. This year's dividend will be paid later in June, and the last date to trade to qualify for the payout is in May 2024.
New products and investments
In fiscal year 2023, the Progressive Brand Group delivered 1,918,912 cars (up from 1,638,638 in 2022) and 58,224 motorbikes (down from 61,562 in 2022). The Audi brand saw a 17.4% increase in car deliveries, reaching 1,895,240 due to high demand and improved supply. Audi plans to strengthen its portfolio with over 20 new models in the next two years. Performance Program 14 will further boost Audi. The company expects 2024 revenue of €63-68 billion, an 8-10% operating margin, and a net cash flow of €2.5-3.5 billion.
This year, the sports car manufacturer Porsche AG is renewing four of its six model lines. The first quarter featured the launch of the new Panamera and Taycan models, alongside significant investments in digitalisation and R&D (research and development).
Earnings
Volkswagen Group is expected to release its second-quarter (Q2) results in July 2024.