Volkswagen boosts earnings in 2022 with ongoing e-offensive

Volkswagen accelerates e-offensive

In 2022, the company increased global sales of all-electric vehicles by 23.6 percent year on year to around 330,000 units. Volkswagen is now further accelerating the transition to e-mobility: By 2030, up to eight out of ten cars sold in Europe are to be battery electric vehicles (BEVs). The BEV share is to grow likewise in North America, with a target of 55 percent by 2030. In addition, Volkswagen will launch ten new BEV models by 2026. Four new electric models are coming soon: The second-generation ID.3 ^{and the sporty ID.3 GTX, the long-wheelbase ID. Buzz and the flagship ID.7. With the ID. 2all study in the compact car segment, Volkswagen today provides a hands-on preview of the first electric VW for everyone. The starting price is to be under EUR 25,000. Electric vehicles will then be available in almost every volume segment, and the Volkswagen brand will offer the broadest e-portfolio compared with the competition, from the entry-level BEV to the ID.7 electric sedan.}

Volkswagen plants creating greater capacity for e-cars

At the same time, the transformation in production at Volkswagen is progressing apace. To be fully converted to electric vehicles this summer, the Emden plant in Germany will produce the ID.7 ^{in addition to the ID.4. Starting this fall, the new-generation ID.3 will also roll off the assembly line at Wolfsburg. The company is investing around EUR 460 million in the transformation of its main plant by early 2025. Its Zwickau and Dresden plants have meanwhile been fully converted, and production of the ID.4 already started last year in Chattanooga, USA.}

High order backlog and launch of efficient internal combustion models in 2023

Alongside the new electric models, other attractive products with highly efficient internal combustion engines will be launched in 2023 in line with customer demand in the individual regions: the new versions of the Atlas ^{in North America, the Virtus in Brazil, the Tiguan1 and the Passat. The Volkswagen Passenger Cars brand delivered 4.6 million vehicles worldwide in 2022 (-6.8 percent). Given the difficult supply situation, unit sales fell slightly in the past fiscal year to 2.2 million vehicles (prior year: 2.3 million). The difference between deliveries and unit sales is mainly due to the fact that carmaking joint ventures in China are not included in the Volkswagen Passenger Cars brand.}

Demand remains strong both for e-cars and for internal combustion models. Across all powertrains, the order backlog for Europe alone currently exceeds 660,000 vehicles, including almost 100,000 all-electric ID.s. The priority is now on quickly producing the vehicles ordered and delivering them to customers.

Financial figures Volkswagen Passenger Cars

* Structural changes as a result of separating out VW Group Components have led to changes in prior-year figures

Outlook

Volkswagen projects a further significant increase in deliveries of all-electric vehicles in the current fiscal year. CFO Patrik Andreas Mayer: “We are cautiously optimistic that the supply situation will stabilize in the course of the year and are working resolutely on our cost position.” However, Mayer continued, it is anticipated that the current year will see a continuation of the highly challenging environment with regard to supply, commodity and energy prices as well as the geopolitical situation. Due to economic uncertainties and increasing cost pressure, the Volkswagen brand has revised its guidance for 2023 and now expects an operating return before special items of over 4 percent.

Volkswagen’s product pipeline is well filled, as emphasized by Volkswagen CEO Thomas Schäfer: “Customers can look forward to a full lineup of VWs.” Even though 2023 looks set to remain challenging, Schäfer said, “we will not be deterred, but continue to systematically implement our plans for the VW brand and the Volume brand group.”