Brand Group Core improves result and return in 2023 – closer cooperation between the volume brands is gaining traction

Brand Group Core Boosts Performance in 2023 with Enhanced Cooperation Among Volume Brands

In the fiscal year 2023, the Brand Group Core, comprising Volkswagen, Škoda, SEAT/CUPRA, and Volkswagen Commercial Vehicles, showcased a remarkable performance, contributing positively to the overall success of the Volkswagen Group. The close collaboration among these volume brands led to significant advancements in various key metrics.

Volkswagen: Strengthening Resilience and Competitiveness

Unit Sales: Volkswagen brand witnessed a 13% growth, reaching 2,519 million vehicles in 2023.
Sales Revenue: Sales revenue surged to 86.4 billion euros, driven by the license business with China and strong after-sales performance.
Operating Profit: The brand’s operating profit before special items reached 3.5 billion euros, emphasizing efficiency and profitability.
Outlook: Volkswagen aims to stabilize its return on sales trajectory from 2024 onwards, setting the stage for improved resilience in a competitive market.

Škoda Auto: Embracing E-Mobility Transformation

Unit Sales: Škoda Auto reported a substantial increase of 18.5%, totaling 866,800 vehicles sold.
Operating Profit: The brand achieved an operating profit before special items of 1.8 billion euros, reflecting a robust business model for e-mobility transformation.

SEAT/CUPRA and Volkswagen Commercial Vehicles: Impressive Growth Trajectory

SEAT/CUPRA: Demonstrated a noteworthy 28% rise in unit sales, revenue growth, and enhanced profitability.
Volkswagen Commercial Vehicles: Attained positive business development with a significant increase in unit sales and operating profit.

Partnerships and Future Prospects

The Brand Group Core targets an operating return of 8% by 2026 through enhanced cooperation and performance programs.
Synergy and scale effects among sister brands are expected to drive sustainable growth and cost optimization.
Focus on volume growth, market expansions, and strategic investments will shape future success.

Conclusion

The success of the Brand Group Core in 2023 underscores the value of collaboration and strategic focus on efficiency and innovation. With a strong foundation and a forward-looking approach, the brands within the group are poised for continued growth and profitability in the dynamic automotive landscape.

FAQs

1. How did Volkswagen brand improve its operating profit in 2023?

Volkswagen focused on efficiency and profitability, leading to a 3.5 billion euros operating profit before special items, a significant increase from the previous year.

2. What were the key factors behind Škoda Auto’s successful 2023 performance?

Škoda Auto’s success in 2023 was driven by a robust business model for e-mobility transformation, reflected in record unit sales and operating profit.

3. How did SEAT/CUPRA and Volkswagen Commercial Vehicles demonstrate growth in 2023?

SEAT/CUPRA and Volkswagen Commercial Vehicles showcased impressive growth in unit sales, revenue, and operating profit, highlighting their positive business trajectories.

4. What are the future prospects for the Brand Group Core?

The Brand Group Core aims to achieve an operating return of 8% by 2026 through enhanced cooperation, synergy among sister brands, and strategic investments for sustainable growth.