“In the initial six months of the year, Volkswagen Group demonstrated a strong performance. Amidst a demanding atmosphere, the year 2024 represents a significant product offensive by the Group and a comprehensive restructuring of our business sectors. The outcomes are indicative of a successful collective effort across all brands. Our strategic direction has been firmly established, with notable progress evident in the TOP 10 initiatives. There is an acceleration in our global software strategy through partnerships on an international scale, and a complete realignment of our operations in China. The performance initiatives are gaining momentum across the Group, and our new product offerings are being well-received in international markets. This provides a solid foundation. However, there is still much work that lies ahead of us.”
Oliver Blume, CEO, Volkswagen Group
Key Points
| Sales revenue of EUR 158.8 billion achieved in H1 2024, showing an increase compared to
H1 2023 (EUR 156.3 billion) |
The rise in Volkswagen Group’s sales revenue was driven by robust growth in Financial Services. While sales revenue in the automotive sector remained relatively steady, there was a slight decrease in global vehicle sales. |
| Operating Result of EUR 10.1 billion in H1 2024, reflecting an 11% decrease from
H1 2023 (EUR 11.3 billion); Operating Margin stood at 6.3% |
The decline in Operating Result can be attributed to various non-operational factors, particularly unforeseen provisions for the Volkswagen AG’s severance program. Additionally, the Operating Margin was impacted by higher fixed costs, charges related to the deconsolidation of VW Bank Russia, and the closure of part of MAN Energy Solutions’ gas turbine business. |
| Encouraging underlying result in H1 2024, with improved margin from Q1 to Q2 | When adjusted for non-operating influences and excluding fair value of derivatives beyond hedge accounting, the comparable Operating Margin for H1 2024 was 7.1%. There was a 7.6% improvement in the underlying margin in Q2 2024, compared to a 6.6% underlying margin in Q1 2024. |
| Negative net cash flow of EUR -0.1 billion in the Automotive division in H1 2024 (compared to EUR 2.5 billion) | The Automotive net cash flow was impacted by an increase in working capital attributable to the model ramp-up and supply limitations. A robust net cash flow of EUR 2.9 billion was observed in Q2, nearly offsetting the outflow of EUR 3.0 billion in Q1 2024. |
| 4.3 million vehicle sales in H1 2024, slightly lower than
H1 2023 (4.4 million vehicles) |
The growth in North America (+8%) and South America (+15%) almost compensated for the decline in other regions, notably China during Q2. |
| Order intake for vehicles in Western Europe slightly increased in H1 2024 | Overall order intake within the home region rose by 2%, largely driven by the surge in all-electric vehicle orders (+124%). The current order book extends well into the fourth quarter. |
Confirmation of 2024 Outlook
Volkswagen Group anticipates a sales revenue increase of up to 5% in 2024 compared to the previous year. The expected operating return on sales for both the Volkswagen Group and the Passenger Cars Business Area falls within a range of 6.5% to 7%.
Regarding the Automotive Division, the Group foresees an investment ratio between 13.5% and 14.5% in 2024. The estimated automotive net cash flow for 2024 ranges from EUR 2.5 billion to EUR 4.5 billion. This projection includes investments for future ventures and financial outflows related to mergers and acquisitions, which constitute a crucial aspect of the Volkswagen Group’s transformation. The net liquidity in the Automotive Division for 2024 is projected to be between EUR 37 billion and EUR 39 billion. The Group’s objective remains unchanged, emphasizing the continuation of a robust financing and liquidity strategy.
Additional details on the brand groups
Core
Sales revenue remains steady compared to the previous year; Operating Margin marginally reduced to 5.0%, attributed to restructuring costs. The underlying Operating Margin, excluding restructuring expenses, stood at 6.0%.
H1 Results Core on Aug. 2, 2024
Progressive
A notable decline in sales revenue primarily due to supply limitations at Audi; Operating Margin decreased to 6.4%, with the Operating Margin before valuation effects at 7.7%.
H1 Results Progressive on Jul. 25, 2024
Sport Luxury
A decrease in sales revenue influenced by anticipated operational challenges; Operating Margin fell to 16.4% due to expenses related to the model ramp-up.
H1 Results Porsche on Jul. 24, 2024
TRATON Trucks
Slight growth in sales revenue and strong profitability; sustained high demand for vehicle services; Operating Margin recorded at 9.0%.
H1 Results TRATON on Jul. 26, 2024
CARIAD
CARIAD observed an increase in sales revenue driven by a significant rise in software license sales. Operating Result aligned with the previous year’s performance.
Group Mobility
Financial Services reported an Operating Result of EUR 1.4 billion, representing a year-over-year decline of 22%, attributed to the exclusion of the Russian business.
H1 Results VW Group Mobility on Aug. 9, 2024
Key Metrics Volkswagen Group
| Volume Data1 in thousands | ||||||||||||
| Deliveries to customers (units) | 2,244 | 2,331 | -3.8 | 4,348 | 4,372 | -0.6 | ||||||
| Vehicle sales (units) | 2,260 | 2,324 | -2.8 | 4,341 | 4,448 | -2.4 | ||||||
| Production (units) | 2,340 | 2,418 | -3.2 | 4,606 | 4,691 | -1.8 | ||||||
| Employees(on June 30, 2024/Dec. 31,
2023) |
682.8 |
684.0 |
-0.2 |
|||||||||
| Financial Records (IFRS), € million | ||||||||||||
| Revenue from sales | 83,339 | 80,059 | +4.1 | 158,800 | 156,257 | +1.6 | ||||||
| Operating outcome | 5,464 | 5,600 | -2.4 | 10,052 | 11,347 | -11.4 | ||||||
| Operating profit margin (%) | 6.6 | 7.0 | 6.3 | 7.3 | ||||||||
| Earnings prior to tax | 4,986 | 5,446 | -8.4 | 10,167 | 11,898 | -14.6 | ||||||
| Profit margin before tax (%) | 6.0 | 6.8 | 6.4 | 7.6 | ||||||||
| Earnings post-tax | 3,631 | 3,791 | -4.2 | 7,341 | 8,521 | -13.9 | ||||||
| Automotive Section2 | ||||||||||||
| Cash inflows from operations | 8,396 | 6,161 | +36.3 | 10,925 | 13,373 | -20.5 | ||||||
| Cash inflows from investment activities related to operational activities3 |
5,499 |
5,936 |
-7.4 |
11,054 |
11,267 |
-1.9 |
||||||
| Net cash | 2,898 | 226 | – | -129 | 2,470 | – | ||||||
| Net assets at June 30/Dec. 31 | 31,314 | 40,289 | -22.3 | |||||||||
| Investment rate | 12.5 | 12.4 | 13.4 | 12.1 |
1) The numbers also contain the equity-accounted Chinese joint ventures. Previous-year deliveries have been adjusted to show subsequent statistical patterns.
2) Including the distribution of consolidation adjustments between the Automotive and Financial Services divisions.
3) Excluding the acquisition and divestiture of equity investments: Q2 EUR 5,393 (5,700) million, January to June EUR 10,743 (10,654) million.
Essential figures by brand group and business sector from January 1 to June 30
| Vehicle sales | Sales revenue | Operating outcome | Operating margin | |||||||||||||
| Thousand vehicles/€ million | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | ||||||||
| Core brand group | 2,494 | 2,450 | 69,051 | 68,764 | 3,462 | 3,773 | 5.0 | 5.5 | ||||||||
| Progressive brand group | 539 | 655 | 30,939 | 34,169 | 1,982 | 3,417 | 6.4 | 10.0 | ||||||||
| Sport Luxury brand group1 | 152 | 171 | 17,695 | 18,892 | 2,904 | 3,653 | 16.4 | 19.3 | ||||||||
| CARIAD | – | – | 426 | 329 | -1,182 | -1,088 | ||||||||||
| Cell | – | – | 0 | 0 | -166 | -181 | ||||||||||
| TRATON Commercial Automobiles | 161 | 168 | 22,738 | 22,331 | 2,050 | 1,798 | 9.0 | 8.1 | ||||||||
| MAN Energy Solutions | – | – | 1,998 | 1,875 | 124 | 208 | ||||||||||
| Equity-partnered institutions in China2 | 1,265 | 1,352 | – | – | – | – | ||||||||||
| Volkswagen Group Mobility | – | – | 27,514 | 24,112 | 1,373 | 1,760 | ||||||||||
| Others3 | -269 | -349 | -11,561 | -14,215 | -495 | -1,993 | ||||||||||
| Volkswagen Consortium | 4,341 | 4,448 | 158,800 | 156,257 | 10,052 | 11,347 | 6.3 | 7.3 | ||||||||
1) Including Porsche Financial Services: revenue from sales EUR 19,457 (20,431) million, operational profit EUR 3,061 (3,852) million.
2) The sales and profits of joint venture companies in China are not part of the overall figures; their share of the profits generated amounted to EUR 801 (1,152) million.
3) The operational profit includes primarily internal transactions accounted for in earnings, particularly the elimination of intercompany profits; it also covers depreciation and amortization of identifiable assets as part of the purchase price allocation, as well as entities not assigned to specific brands.
REFERENCE: Volkswagen Group
