In This Article:
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Group Revenue: EUR325 billion.
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Operating Profit: EUR19.5 billion.
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Operating Margin: 5.9%.
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Net Income: EUR12.4 billion, a 31% decrease year-on-year.
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Dividend Proposal: EUR6.36 per preference share, 30% payout ratio.
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Vehicle Deliveries: 9 million units, 3% decrease from the previous year.
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Battery Electric Vehicle Deliveries: 745,000 units, 3% decrease from 2023.
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Net Cash Flow (Automotive Division): EUR5 billion.
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Net Liquidity (Automotive Division): EUR36.1 billion.
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Passenger Cars Operating Result: EUR11.4 billion, margin of 5.3%.
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Heavy Commercial Vehicles Operating Result: EUR4.2 billion, margin of 9.1%.
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Financial Services Operating Result: EUR3.1 billion, an 18% decline.
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CapEx and R&D Expenditure: EUR37.9 billion, 14.3% of sales revenue.
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Incoming Orders (Western Europe): Increased by 128,000 units in Q4, total of 800,000 units.
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Order Backlog (Europe): 850,000 units at the end of December.
Release Date: March 11, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Volkswagen AG (VLKAF) launched over 30 new models in 2024, enhancing brand identity and product quality.
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The company maintained a strong position in China, earning profits from its combustion engine business.
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Volkswagen AG (VLKAF) achieved significant milestones in its global software strategy, partnering with XPENG and Rivian.
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The company reported a solid financial performance with EUR325 billion in group revenue and EUR19.5 billion in operating profits.
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Volkswagen AG (VLKAF) maintained its market leadership in Europe for both combustion engines and electric vehicles.
Negative Points
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Volkswagen AG (VLKAF) faced weak demand in Europe and fierce price competition, particularly in China.
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Operating profit fell by 15% to EUR19.1 billion, with a corresponding operating margin of 5.9%.
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The company experienced a decline in vehicle sales in China by 10%, impacting market share.
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Volkswagen AG (VLKAF) faced significant restructuring expenses totaling about EUR3 billion.
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The company anticipates a weaker Q1 in terms of margin and cash flow due to increased BEV mix and ramp-up costs.
Q & A Highlights
Q: Ollie, as you enter your third year as CEO, what are your main priorities moving forward, and how do you plan to ensure effective execution, particularly on cost management? A: Oliver Blume, Chairman of the Management Board, emphasized that Volkswagen has made significant progress in restructuring and product strategy over the past two years. The focus now is on accelerating execution, particularly in cost management. Blume highlighted the importance of having a clear plan and maintaining a strong team to ensure progress and address any challenges promptly.