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• Sales Revenue: Increased by 3% in Q1 2025.

• Global Deliveries: Increased to 2.1 million vehicles, up 1.4% year-on-year.

• BEV Deliveries: Reached 217,000 units, representing 10.2% of group deliveries and a 59% year-on-year growth.

• Operating Result: EUR2.9 billion, 37% lower than the previous year, with a margin of 3.7%.

• Special Earnings Effects: Totaled EUR1.1 billion, impacting the margin by 140 basis points.

• Automotive Division Cash Flow: Minus EUR0.8 billion, EUR1.7 billion above the prior year quarter.

• Net Liquidity: EUR33.2 billion at the end of Q1 2025.

• Passenger Cars Operating Result: EUR1.6 billion, about 50% below the prior year period, with a margin of 2.8%.

• Commercial Vehicles Operating Result: EUR0.6 billion, with a margin of 6.2%.

• Financial Services Operating Result: EUR1.1 billion, a 19% increase year-over-year.

• CapEx and R&D Expenditures: Decreased by around 11% to EUR7.7 billion.

• China Joint Ventures Operating Result: EUR272 million, about one-third below the prior year period.

• Order Intake in Western Europe: Increased by 29% year-on-year.

• BEV Order Intake in Western Europe: Increased by 64% compared to the same period last year.

• Warning! GuruFocus has detected 4 Warning Sign with VLKAF.

Release Date: April 30, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Volkswagen AG (VLKAF) reported a 3% increase in sales revenue for Q1 2025, with a significant 30% growth in order intake in Western Europe.

• The company's BEV (Battery Electric Vehicle) share increased to 10%, with Western Europe seeing a more than doubling to 19%.

• Volkswagen AG successfully renewed its revolving credit facility, increasing the amount to EUR12.5 billion from EUR10 billion.

• The company completed the placement of 11 million TRATON shares, increasing the free float to 12.5%.

• Volkswagen AG's operations in South America achieved double-digit growth, particularly strong in Argentina where volumes more than doubled.

Negative Points

• Volkswagen AG's operating result for Q1 2025 was 37% lower than the previous year, with a margin of 3.7%.

• The company faced special earnings effects totaling EUR1.1 billion, including provisions for potential CO2 penalties and restructuring costs.

• BEV sales, while increasing, led to expected margin dilution as BEV margins are still significantly below those of ICE vehicles.

• Global deliveries in China declined by 7%, impacting the overall performance despite growth in other regions.

• The Automotive Division's cash flow was negative at EUR0.8 billion, although this was an improvement from the prior year.