Volkswagen Group with solid performance in a demanding environment for the first half of 2024
“The Volkswagen Group delivered a solid performance in the first half of the year. In a demanding environment, 2024 marks the Group’s largest product offensive and a comprehensive restructuring of our business areas. The results reflect a successful team effort across all brands. Strategically, we have set a decisive course and the TOP 10 programs are making good headway. We are accelerating our global software strategy with international partners and have completely realigned our set-up in China. The performance programs are picking up speed across the Group and our new products are receiving positive feedback from global markets. This is a good basis. However, much of the work still lies ahead of us.”
“Our second quarter margin, before restructuring costs and other non-operational factors, came in slightly above our expectations. But what ultimately counts is the reported result. A margin of 6.3% after six months is below our ambitions and potential, given our array of great vehicles, our brand portfolio, and our global footprint. Given the expected product momentum and a solid order book, we confirm our outlook for the full year. However, we must make significant efforts on the cost side in the second half and beyond in order to achieve our targets.”
Outlook for 2024 Confirmed
The Volkswagen Group expects the sales revenue to exceed the previous year’s figure by up to 5% in 2024. The operating return on sales for the Volkswagen Group and the Passenger Cars Business Area is likely to be between 6.5% and 7%.
In the Automotive Division, the Group assumes an investment ratio of between 13.5% and 14.5% in 2024. The automotive net cash flow in 2024 is expected to be between EUR 2.5 billion and EUR 4.5 billion. This will include in particular investments for the future and cash outflows from mergers and acquisitions, which are a vital pillar of the Volkswagen Group’s transformation. Net liquidity in the Automotive Division in 2024 is expected to be between EUR 37 billion and EUR 39 billion. The Group’s goal remains unchanged, namely, to continue with our robust financing and liquidity policy.
