Volkswagen Group posted robust working outcomes in the primary half, enabling necessary investments in future profit pools and new platforms. The Group continued to make nice strategic progress in Q2, registering essential developments throughout its tech-platforms – mobility providers, batteries and software.
“Despite unprecedented global challenges, Volkswagen has demonstrated remarkable financial robustness. The operating margin in the first half of the year reflects the strong product substance and proportionately higher sales in the premium segment. In addition, the volume group has proven that it can deliver good results even in a challenging environment,” stated CFO Arno Antlitz on the event of presenting the quarterly figures.
BEV demand continued to develop quickly in Q2, with the order consumption in Western Europe for H1 2022 40 % above the earlier yr’s degree. Despite provide bottlenecks, a brief cease of manufacturing in Europe and Covid-related lockdowns in China, 118k BEVs had been delivered in Q2 – reflecting a share of whole deliveries of 6 %. In the primary half of the yr, BEV deliveries elevated by 27 % to 217,000 automobiles. Volkswagen added manufacturing capacities for the ID.4 in Emden, Chattanooga and for the ID. Buzz in Hanover in the second quarter to assist the deliberate enhance of world BEV manufacturing in the second half of the yr and past.
Despite world headwinds and provide chain points, the Group demonstrated monetary resilience in Q2. Sales income for the quarter stood at EUR 69.5 billion (3.3 % enhance over 2021). Operating profit earlier than particular gadgets in Q2 got here in at EUR 4.7 billion and included roughly EUR 2.4 billion of destructive truthful worth results from derivatives exterior hedge accounting (primarily from uncooked materials hedging), a reverse impact in comparison with Q1. Before these guide worth losses, the underlying efficiency even improved over a great Q1 2022.
Operating consequence earlier than particular gadgets for H1 totaled EUR 13.2 billion, a 16.1 % enhance on H1 2021. This was pushed by sturdy performances from the Premium and Sport model teams, as nicely as enhancements in the Volume Group which achieved a 5.0 % margin in H1, additional underlining the solidity of Volkswagen’s business. In China, the month-to-month manufacturing run-rate noticeably recovered in direction of the top of Q2, positioning the Group nicely for the rest of the yr as Covid restrictions proceed to ease. The area represents the Group’s second-largest BEV market (29 % of gross sales in H1 and Q2), and the most important development driver re BEV-deliveries, registering a greater than threefold enhance on 2021 with 63,500 BEVs delivered in H1 2022.
The Group continued to prioritize investment in future BEV expertise and software. R&D expenditure elevated to EUR 4.9 billion in Q2 accelerating Volkswagen’s progress in direction of changing into a software-driven mobility supplier.
“The Group’s strong operating profit and financial position enable important investments in future profit pools,” Antlitz stated. “Volkswagen also made important strategic progress in the second quarter and significantly advanced the development of its battery, mobility services and software platforms.”
Advancing Volkswagen as one of many main firms for mobility providers
The acquisition of Europcar represents a big strategic step with which Volkswagen is increasing its mobility providers business, tapping right into a development market with buyer demand anticipated to extend quickly. Future profit pools are very promising. As a consequence, Volkswagen might be enabled to supply entry to all its clients by Europcar’s infrastructure, together with key switch factors in airports, practice stations and metropolis heart places, from which it will possibly increase mobility providers.
Volkswagen is planning to supply its clients with all their mobility wants from a single app, together with trip hailing, trip pooling, automotive sharing, leases and car subscriptions.
New PowerCo paves the best way for battery manufacturing enlargement
The Salzgitter-based PowerCo, which was formally established in July, is bundling world battery actions from uncooked supplies to recycling.
At the identical time, building work began on the corporate’s first personal cell manufacturing unit. This will present a extremely standardized blueprint for Volkswagen’s world roll-out of sustainable cell factories which are designed to safe provide and lower battery prices for Volkswagen Group.
CARIAD launches new software updates
CARIAD made important progress in Q2, increasing its automated driving capabilities and delivering highly effective updates to its clients which offer a considerably improved degree of automation and add new performance such as an computerized lane change with Travel Assist, automated parking and Plug & Charge.
CARIAD additionally signed a number of agreements to safe high-performing {hardware} for the Group’s software platform and additional future-proof the subsequent era of automobiles.
Outlook
Volkswagen Group confirms its outlook for 2022 after a stable first half as provide constraints ease. The provide of wiring harnesses has been managed efficiently and is usually again to regular ranges. The Group expects the product combine to normalize in H2 as the semi-conductor scenario improves in mixture with a robust order guide. A noticeable restoration of the month-to-month gross sales in direction of the top of Q2 moreover bodes nicely for H2 gross sales.
However, it’s nonetheless not attainable to conclusively assess the particular results of the struggle in Ukraine or results of the Covid-19 pandemic on the Volkswagen Group’s business, on the worldwide economy and development in the trade in fiscal yr 2022. In Europe in explicit, there are uncertainties relating to power provide.
“Despite all the caution in the face of the volatile market environment and geopolitical risks, we are confident that we can further accelerate the transformation of the Group,” CFO Antlitz concluded.
