Brand Group Core with stable sales revenue and product offensive in first half of 2024 - High fixed costs and one-off effects significantly impact profitability of Volkswagen brand

“The Brand Group Core made progress with its performance programs in the first half of 2024. However, despite all the cost-cutting measures already underway we need to reduce our fixed costs still further in order to stay firmly on course in this difficult market environment.
The additional headwind is clearly evident in our key figures, particularly for the Volkswagen brand: fixed costs have risen in the first half of the year – and could not be offset by vehicle sales or sales revenue. Moreover, provisions for termination agreements at Volkswagen AG also affected earnings. Without special items we would have achieved an operating margin of 6.0% for our Brand Group Core, but we cannot afford to be satisfied with this performance, also bearing in mind that the share of electric vehicles – with their current lower margins – will increase going forward.
It is vital that we continue to do all we can to execute our performance programs – and above all to systematically tap into the synergies between the brands in the Brand Group Core.”

Thomas Schäfer, Member of the Board of Management of Volkswagen AG, Head of the Brand Group Core & CEO of the Volkswagen Passenger Cars brand

“The figures for the Volkswagen brand show very clearly that, even taking the special items into account, our efforts so far to reduce costs are not sufficient. High fixed costs and one-off effects are significantly impacting profitability.
Measures under the performance programs are already underway, but we still have a tough road ahead of us – and must remain consistent in order to secure the financial leeway needed for future investments and jobs on a sustainable basis.”

Patrik Andreas Mayer, Member of the Board of Management of the Volkswagen Brand responsible for “Finance”

Volkswagen Passenger Cars

Volkswagen Passenger Cars delivered 1,518,756 vehicles in the first half of the year, 0.3% down on the comparable prior-year period.
Sales revenue decreased by 1.8% to 42.2 billion euros. The 41.1% decrease in operating profit before special items to 966 million euros is attributable to higher wages, provisions for termination agreements and ramp-up costs. As a result, the operating return for the first half of 2024 decreased to 2.3% (previous year: 3.8%).

SEAT/CUPRA

SEAT/CUPRA reported strong volume growth in the first half of 2024, with vehicle deliveries running at 344,313 units, an increase of 8.5% compared with the same prior-year period. Sales revenue grew 4.6% to 7.8 billion euros. Operating profit before special items grew 9.4% to 406 million euros, and the operating return grew 0.2ppt to 5.2%. These figures confirm the growing popularity of the SEAT/CUPRA model range.