The Volkswagen brand further strengthened the Group’s economic efficiency in the first half of 2022. Effective sales management, improved cost efficiency and consistent implementation of the ACCELERATE strategy led to a strong financial result. Operating profit before exceptional items increased to EUR 1.9 billion (H1 2021: EUR 1.2 billion). Operating return on sales before exceptional items rose to 5.6 percent (first half of 2021: 3.4 percent). The half-year result benefited in particular from a strong second quarter. This is also the main reason that net operating cash flow reached EUR 569 million in the first six months. Thanks to an optimized model and pricing policy, the company achieved a turnover of just under 33 billion euros (first half 2021: 36 billion euros), despite a significant year-on-year decline in vehicle deliveries.
Volkswagen CEO Thomas Schäfer said: “We are making great progress in implementing our electric mobility, digitalization and software strategy and have achieved significant speed in the second quarter of 2022, despite the continued tense supply situation. We will continue to apply extreme cost discipline and will leverage even more synergies at all levels within the Volume brand group. The goal is to increase efficiency for the entire Volume brand group by 20 percent in the medium term. For the second half of the year, we are cautiously optimistic that the supply situation will ease.” The Volume brand group, which consists of Volkswagen Passenger Cars, SEAT and CUPRA, ŠKODA and Volkswagen Commercial Vehicles, is the responsibility of Thomas Schäfer on the Board of Group governance The brands need to work even more closely in the future to become even faster, more effective and more cost-efficient – turning the large number of vehicles they produce into a competitive advantage.
Focus on cost efficiency remains unchanged
Contributing to the financial result include the continued consistent drive to optimize fixed costs and distribution costs, the continued encouraging trend in the regions – especially the Americas – and the investment focus on digitization and electric mobility, which are important issues. are for the future. “Our measures to reduce costs and increase profits are having an impact despite ongoing geopolitical uncertainties, sharp increases in raw material and energy prices, supply and supply chain disruptions and the impact of the pandemic in China,” said Volkswagen CFO Alexander Seitz . “The upward trend continued into the second quarter.”
Volkswagen delivers 25 percent more fully electric cars
As a result of the war in Ukraine, the global semiconductor shortage and the coronavirus pandemic in China, global deliveries amounted to 2.08 million vehicles (down from 23.2 percent). Meanwhile, the number of electric vehicles delivered continues to grow: a total of 116,000 units, 25 percent more fully electric cars have been delivered than in the same period of the previous year. The clear frontrunner was the ID.4 – with approximately 63,000 deliveries – turning BEV into an ID.4 every second. In China, deliveries of electric vehicles by Volkswagen have more than doubled, and in June the number of vehicles in the ID. family reached a new record, with 17,600 models delivered to Chinese customers.
Overall, the demand for both ICE and electric vehicles remains high. The order book for all powertrain types is 728,000 vehicles for Europe alone, including approximately 139,000 all-electric IDs. The Group is working hard to further shorten delivery times for customers and to process the large order backlog as quickly as possible.
Outlook for 2022 improved – despite rising raw material and energy prices
“We expect the impact of raw material and energy prices to be significantly higher in the second half of 2022 than in the first half of the year. We are taking a package of measures to counter this trend. We are confident that we will be able to largely offset these price increases and continue our positive trend. For this reason, we are raising our outlook, provided the supply situation develops in line with expectations. For the full year 2022, we are now targeting an operating return on sales before specialty items of 4 to 5 percent,” said Alexander Seitz. The full-year outlook was previously up to 4 percent.
Financial figures Volkswagen Passenger cars
|Jan. – June 2021||Jan. – June 2022||Change in percent|
|Revenue (€ billion)||35.8||33.2||–7.3%|
|Operation result before exceptional items (€ million)||1,202||1,860||+54.7%|
|Operational return on sales for special items (%)||3.4%||5.6%||+64.7%|
|Net cash flow (€ million)
for special items
NB: Structural changes due to the demerger of VW Group Components led to changes in last year’s figures)