Volkswagen speeds up its electric vehicle initiative
In 2022, Volkswagen saw a 23.6 percent increase in global sales of all-electric vehicles compared to the previous year, reaching approximately 330,000 units. The company is now ramping up its efforts to transition to e-mobility at an even faster pace: By 2030, Volkswagen plans for up to eight out of ten cars sold in Europe to be battery electric vehicles (BEVs). A similar growth target is set for North America, aiming for a 55 percent share of BEVs by 2030. Volkswagen is also set to introduce ten new BEV models by 2026, with four upcoming electric models including the second-generation ID.3, the sporty ID.3 GTX, the long-wheelbase ID. Buzz, and the flagship ID.7. The ID.2all study in the compact car segment offers a preview of Volkswagen’s approach to making electric vehicles accessible to everyone, with an anticipated starting price below EUR 25,000. The company aims to have electric vehicles available across various market segments, providing a wide range of options from entry-level BEVs to the premium ID.7 electric sedan.
Volkswagen’s manufacturing plants gear up for increased e-car production
Meanwhile, Volkswagen’s production facilities are undergoing a swift transformation to support the production of electric vehicles. The Emden plant in Germany is scheduled to be fully converted to electric vehicles this summer, with plans to manufacture the ID.7 alongside the ID.4. Production of the new-generation ID.3 will commence this fall at the Wolfsburg plant, following an investment of around EUR 460 million in the plant’s transformation by early 2025. The Zwickau and Dresden plants have already completed their conversion process, while the production of the ID.4 began last year in Chattanooga, USA.
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Strong demand for e-cars and upcoming internal combustion models in 2023
In response to regional demand, Volkswagen will introduce new models with highly efficient internal combustion engines in 2023 to complement its electric lineup. These models include new versions of the Atlas in North America, the Virtus in Brazil, as well as the Tiguan and Passat. Despite facing supply challenges, Volkswagen Passenger Cars delivered 4.6 million vehicles globally in 2022, slightly lower than the previous year. With a backlog surpassing 660,000 vehicles in Europe alone, including nearly 100,000 all-electric ID.s, Volkswagen is prioritizing the production and delivery of ordered vehicles.
Financial performance of Volkswagen Passenger Cars
2021* |
2022 - Advertisement - |
Change in % |
|
Deliveries worldwide |
4.9 - Advertisement - |
4.6 |
-6.8 % |
Sales revenue(€ billion) |
68 |
74 |
+8.7 % |
Operating profit before special items (€ billion) |
2.2 |
2.6 |
+22.5 % |
Operating return on sales |
3.2 |
3.6 |
0.4 percentage points |
Operating net cash flow |
0.3 |
1.9 |
n/a |
* Structural changes as a result of separating out VW Group Components have led to changes in prior-year figures
Future outlook for Volkswagen
Volkswagen anticipates a significant increase in the delivery of all-electric vehicles in the current fiscal year. CFO Patrik Andreas Mayer remains cautiously optimistic about stabilizing the supply chain and improving cost efficiency. However, challenges related to supply, pricing, and geopolitical factors are expected to persist in the near future. In light of these uncertainties, Volkswagen has adjusted its guidance for 2023, now aiming for an operating return of over 4 percent before special items.
Volkswagen CEO Thomas Schäfer emphasizes the company’s commitment to delivering a diverse lineup of vehicles to customers despite the ongoing challenges. With a robust product pipeline, Volkswagen remains focused on implementing its plans to strengthen the VW brand and the broader Volume brand group.