Volkswagen is preparing the “largest reorganization in decades”. The revolution, reveals a German newspaper, will be discussed during the supervisory board in these hours. Chief Executive Officer Oliver Blume then intends to present the main points to investors at a capital markets meeting on June 21st. The group plans to increase profits by about 3 billion euros per year thanks to the contribution of all the brands they include Volkswagen, Skoda e Seat.
Less sales, more margins
2022 for the German company ended with fewer sales, but more revenues and margins. Overall revenues rose by 11.6% to 279.2 billion euros, thanks to sales of better equipped vehicles and an improved price mix. Deliveries of fully electric vehicles (BEVs) increased significantly, while the total number of vehicles delivered decreased slightly by 7% (8.263 million units versus 8.882 million in 2021) due to semiconductor shortages, supply chain disruptions, and supply disruptions in China. In total, 572,100 fully electric cars were delivered to customers, 26% more than the previous year (now it is 7% of total deliveries).
A good 2023, but that’s not enough
For the current year it is expected that the overall vehicle deliveries will increase to approximately 9.5 million thanks mainly to the strong order backlog, while semiconductor logistics and supply chain issues should ease. The House of Wolfsburg also estimates an increase in turnover of 10-15% compared to the previous year. In terms of the group’s operating result, an operating return on sales of between 7.5 and 8.5% is expected for 2023.
Volkswagen is then accelerating its own transformation activity and is investing in software and in the battery sector and in Bev platforms to prepare for the launch of major products starting in 2024. As a result, R&D expenditure increased to €18.9 billion in 2022, an 8.1% ratio of automotive sector revenues. Positive results, but which evidently do not satisfy the management. Which is ready to big renovation.