On March 14 (local time), the Volkswagen Brand Group Core held an annual press conference announcing its 2023 financial results and future strategies.
The Brand Group Core, which consists of individual brands including Volkswagen, Skoda, Seat/Cupra, and Volkswagen Commercial Vehicles, positively contributed to the overall performance of the Volkswagen Group in 2023.
Throughout 2023, the Volkswagen brand recorded sales of 2,519,000 units globally, marking a 13% increase compared to the previous year (2022 sales: 2,236,000 units). Last year’s revenue also rose to 86.4 billion euros, up from 73.8 billion euros in 2022.
Strong performance in licensing businesses and after-sales services with China played a pivotal role. Excluding special items, the operating profit increased to 3.5 billion euros, and the operating profit margin also rose to 4.1%, up by 0.5%P compared to the previous year (2022: operating profit of 2.6 billion euros, operating profit margin of 3.6%).
The improved operating performance in 2023 demonstrates the strengthened competitiveness and resilience of the brand. Considering the intensifying competition worldwide and the immense pressures from rising prices and costs, the “Accelerate Forward Road to 6.5” global performance program, agreed upon last December, is expected to contribute to stabilizing sales margins starting in 2024. Accordingly, the Volkswagen brand is establishing a foundation to enhance its competitiveness and resilience even in challenging market conditions.
Patrick Andreas Maier, CFO of Volkswagen brand, stated, “The robust financial results for the fiscal year 2023 show that Volkswagen is becoming financially firmer. As the core brand of the group, we must fulfill this responsibility through good products and figures.” He continued, “By systematically implementing the Accelerate Forward performance program, we will be able to achieve our objectives more swiftly and effectively across production plants, development, as well as management and sales by 2026,” adding, “We are well-prepared for the year 2024 despite the uncertain economic environment.”
Thomas Schäfer, member of the Volkswagen Group management board/CEO of Volkswagen brand, emphasized, “The Volkswagen Brand Core is enhancing its competitiveness through close cooperation between brands based on a clear strategy, increasing operational efficiency and innovation for customers worldwide.” He added, “It is of utmost importance to continuously improve our economic performance in challenging environments, which allows us financial flexibility to invest in vehicles and technologies that meet our customers’ high expectations for our brands.”
Lee Sang-jin daedusj@autodiary.kr