Volkswagen:Quarterly Results/2024 Q1: Difference between revisions

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 * From Q2 2024 they will no longer report monthly deliveries. They will shift to reporting quarterly deliveries since comparisons of monthly figures are often distorted due to, for, example the number of days.
+* Arno said deliveries in Q1 were held back by supply chain issues affecting Audi vehicles with V6 and V8 engines.
+* In Q1, Volkswagen Group received 730,000 orders in Western Europe, with BEV orders more than double compared to the same period in 2023. As a result, new orders improved to 1.1 million in Western Europe at the end of March, including 160,000 BEVs.
+* BEV deliveries were down by 24% and 16% in Europe and U.S, respectively while volumes in China almost doubled.
+* Volkswagen confirmed their BEV share target of 9% to 11%.
+* Deliveries by China Joint Ventures were up 8% to 694,000 in Q1, driven by growth in BEVs (which pushed BEVs share to 6% from 3% in Q1 2023).
 === Products ===
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 * SKODA recently revealed its Epiq, its first entry-level BEV that will be delivered to customers from 2026  starting at 25,000 euros.
 * Q1 marked launch of the first Porsche and Audi models based on the PPE platform.
-* Arno said deliveries in Q1 were held back by supply chain issues affecting Audi vehicles with V6 and V8 engines.
-* In Q1, Volkswagen Group received 730,000 orders in Western Europe, with BEV orders more than double compared to the same period in 2023. As a result, new orders improved to 1.1 million in Western Europe at the end of March, including 160,000 BEVs.
+=== Q1 2023 Results ===
-* Demand of EVs was muted in Q1 in Europe and North America.
+* Q1 operating result benefitted from a one-effect swing in fair value effects outside hedge accounting, amounting to about 900 million euros.
+* Product costs were slightly headwind y/y, mainly due to one-offs.
+* Recorded a significant overhead cost in Q1 (against their overhead cost discipline) due to wage increases in 2023 and weaker sales revenue growth.
+* R&D expenses increased by around 1 billion euros in Q1 .
+* Brand Group Progressive operating profit was also burdened by valuation effects of about 0.3 billion euros, resulting from order residual value model. Adjusted for valuation effects, operating margin would have been 6%, still below their 8% to 10% 2024  target.
+* Contract volume at the Volkswagen Mobility Group was stable. A slightly lower number of financing contracts were compensated by an increase in leasing and insurance contracts.
+* Operating profit at the Volkswagen Financial services was down 6% to 881 million euros due to normalization of used vehicles prices and provisioning of residual value risk as well as increased interest rates.
+=== Outlook ===
+* Volkswagen expects performance in the coming quarters to be supported by new and upcoming models such as the ID.7, Macan Electric and the Q6 e-tron.
+* '''They said they are now in the process of ramping up the supply situation at Audi and performance should improve already in Q2.'''
+* Efficiency programs initiated at the brand core in 2023 will will unfold its full impact in 2024.
+* 2024 will be the big year for R&D spend as already seen in Q1 (factored in 2024 outlook).
+* Volkswagen expects model and brand mix to improve in the coming months.
+* They expect pricing to continue to be slightly supportive, "benefiting from rollover effect from last year's price increases but burdened by higher temporary sales promotions for our electric vehicles."
+* Expect product costs to provide tailwind for the rest of the year.
+* They said they review the global BEV sales expectations continuously and are prepared to adjust capacity and capex planning in Powerco accordingly, if necessary.
+*
 == Management Guidance and Analysts Estimate ==