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Volkswagen:Quarterly Results/2024 Q3: Difference between revisions
Volkswagen:Quarterly Results/2024 Q3 (view source)
Revision as of 19:39, 30 October 2024
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* CFO Arno Antlitz reiterated that costs at the German operations and plants are far from being competitive. | * CFO Arno Antlitz reiterated that costs at the German operations and plants are far from being competitive. | ||
* Antlitz said the biggest cost disadvantage compared to competition comes from the fixed cost, the overhead cost and the production and operational cost at the German plants and that they are mainly focusing on these. | |||
* Antlitz also said that they are also looking into other costs such as material costs. | |||
* Antlitz said in the Q&A that nothing happened in the last few months that made them to increase their stance on cost-cuts. They just want to deliver on the 6.5% target by 2026. | |||
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=== 2025 CO2 targets === | |||
* Antlitz said in the Q&A that 2025 will be a challenging year with regards to the CO2 targets. | |||
* He pointed out that they want to achieve compliance by themselves while protecting profitability. | |||
* The strong BEV order intake in Q3 gives Antlitz confidence on meeting the targets. | |||
* Antlitz pointed out that there might be a potential credit pooling but it's early to tell. | |||
* '''Rolf Woller, head of investor relations said that the they don't think the worst case scenario adds up to 4 billion euros, that reflecting on the current situation, it should be much lower. "We have also seen very good reports by -- not only by you, but also by others analyzing the CO2 situation coming up with in part quite drastical headwinds for 2025. And as said during the road show activities as well, we don't think actually that the worst case scenarios we are calculating up to €4 billion headwind that this is the -- reflects the current situation should be much, much lower."''' | |||
* Antlitz added that they also have a strong order intake of PHEVs which should also help to lower the target. | |||
=== Pricing === | |||
* '''Antlitz said pricing stabilized in Q3, boosted by last year's price increases but offsetted by higher temporary sales promotions, specifically for BEVs.''' | |||
* He said (Q&A) that pricing is being boosted by positive momentum from new models. He expects this momentum to continue. | |||
* However, they have to step up the BEVs in the coming months as they go into 2025 and BEVs are margin dilutive. They also carry higher price incentives. | |||
* Antlitz said (Q&A) the only BEV with margin is the upcoming ID.2. | |||
* Antlitz pointed out (Q&A) that he cannot rule out employee strike in December due to the restructuring efforts. | |||
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=== Products === | === Products === | ||
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* The new ID unique e-SUV has been launched in China. | * The new ID unique e-SUV has been launched in China. | ||
* Starting from early October, Skoda's first all-electric SUV starting from €33,000 is on sale. | * Starting from early October, Skoda's first all-electric SUV starting from €33,000 is on sale. | ||
* Antlitz said (Q&A) Audi has a very strong product momentum such as the Q6 etron, A5, A7, Q5 and Q7. He expects this momentum to benefit Audi over the coming 24 months. | |||
=== Joint venture with Rivian === | === Joint venture with Rivian === | ||
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* Antlitz noted that the JV fits well into their platform strategy and road map. | * Antlitz noted that the JV fits well into their platform strategy and road map. | ||
* Antlitz pointed out that they have all the ingredients to succeed in the U.S truck segment. | * Antlitz pointed out that they have all the ingredients to succeed in the U.S truck segment. | ||
* Scout EVs likely to use the Rivian architecture though it's not 100% decided, Antlitz said in the Q&A. | |||
=== Deliveries === | === Deliveries === | ||
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* At the end of September, they had an order intake of 870,000. | * At the end of September, they had an order intake of 870,000. | ||
* Antlitz said BEV order intake in Q3 showed an encouraging trend, more than doubling from last year, boosted by recent new product launches. | * Antlitz said BEV order intake in Q3 showed an encouraging trend, more than doubling from last year, boosted by recent new product launches. | ||
* Antlitz said in the Q&A that before the pre-pandemic, the total market in Europe was 60 million cars and and after the pandemic it went to 40 million cars. Since they have 25% market share, that leads to overcapacity of 500,000 cars and they don't expect that to change. | |||
=== Q3 2023 and 9M 2024 revenue and operating results === | === Q3 2023 and 9M 2024 revenue and operating results === | ||
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* Financial Services division operating result fell to €2.2 billion in the 9M of 2024 due to continued normalization of used car prices, especially outside Europe and higher risk costs. | * Financial Services division operating result fell to €2.2 billion in the 9M of 2024 due to continued normalization of used car prices, especially outside Europe and higher risk costs. | ||
* The proportionate operating result from China JVs fell 37% y/y to €1.2 billion in the 9M of 2024 due to lower sales volume as a result of intense competition, margin dilutive effects from higher BEV sales and costs associated with the realignment of business there. Overall, results are in line with their expectations and they expect to end the year with a proportionate operating result of €1.6 billion | * The proportionate operating result from China JVs fell 37% y/y to €1.2 billion in the 9M of 2024 due to lower sales volume as a result of intense competition, margin dilutive effects from higher BEV sales and costs associated with the realignment of business there. Overall, results are in line with their expectations and they expect to end the year with a proportionate operating result of €1.6 billion | ||
=== Dividend === | |||
* Antlitz said their payout ratio is set at 30% and that is still valid. However, the current situation is impacting the profitability, hence the dividend in 2024 could be below €9.6 per preferred share of 2024. | |||
== Management and analysts expectations == | == Management and analysts expectations == | ||