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Volkswagen:Quarterly Results/2024 Q3: Difference between revisions
Volkswagen:Quarterly Results/2024 Q3 (view source)
Revision as of 18:25, 14 November 2024
, 14 November 2024→Insights from Porche's earnings call
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* CFO Lutz Meschke said business in Q3 was impacted by product change-overs, many supply chain disruptions and prudent management of supply and demand in China. | * CFO Lutz Meschke said business in Q3 was impacted by product change-overs, many supply chain disruptions and prudent management of supply and demand in China. | ||
* Lutz pointed out that supply chain disruptions as a resulting of flooding of an important European aluminum plant have been compensated but other supply chain risks still exist and have to be managed. | * Lutz pointed out that supply chain disruptions as a resulting of flooding of an important European aluminum plant have been compensated but other supply chain risks still exist and have to be managed. "It's still very challenging. The flooding of the Novelis plant could be handled quite well. There is no significant damage in our production capacity happened in the last week. But on the other hand, we have seen additional challenges, other suppliers. And therefore, in general, I can say it's still a very challenged situation to get the entire supply chain stabilized. But when it comes to the battery cell, we are quite confident that we could, yes, solve all the residual items in order to make the steep ramp-up curve, " he said with regard to other supply chain issues. | ||
* Lutz said all the three headwinds are behind them and we should expect improved performance from here. | * Lutz said all the three headwinds are behind them and we should expect improved performance from here. | ||
===== Pricing ===== | |||
* Lutz said pricing was again positive benefiting from price increases last year and higher degree of individualization. | |||
* Lutz pointed out that order intake remains encouraging, already stretching into 2025. | |||
* Lutz said the demand for the new 911 is as expected, even exceeding expectations. | |||
* Lutz pointed out that the demand for Macan remains robust. | |||
* Lutz said that in the case of Macan, the see an increase in revenue per vehicle from individualization. | |||
* Lutz pointed out that the average retail sales price at the end of Q3 2024 was EUR 115,000 while the average wholesale price was EUR 117,000, reflecting their value over volume strategy and long-term trend. | |||
===== China situation ===== | |||
* Lutz said the situation in China remains challenging. "The situation is still very challenging. First of all, when it comes to the BEV segment, and we cannot expect a significant recovery in the upcoming years when it comes to the BEV segment, the luxury, the premium and luxury web segment in China for the European OEMs," he said. | |||
* Lutz said China sales in 2025 is expected to be at the same level as in 2024. | |||
===== Profitability ===== | |||
* Lutz said they are pursuing a cost-reduction strategy that will enable them to remain highly profitable even with car sales of just 250,000 cars per year. | |||
===== Products ===== | |||
* Lutz said the start of deliveries for the 911 GTS and the new electric Macan should boost deliveries in Q4, hence they expect a better quarter compared to Q3. " The GTS will start now in the fourth quarter, and then we will have a very steep ramp-up curve in the first half of '25. And in the second half of the year, also the 911 Turbo will start with the better results from at from the technology point of view. It's the battery cell is very stable," he said. "And as already mentioned, in 2025, this situation will be much better when it comes to the 911 mix and the entire product availability also for the E-Macan in the different world regions," he added. | |||
* Lutz pointed out that demand for BEVs in U.S. and Europe remains challenging as well. "And in the rest of the world in the states and in Europe, we see, yes, a slowdown in the BEV transition. And the customer demand is, yes, not satisfying overall. And a lot of customers, first of all, in the premium and luxury segment are looking in the direction of combustion engine cars," he said. | |||
* Analyst Patrick Hummel of UBS pointed out that they are hearing issues with the E-Macan in United States and China. "The E-Macan, what we hear in North America, Europe -- sorry, North America and China doesn't look that great either," he said. | |||
* Analyst Horst Schneider also said he gets the feeling that the order intake for the E-Macan may not be that great. " I get the feeling it's maybe not as great as you wanted, but you shared until April some numbers on the order intake," he asked. | |||
* Björn Scheib couldn't share the order intake for the E-Macan because of competitive reasons but said that it remains robust except in China. | |||
* Lutz said the situation remains challenging for Taycan in 2024 due to the market situation in China. He expects a recovery in the demand for Taycan in 2025. | |||
==== 2025 CO2 emissions ==== | |||
* Lutz pointed out that they are prepared to meet their 2025 CO2 targets and if they don't meet them then they will have to pay Volkswagen. "But at the end, we are part of the VW Group and if you are not able to fulfill the targets, then of course, we have to pay the bill also as Porsche," he said. | |||
==== Management guidance ==== | ==== Management guidance ==== | ||