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 See also: [https://docs.google.com/spreadsheets/d/1N5-EbJE-JY6cILPETeU8LtbMcSBoPyBgk8Y_w21J1uw/edit?pli=1&gid=1414737805#gid=1414737805 Valuation Model] |[[Volkswagen:Quarterly Results/2024 Q4]]| [[Volkswagen:Quarterly Results/2024 Q3]] | [[Volkswagen:Quarterly Results/2024 Q2]]
+== Q1 2025 Volkswagen Earnings Call Summary ==
+See: [https://www.webcast-eqs.com/volkswagen-2025-q1 Q1 2025 Volkswagen Earnings Call] |
+=== 2025 guidance and future outlook ===
+* Arno said in the coming months, they expect additional tailwinds from numerous new models.
+* Arno said the margins for BEV are still significantly lower than that of ICEs.
+* 2025 guidance will benefit from continued tailwinds from model launches and benefits from continued execution of performance programs.
+* Increasing BEV share and ramp up costs of new models will burden earnings in 2025 but at a slower pace than in Q1.
+* '''Arno said they are confidence in their 2025 revenue guidance due to strong order intake and bank. They achieved 1,000,000 order bank in Western Europe and April would likely see a higher order intake. He said the order intake spans into Q3 (min 16:30)'''.
+* '''Arno said they expect the performance programs to continue compensating for the dilutive margin effect of BEVs (min 1:13:36)-Q&A'''.
+* Audi is still calculating the workforce restructuring measures but even taking it into account, the still expect to be in the guidance range in Q2.
+* Arno said they are really focus on cash and strong liquidity base in light of the challenging environment (Q&A).
+* Arno pointed out that the ID.2 all will reach margin parity since it will use Lithium cells and a new technology (integrated technology) which is cost effective in today's perspective (Q&A).
+=== China ===
+* Arno pointed out that they regard the upper end of their 0.5 billion to 1 billion euros guidance for proportionate operating profit in China to be realistic.
+* '''Arno pointed out that he was very pleased with the performance on tech, product and technology that the China team has presented. "They are really delivering and they are delivering fast," he said (min 15:10).'''
+* Arno said their colleagues in China are delivering. Time to market is down 30%. Material costs have been reduced 40% with the ambition to bring it down by another 10% in 2026.
+* Arno said the ADAS that is being developed with Horizon robotics drives really great.
+* Arno said they are on a very good track to achieve the proportionate operating profit target of 2 billion euros in China in 2027.
+* Arno pointed out that it's too early to project the proportionate operating profit for 2026.
+=== Tariffs ===
+* Arno said the full impact of the tariff cannot be comprehensively assessed at this time.
+* Arno said about 200,000 vehicles are produced in the U.S, about 290,000 from Mexico and around 240,000 from Europe (Q&A).
+* Arno pointed out that they are thinking of localizing further some production in the US.
+* Arno said they can comprehend analysts estimate for the tariff impact ranging from 2 to 4 billion euros but said that's not their estimate (Q&A).
+* Arno said their engines build in the Mexico plant are not compliant with the USMCA (Q&A).
+* Tariffs pre-buy momentum was not significant for the Volkswagen Group in Q1 (Q&A).
+=== CO2 regulation ===
+* '''Arno said if the the European Union allows the CO2 targets to be met in three years instead of 2025,  the 600 million euros provisioned for the CO2 regulation would be enough for the full year. He pointed that he is a little bit cautious on the number since the subject is basically volatile (Q&A) (min 1:17:04).'''
+=== Product offensive and market share ===
+* Arno said the largest product offensive in the company's history continue into Q1 with the launch of products such as Audi A6 and Skoda LROC.
+* Arno said their new models such as the ID.7, ID.7 Tourer, Skoda LROC, Cupra Teramar, A6 E-tron and Porsche 911 are well received.Arno said they are looking at adding hybrid versions for the Atlas, Tiguan and Tyron sold in the US (Q&A).
+* Rolf said they significantly gain BEV market share in the first quarter.
+=== Cost-reduction programs ===
+* Arno said the cost reduction programs agreed last year is delivering results as evidence by reduced headcount in Q1. Headcount in Q1 reduced by around 2,000 compared to Q4. Since 2023, headcount has reduced by 7,000.
+=== Rivian tecnology ===
+* Rolf said all the Western vehicles of the Volkswagen Group would be based on the technology that they are developing with Rivian (Q&A).
+=== Debt ===
+* Arno said Volkswagen Group renewed its revolving credit facility, increasing it to 12.5 billion euros from 10 billion euros.
 == Q1 2025 Porsche Earnings Call Summary ==