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Volkswagen:Quarterly Results/2025 Q1: Difference between revisions
→Q1 2025 Volkswagen Earnings Call Summary
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* Arno said the margins for BEV are still significantly lower than that of ICEs. | * 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. | * 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. | * Increasing BEV share and ramp up costs of new models will burden earnings in 2025 but at a slower pace than in Q1. "But if you do the math, last year, we also had an increase on BEV share quarter-to-quarter. So let's call it the distance in the first quarter was about 10 percentage points. And we had to compensate on the cost side for 10 percentage points in the first quarter. And this basically difference between the target BEV share we need to achieve. And versus last year, that narrows quarter-over-quarter. So the burden is there, but the burden narrows quarter-over-quarter," Antlitz said. | ||
* '''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 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'''. | * '''Arno said they expect the performance programs to continue compensating for the dilutive margin effect of BEVs (min 1:13:36)-Q&A'''. | ||
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* Arno said they are really focus on cash and strong liquidity base in light of the challenging environment (Q&A). | * 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). | * 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). | ||
* 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. | |||
=== China === | === China === | ||
* | * Volkswagen joint venture in China will launch " highly competitive Level 2+ and Level 2++ ADAS solutions in 2025 and 2026, respectively." | ||
* '''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 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 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. | ||