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Volkswagen:Quarterly Results/2025 Q2: Difference between revisions
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== Q2 2025 earnings call summary == | == Q2 2025 earnings call summary == | ||
==== Q2 2025 results ==== | |||
* US tariffs and restructuring costs burdened Audi operating profit in H1 2025 by EUR 750 million. Audi achieved operating return on sales of 3.3% in H1 2025. Excluding the US tariffs and restructuring costs, operating return on sale would have been 6.1%. | |||
* Financial Services developed positively in H1 2025 due to an increase in contract volumes by 10%, particularly in Europe and stable credit loss ratio. | |||
==== 2025 outlook ==== | |||
* Second half of the year will be supported by continuation of product momentum and renewed product portfolio. | |||
* Ongoing restructuring and efficiency programs are also expected to continue paying off. | |||
* Increasing BEV share will continue being a headwind. | |||
* Outlook will also be impacted by the US tariffs. | |||
* At 27.5% tariff level, a headwind of 200 basis points is guided before any mitigation measures. | |||
* At 10% tariff level, a headwind of 60 basis points is guided before any mitigation measures. | |||
* '''Antlitz said if we end up at 15% tariff for both EU and Mexico, then we would end up at the middle of the guidance (Q&A).''' | |||
* '''Antlitz cautioned that the longer we go into the second half of the year, the more we tend to move towards the lower end of the guidance (Q&A).''' | |||
* Antlitz said they expect to touch the bottom this year in Audi and Porsche, with positive momentum from 2026 onwards (Q&A). | |||
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==== Products ==== | |||
* Oliver Blume said their model offensive is making great progress. | |||
* Blume said they are continuing the most extensive product offensive in the group history in 2025. | |||
* Blume said BEV share in western Europe doubled to around 20% compared to the previous year. | |||
* Blume said 4 of the 6 best selling BEVs in Europe currently comes from Volkswagen Group and they have a BEV share of 28%. | |||
* Blume said they are receiving positive feedback from customers on design, technical performance and software features. | |||
* Blume said BEV order intake is up 62%. | |||
* Blume said their order backlog grew to 925,000 and extends to Q4. | |||
* Blume said they expect additional order intake momentum since numerous models are coming to the market next month. | |||
* Antlitz said Powerco is expected to start production at the end of the year. | |||
* Antlitz said Audi developed a completely new design and tech (Q&A). | |||
==== Restructuring program ==== | |||
* Blume pointed out that the results indicate their measures are beginning to take effect but causing high expenses. | |||
* Blume said more than 4,000 employees have left the company since the start of the year. | |||
* In the medium term, Audi expects annual savings of EUR 1 billion by cutting workforce by 7,500. | |||
* Antlitz said since the end of 2023, they have reduced workforce by around 9,000 at the Volkswagen AG. Overall, the number of employees at the Group has been reduced by 10,600 since the start of the year. | |||
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=== Tariffs === | |||
* Blume said if the current US tariffs stay in place, the burden would increase to several billions (from EUR 1.3 billion in H1 2025). | |||
* '''Antlitz said they are expecting a deal between US and Europe of around 15% (Q&A).''' | |||
* '''Antlitz said he thinks Volkswagen's investment package in the US is attractive to the US government, hence they are expecting additional deal between US and Volkswagen (Q&A).''' | |||
=== Competition === | |||
* Antlitz said they see a positive trend in Europe (Q&A). | |||
* Antlitz pointed out that they were able to improve their overall market share in Europe to 25%. | |||
==== China ==== | |||
* Blume reiterated that their newly developed China architecture is state of the art and comes with Level 2 ADAS. | |||
* Blume said they will bring 30 new models by 2027 and 50 by 2030. | |||
* Blume said they have managed to reduce material cost by 40% and target reduction to 10%. | |||
==== Autonomous driving ==== | |||
* Blume said with ID.Bus AD, they are making strides on autonomous driving. | |||
* They plan to bring it to the US market in 2026. | |||
* Blume said their software meets key regulatory requirements for level 4 vehicles. | |||
== Management and analysts' estimates == | == Management and analysts' estimates == | ||