In its 1Q23 financial results, Volkswagen reported increases in revenue and profit, while announcing plans to increase electric vehicle production globally in the long-term.
“Volkswagen Group has made an encouraging start to 2023. We saw strong growth in revenues and operating profit before the non-cash valuation effects from commodity hedging,” says Arno Antlitz, CFO, Volkswagen Group, via a press release.
Volkswagen highlighted strong sales revenue growth in 1Q23, which increased by 22% to €76 billion (US$83.8 billion). Volkswagen’s operating profit increased by 35% to €7.1 billion (US$7.8 billion), which the company attributed to commodity hedging and an operating return on sales before valuation effects of 9%. The company recorded an operating profit of €5.7 billion (US$6.3 billion), an operating margin of 7.5% and an automotive net cash flow of €2.2 billion (US$2.4 billion), explained Volkswagen via a press release.
All-electric vehicles (BEVs) deliveries increased by 42% to 141,000 in 1Q23, as BEVs now account for a 7% share of total vehicle deliveries. Volkswagen has an order backlog of 1.8 million vehicles and 260,000 BEVs in Western Europe. Digitization and electrification stand at the Forefront of the company’s long-term global vision with its Ten Point-Plan.
In North America, Volkswagen has poured efforts to enhance its global battery business and placed its first overseas battery cell factory in Canada. Volkswagen’s ID will make the company’s full-electric vehicles portfolio in the US more robust, as its “Electrify America Boost Plan” aims to double the number of charging points by 2026 to 8,000.
“Volkswagen is committed to investing in its global key growth regions. In 1Q23, we announced plans for a new factory in the US for the iconic Scout brand in the highly attractive rugged SUV and pick-up segment. We also announced the Group’s first overseas battery cell factory in Canada and launched the all-new ID.71 at the Auto Shanghai,” says Antlitz.
Volkswagen will provide a strategy update on Capital Markets Day and present the new team, the new entrepreneurial spirit, its technology platforms and how its brand will benefit from regional strategies and future financial targets.