The Volkswagen Passenger Cars brand is entering the next phase of its transformation stronger. In a declining overall market, in the past year the Volkswagen Group’s core brand achieved a new delivery record of 6.3 million units, thus delivering more vehicles than ever before. In all key markets, Volkswagen was able to gain market share. The key driver was the model initiative, with growth particularly in the high-margin SUV segment stemming from the T-Cross, T-Roc and Atlas. With more than 700,000 vehicles sold, the Tiguan was once again the brand’s global bestseller. Like the Golf, it is also one of the top ten cars worldwide in terms of sales.
The market success is also reflected in significantly improved business figures: The brand’s sales revenue increased by 5 percent year on year to EUR 88.4 billion. Operating profit before special items grew by 17 percent to EUR 3.8 billion. Operating return increased to 4.3 percent (previous year: 3.8 percent) and was thus within the forecast range of 4 to 5 percent. Just as in the previous year, special items recognized in operating profit relating to the diesel issue amounted to EUR 1.9 billion in the past fiscal year.
“2019 was a successful year for the Volkswagen brand. Our products inspire customers worldwide. We made progress in all major areas. Our strategy is gaining traction. We’re delivering on our promises,” said Ralf Brandstätter, Chief Operating Officer of the Volkswagen brand. “In 2020, we will face major challenges, particularly against the backdrop of the coronavirus pandemic. However, backed by last year’s good results, we are able to face this crisis with courage and confidence. Volkswagen is a strong company with a strong team. And we have already impressively proven several times what we can achieve, if we work as a team,” added Brandstätter.
The first phase of the TRANSFORM 2025+ strategy successfully implemented
The pact for the future made a substantial contribution to increasing the competitiveness of Volkswagen. Of the planned annual cost savings of EUR 3.0 billion, we already achieved EUR 2.7 billion by the end of 2019, representing more than was planned. The reduction in the workforce of more than 10,900 jobs was carried out in a socially responsible manner. In cutting-edge fields Volkswagen has created over 4,500 new jobs, in the areas of digitalization and e-mobility, for example.
The brand systematically implemented its SUV campaign. The number of SUV models has risen from four in 2016 to 14 in the meantime. In Europe, SUVs now account for 37 percent of sales, and in the United States, even more than 50 percent. Due to the adjustment of the product portfolio and consistent cost management, Volkswagen is also making good progress in turning the regions around.
Ralf Brandstätter: “We’ve successfully implemented the first phase of the TRANSFORM 2025+ strategy. In the second phase, we’re making Volkswagen the number one in e-mobility. And we’re transforming ourselves into a digital tech business.”
Please click here to view the full press release.
SOURCE: Volkswagen
