Click to enlarge.
Volkswagen Group said today that 2024 operating result declined significantly to €3.9 billion, mainly due to restructuring expenses related to the site in Brussels and residual value effects, as well as intense competition and the current model offensive. The operating Margin was a scant 6.0%. (Read AutoInformed.com on Pablo Di Si Out at VW Group of America and VW Group – €2.6 Billion Exposure Over EV Plant Closing)
“In 2024, Volkswagen Group has set a decisive strategic course. With innovative, emotional products. With trailblazing strategic decisions. In 2025, we will continue to focus on consistent implementation. As our transformation gains in traction, the new strength of Volkswagen Group comes to life. Our continuing model offensive, regionally tailored products for our markets around the globe and strong partners constitute the basis for sustainable positive development. With the ramp-up of affordable e-mobility, our autonomous vehicle fleet and the battery cell production in Germany, Volkswagen is showcasing European innovation for the world as the global automotive tech driver,” claimed Oliver Blume, CEO Volkswagen Group.
Outlook for 2025
The Volkswagen Group expects the sales revenue to exceed the previous year’s figure by up to 5 per cent. The operating return on sales for the Group is expected to be between 5.5 and 6.5%.
In the Automotive Division, the Group expects an investment ratio between 12 and 13 % in 2025. The automotive net cash flow for 2025 is expected to be between €2 and €5 billion. This includes cash outflows for investments for the future as well as for restructuring measures from 2024. Net liquidity in the Automotive Division in 2025 is expected to be between €34 and €37 billion.
It remains the group’s goal to continue its robust financing and liquidity policy. Challenges will arise in particular from an environment characterized by political uncertainty, increasing trade restrictions and geopolitical tensions, the increasing intensity of competition, volatile commodity, energy and foreign exchange markets, and more stringent emissions-related requirements.
Information on the Brand Groups
Core
Increase in sales revenue compared to previous year; Operating Margin decreased slightly to 5.0%, partly due to higher fixed costs and restructuring expenses. (2024 Results Core on March 13, 2025.)
Progressive
Operating Result declines significantly to EUR 3.9 billion, mainly due to restructuring expenses related to the site in Brussels and residual value effects as well as intense competition and the current model offensive. Operating Margin of 6.0%.( 2024 Results Progressive on March 18, 2025.)
Sport Luxury
Slight decline in sales revenue, strong net cash flow; Operating Result decreases to €5.3 billion due to numerous model launches, lower sales volumes and higher costs for materials, development services and digitalization. Operating Margin remains solid at 14.5%. (2024 Results Luxury on March 12, 2025.)
TRATON Group
Slight increase in sales revenue to €46.2 billion thanks to a positive market and product mix and better unit price realization; vehicle sales on prior year level; underlying Operating Margin of 9.1%. (2024 Results TRATON Group on March 10, 2025.)
CARIAD
Strong increase in sales revenue to €1.3 billion due to higher licensing revenue from increased vehicle volumes with CARIAD software; Operating losses with €2.4 billion at prior year level; re-scaling of operations is planned.
Group Mobility
Slight increase in contract volumes; Operating Result of €3.1 billion as expected well below prior year level; decline due to higher risk costs and normalization of used car prices. 2024 Results VW Group Mobility on March 17, 2025
Note: Adjustments to the reporting logic from January 2025 will lead, among other things, to a more precise disclosure of the Automotive Division’s sales revenue. In mathematical terms, this will lead to a lower investment ratio, namely by 130 basis points to 13% in the 2024 financial year.
“In a challenging competitive environment, we achieved a decent overall financial performance in 2024. Our outlook reflects the global economic challenges and the profound changes that are happening in the industry. We keep combustion engines technologically competitive, we are simultaneously investing in electric models and software, and we continue to strengthen our regional presence – with a clear growth and investment strategy in the US. To achieve this, it is crucial that we continue to offer our customers highly attractive vehicles, while consistently reducing costs and increasing profitability. This will be our focus in the coming months and years,” said Arno Antlitz, CFO & COO Volkswagen Group.
About Ken Zino
Ken Zino, editor and publisher of AutoInformed, is a versatile auto industry participant with global experience spanning decades in print and broadcast journalism, as well as social media. He has automobile testing, marketing, public relations and communications experience. He is past president of The International Motor Press Assn, the Detroit Press Club, founding member and first President of the Automotive Press Assn. He is a member of APA, IMPA and the Midwest Automotive Press Assn.
He also brings an historical perspective while citing their contemporary relevance of the work of legendary auto writers such as Ken Purdy, Jim Dunne or Jerry Flint, or writers such as Red Smith, Mark Twain, Thomas Jefferson – all to bring perspective to a chaotic automotive universe.
Above all, decades after he first drove a car, Zino still revels in the sound of the exhaust as the throttle is blipped during a downshift and the driver’s rush that occurs when the entry, apex and exit points of a turn are smoothly and swiftly crossed. It’s the beginning of a perfect lap.
AutoInformed has an editorial philosophy that loves transportation machines of all kinds while promoting critical thinking about the future use of cars and trucks.
Zino builds AutoInformed from his background in automotive journalism starting at Hearst Publishing in New York City on Motor and MotorTech Magazines and car testing where he reviewed hundreds of vehicles in his decade-long stint as the Detroit Bureau Chief of Road & Track magazine. Zino has also worked in Europe, and Asia – now the largest automotive market in the world with China at its center.
Volkswagen Group 2024 Results Drop Significantly
Click to enlarge.
Volkswagen Group said today that 2024 operating result declined significantly to €3.9 billion, mainly due to restructuring expenses related to the site in Brussels and residual value effects, as well as intense competition and the current model offensive. The operating Margin was a scant 6.0%. (Read AutoInformed.com on Pablo Di Si Out at VW Group of America and VW Group – €2.6 Billion Exposure Over EV Plant Closing)
“In 2024, Volkswagen Group has set a decisive strategic course. With innovative, emotional products. With trailblazing strategic decisions. In 2025, we will continue to focus on consistent implementation. As our transformation gains in traction, the new strength of Volkswagen Group comes to life. Our continuing model offensive, regionally tailored products for our markets around the globe and strong partners constitute the basis for sustainable positive development. With the ramp-up of affordable e-mobility, our autonomous vehicle fleet and the battery cell production in Germany, Volkswagen is showcasing European innovation for the world as the global automotive tech driver,” claimed Oliver Blume, CEO Volkswagen Group.
Outlook for 2025
The Volkswagen Group expects the sales revenue to exceed the previous year’s figure by up to 5 per cent. The operating return on sales for the Group is expected to be between 5.5 and 6.5%.
In the Automotive Division, the Group expects an investment ratio between 12 and 13 % in 2025. The automotive net cash flow for 2025 is expected to be between €2 and €5 billion. This includes cash outflows for investments for the future as well as for restructuring measures from 2024. Net liquidity in the Automotive Division in 2025 is expected to be between €34 and €37 billion.
It remains the group’s goal to continue its robust financing and liquidity policy. Challenges will arise in particular from an environment characterized by political uncertainty, increasing trade restrictions and geopolitical tensions, the increasing intensity of competition, volatile commodity, energy and foreign exchange markets, and more stringent emissions-related requirements.
Information on the Brand Groups
Core
Increase in sales revenue compared to previous year; Operating Margin decreased slightly to 5.0%, partly due to higher fixed costs and restructuring expenses. (2024 Results Core on March 13, 2025.)
Progressive
Operating Result declines significantly to EUR 3.9 billion, mainly due to restructuring expenses related to the site in Brussels and residual value effects as well as intense competition and the current model offensive. Operating Margin of 6.0%.( 2024 Results Progressive on March 18, 2025.)
Sport Luxury
Slight decline in sales revenue, strong net cash flow; Operating Result decreases to €5.3 billion due to numerous model launches, lower sales volumes and higher costs for materials, development services and digitalization. Operating Margin remains solid at 14.5%. (2024 Results Luxury on March 12, 2025.)
TRATON Group
Slight increase in sales revenue to €46.2 billion thanks to a positive market and product mix and better unit price realization; vehicle sales on prior year level; underlying Operating Margin of 9.1%. (2024 Results TRATON Group on March 10, 2025.)
CARIAD
Strong increase in sales revenue to €1.3 billion due to higher licensing revenue from increased vehicle volumes with CARIAD software; Operating losses with €2.4 billion at prior year level; re-scaling of operations is planned.
Group Mobility
Slight increase in contract volumes; Operating Result of €3.1 billion as expected well below prior year level; decline due to higher risk costs and normalization of used car prices. 2024 Results VW Group Mobility on March 17, 2025
Note: Adjustments to the reporting logic from January 2025 will lead, among other things, to a more precise disclosure of the Automotive Division’s sales revenue. In mathematical terms, this will lead to a lower investment ratio, namely by 130 basis points to 13% in the 2024 financial year.
“In a challenging competitive environment, we achieved a decent overall financial performance in 2024. Our outlook reflects the global economic challenges and the profound changes that are happening in the industry. We keep combustion engines technologically competitive, we are simultaneously investing in electric models and software, and we continue to strengthen our regional presence – with a clear growth and investment strategy in the US. To achieve this, it is crucial that we continue to offer our customers highly attractive vehicles, while consistently reducing costs and increasing profitability. This will be our focus in the coming months and years,” said Arno Antlitz, CFO & COO Volkswagen Group.
About Ken Zino
Ken Zino, editor and publisher of AutoInformed, is a versatile auto industry participant with global experience spanning decades in print and broadcast journalism, as well as social media. He has automobile testing, marketing, public relations and communications experience. He is past president of The International Motor Press Assn, the Detroit Press Club, founding member and first President of the Automotive Press Assn. He is a member of APA, IMPA and the Midwest Automotive Press Assn. He also brings an historical perspective while citing their contemporary relevance of the work of legendary auto writers such as Ken Purdy, Jim Dunne or Jerry Flint, or writers such as Red Smith, Mark Twain, Thomas Jefferson – all to bring perspective to a chaotic automotive universe. Above all, decades after he first drove a car, Zino still revels in the sound of the exhaust as the throttle is blipped during a downshift and the driver’s rush that occurs when the entry, apex and exit points of a turn are smoothly and swiftly crossed. It’s the beginning of a perfect lap. AutoInformed has an editorial philosophy that loves transportation machines of all kinds while promoting critical thinking about the future use of cars and trucks. Zino builds AutoInformed from his background in automotive journalism starting at Hearst Publishing in New York City on Motor and MotorTech Magazines and car testing where he reviewed hundreds of vehicles in his decade-long stint as the Detroit Bureau Chief of Road & Track magazine. Zino has also worked in Europe, and Asia – now the largest automotive market in the world with China at its center.