Volkswagen Group posts mixed results for 2018, brands affected by WLTP

  • Volkswagen Passenger Cars brand delivers a record number of vehicles – earnings down, as a consequence of changeover to WLTP
  • Audi remains solid despite WLTP challenges – Porsche, ŠKODA and SEAT post new records in deliveries to customers
  • Group predicts improved performance in 2019


VW Group in 2018
Deliveries 10.8 million
Sales revenue €235.8 billion
Operating profit €17.1 billion

Herbert Diess, CEO Volkswagen Group said “2018 was a successful year for the Volkswagen Group. We performed very well in spite of strong headwinds. Our Group brands worked very hard to help achieve this result. We must now redouble our efforts, step up the pace and resolutely continue the transformation we have begun.”

The Volkswagen Passenger Cars brand continued its product initiative in 2018, growing its sales revenue by 6.8 percent to EUR 84.6 billion.

Sales revenue of the Audi brand came in at EUR 59.2 (59.8) billion in fiscal year 2018 in a difficult market environment. The financial key performance indicators for the Lamborghini and Ducati brands are included in the financial figures for the Audi brand.

At EUR 17.3 billion, the ŠKODA brand’s sales revenue in 2018 was 4.4 percent higher than in 2017. Operating profit fell by 14.6 percent to EUR 1.4 billion; the decline mainly resulted from negative exchange rate effects, negative impacts from WLTP, a rise in personnel costs and higher upfront expenditures for new products.


“2018 was a successful year for the Volkswagen Group. We performed very well in spite of strong headwinds. Our Group brands worked very hard to help achieve this result. We must now redouble our efforts, step up the pace and resolutely continue the transformation we have begun.”


Herbert Diess, CEO Volkswagen Group

The SEAT brand continued its upward trend performance in fiscal year 2018: sales revenue was EUR 10.2 billion, exceeding the previous year’s record figure by 3.1 percent. Operating profit rose to EUR 254 (191) million, which was also a new record.

The 2018 fiscal year was once again very successful for Porsche: the sales revenue generated by Porsche Automotive rose by 9.2 percent to EUR 23.7 billion. Operating profit increased by 2.7 percent year-on-year to EUR 4.1 billion.

Volkswagen Financial Services generated sales revenue of EUR 32.8 billion in the past fiscal year, thus exceeding the prior-year level by 2.9 percent. Operating profit rose by 6.2 percent to EUR 2.6 billion – a new record. The increase was mainly attributable to business growth.

Outlook
Volkswagen expects that deliveries to customers of the Volkswagen Group in 2019 will slightly exceed the prior-year figure amid continuously challenging market conditions. Challenges will arise particularly from the economic situation, the increasing intensity of competition, exchange rate volatility and stricter WLTP requirements. Volkswagen expects the sales revenues of the Volkswagen Group to grow by as much as 5% year-on-year. In terms of the operating profit for the Group, Volkswagen forecasts an operating return on sales in the range of 6.5–7.5 percent in 2019.

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