Volkswagen : brand recovers from Covid-19 slump in third quarter and confirms outlook
October 30, 2020 at 06:05 am EDT
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Alexander Seitz, CFO of the Volkswagen brand: 'Despite the ongoing challenges from the Covid-19 pandemic, the brand returned to profitability in the third quarter. This is above all due to the systematic measures taken to cut costs and secure liquidity and the dedicated efforts of our employees, who gave their all to catch up on the backlog following the temporary shutdown in spring. Thanks to our strong product substance, we are gaining market share in many regions. In the final quarter, we are doing everything in our power to get the brand's full-year operating result into positive territory.'
Gradual recovery of business continues
The gradual recovery in delivery figures after the significant falls at the beginning of the year continued in the course of the third quarter. While the Volkswagen Passenger Cars brand recorded single-digit percentage declines in July and August compared with the prior-year months, in September the brand was already almost at the previous year's level, at -0.7 percent. The drivers of the gradual improvement in sales are in particular the new compact electric vehicle, the ID.3, of which around 20,000 units have already been delivered, as well as the brand's plug-in hybrids, which are in high demand, and the significant pick-up in demand for the Golf 8.
Continuation of effective countermeasures
Despite signs of a recovery, the further development of the Covid-19 pandemic remains difficult to forecast. The brand will therefore continue the strict cost managementmeasures it has initiated. In this way, it successfully reduced fixed costs in the first nine months compared with the prior-year period. For 2020 as a whole, the brand still anticipates deliveries and sales revenue to be significantly below the prior-year level. The operating result before special items is expected to be severely lower than in 2019, but still positive.
Electric mobility offensive continues in fourth quarter
Following the market introduction of the all-electric ID.3 in September, the Volkswagen brand will continue to roll out its successfully launched e-offensive in the fourth quarter. Customers can already place orders for the ID.4, the second model to be based on the Modular Electric Drive Matrix (MEB). Being an all-electric SUV, the ID.4 has been designed as a world car, which is to be built and sold in all key regions of the world - Europe, North America, China. In addition, the brand is driving the electrification of its portfolio by launching a significant number of plug-in hybrids: PHEV versions of the new Golf and the Touareg can already be ordered. Electrified derivatives of the new Tiguan as well as the new Arteon and Arteon Shooting Brake will follow shortly. In addition, PHEV versions of the Passat and Passat Variant have also been available for a while now.
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Volkswagen AG published this content on 30 October 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 October 2020 10:04:07 UTC
Volkswagen AG is a Germany-based Company, which manufactures and sells vehicles. The Company operates through four segments: Passenger Cars, which covers the development of vehicles and engines, the production and sale of passenger cars, and the corresponding genuine parts business; Commercial vehicles, which comprises the development, production and sale of light commercial vehicles, trucks and buses, the genuine parts business and related services; Power Engineering, which consists of the development and production of diesel engines, turbo compressors, industrial turbines and chemical reactor systems, the production of gear units, propulsion components and testing systems, and Financial Services, which comprises dealer and customer financing, leasing, banking and insurance activities, fleet management and mobility services. It's brand portfolio includes Volkswagen, Audi, SEAT, SKODA, Bentley, Bugatti, Lamborghini, Porsche, Ducati, Volkswagen Commercial Vehicles, Scania and MAN.