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Volkswagen: Quarterly Results/2023 Q4: Difference between revisions
Volkswagen: Quarterly Results/2023 Q4 (view source)
Revision as of 10:29, 18 March 2024
, 18 March 2024→Earnings Call Summary
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* Blume said they are stepping up the pace with local partners in China and catching up with the competition with their in-China for China strategy. | * Blume said they are stepping up the pace with local partners in China and catching up with the competition with their in-China for China strategy. | ||
* China Joint Ventures delivered 3.2 million vehicles in 2023 (+2% y/y). | |||
* They advanced their ICE market share in China in 2023. | |||
* Their proportionate operating result held up well at 2.6 billion euros in 2023. | |||
* '''They expect the BEV market to remain highly competitive in 2024 as they transition to new energy vehicles. This will affect their profitability in the short term, hence they expect the proportionate operating profit in the range of EUR 1.5 billion and EUR 2 billion in 2024.''' | |||
==== Europe ==== | ==== Europe ==== | ||
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* Oliver Blume said volume was the main growth driver in 2023 but price and product mix also contributed as well. | * Oliver Blume said volume was the main growth driver in 2023 but price and product mix also contributed as well. | ||
* Passenger Cars Business recorded an operating profit of 9.5 billion euros. 7 billion was due to strong volume growth, 2 billion was due to pricing while mix was slightly positive. | * Passenger Cars Business recorded an operating profit of 9.5 billion euros. 7 billion was due to strong volume growth, 2 billion was due to pricing while mix was slightly positive. | ||
* Overall contract volume for the Financial Services was stable while credit loss ratio was largely unchanged versus 2022 despite a worsened macroeconomic environment. | * Overall contract volume for the Financial Services was stable while the credit loss ratio was largely unchanged versus 2022 despite a worsened macroeconomic environment. | ||
* Financial Services operating income fell by a third to 3.8 billion euros, reflecting normalized used car prices and provisioning for residual value risk and higher interest rate levels. | |||
=== 2024 Outlook === | |||
* They expect global vehicle sales to slightly increase in 2024. | |||
* Aim to gain market share in North America and sustain their position in Europe. | |||
* They expect to lose market share in China in line with their value-over-volume strategy. | |||
* They expect the price/mix to benefit from a number of product launches. | |||
* They expect lower material prices and product costs in 2024. | |||
* They see first psoitive effects from the execution of their performance programs in 2024. | |||
* However, they expect significant ramp-up costs for new models, continued upfront investments in their battery business and China Joint Ventures and rising BEV share, which dilutes their profitability. | |||
* They expect sales revenue to grow by 5% y/y. | |||
* They forecast operating margin before special items of between 7% and 7.5%. | |||
* They forecast automotive net liquidity of between 39 and 41 billion euros in 2024. | |||
* '''CFO Antlitz said they are currently experiencing temporary headwinds, in particular , from supply constraint at selected Audi Models and a significant amount of new product launches across all brand groups over the coming two years. But they expect to catch up in the course of the year, specifically in the second half.''' | |||
* 2024 will mark a record year in product launches. They plan to launch not less than 30 new models across the brands. | |||
== Competitor Results and Expectations == | == Competitor Results and Expectations == | ||