Volkswagen: Difference between revisions

== Technology and Usage ==

March 7, 2023. Volkswagen reverses its 2030 EV target from 70% to 80%<ref>https://insideevs.com/news/656027/volkswagen-brand-raises-europe-2030-bev-sales-goal-to-80-percent/</ref>.

On 20, February 2023, Volkswagen pointed out during the Tech Day exhibition in Barcelona, Spain that it's developing its electric drive system in-house to cut on costs and reduce complexities. The company said that its drive system will offer up to 20% more efficiency. Other than batteries and electric motors, the company is in the process of developing pulse inverters and thermal management systems. Pulse inverters can be used in any vehicle including sports cars with an output of over 500 kW. Pulse inverters is "being developed for series production maturity and can already be used with the next MEB generation." VW said. On the other hand, thermal management systems will be used to improve efficiency<ref>https://www.volkswagen-newsroom.com/en/press-releases/volkswagen-group-technology-develops-complete-drive-system-for-electric-cars-15479</ref>.

''See also: [[Automotive Industry]]''

Ferrari. Market Cap 48B <ref name=":1">https://finance.yahoo.com/quote/RACE/</ref> Example of highly valued premium brand. Revenue around 5B, Net Income 1B. Could Porsche be hyped up as well? 7.7% of the total order volume was placed by retail investors <ref name=":2">https://newsroom.porsche.com/en/2022/company/porsche-ag-initial-public-offering-p911-frankfurt-stock-exchange-29830.html</ref>   

March 3, 2023: Volkswagen Group 2022 revenue came in-line with analysts estimates. Revenue was EUR 279.2 billion (+12% year-on-year) versus analysts estimate of EUR 278.37 billion (+11.3% year-on-year). Similarly, operating profit margin came in at 8.1%, as forecasted in the latest guidance. Volkswagen said its order bank remains strong at 1.8 million vehicles. It sees supply bottlenecks easing gradually in 2023. As such, the company gave revenue guidance for 2023 that exceeds Yahoo Finance analysts estimate. Volkswagen expects this year's revenue to grow by 12.5% at the mid-point to reach EUR 319 billion, above analyst's estimate of EUR 281.84 billion(+0.94% y/y). It also expects deliveries to reach 9.5 million vehicles in 2023. That is growth of 15% in deliveries compared to the prior year. Meanwhile operating margin is to come in between 7.5 and 8.5%. In light of the results, the management is proposing a dividend of EUR 8.70( +16% y/y) per ordinary share and EUR 8.76(+15.9% y/y) per preferred share<ref>https://www.volkswagen-newsroom.com/en/press-releases/volkswagen-group-achieves-solid-annual-results-significant-increase-in-deliveries-expected-in-2023-15551</ref>.

Volkswagen appears to increase the amount of leasing vehicles in the last years substantially <ref>https://www.volkswagenag.com/presence/investorrelation/publications/annual-reports/2022/volkswagen/Y_2021_e.pdf Page 226</ref>.

On March 1 2023, RBC news agency reported that Russia's Avilon autodealer group will buy Volkswagen's Kaluga plant. It did not disclose the price but said that the deal is expected to be closed in March. The  plant has an annual capacity of 225,000 vehicles, employed 4,200 people and was a recipient of €1 billion in investments. Kaluga plant was affected by Russia's war in Ukraine.<ref>https://uk.investing.com/news/stock-market-news/russias-avilon-to-buy-volkswagens-kaluga-factory--rbc-news-site-2933052

https://www.carscoops.com/2022/10/volkswagen-seeks-buyer-for-its-russian-plant-in-kaluga/</ref>

'''2021'''  

The topic needs further studying in order to display increases in lease assets accurately but for now it's save to say that Volkswagen does indeed invests an substantial parts of it's profits into their lease vehicle fleet which decreases it's free cash flow and net cash flow and makes those numbers seem worse than the situation is.   

The balance sheet esp. the balance sheet of volkswagen financial services seems solid at first glance. <ref name=":0" /> Shareholder equity increased by 18,673M EUR in 2021. Main increases incurred in intangible assets (esp. capitalized development costs, Page 275), increase in lease assets, investments and increase in cash. On the liability side there has been an increase in non current liabilities both for Volkswagen and Volkswagen Financial Services.

March 14, 2023. Volkswagen announced that it will invest $192.6 billion (180 billion euros) between 2023 and 2027. More than a third of this will go to electrification and digitalization. Previously, Volkswagen budgetted to invest 159 billion euros between 2022 and 2026. 56% of this would have gone to future technologies. The new plan would mean that Volkswagen's average annual investment sum will increase from 32 to 36 billion euros. This is above the market expectations of 26 billion euros. VW expects Powerco to generate annual sales of more than 20 billion euros by 2030<ref>https://discord.com/channels/978370501237932092/1012303584446136380/1085153455775158332</ref>.

As of 27 Feb 2023 Volkswagens valuation is crazy cheap at a P/E of 4. It's subsidiary Porsche AG has a market cap of 102B EUR while Volkswagens market cap is only 65B EUR although it still controls 75% of Porsche AG and holds a lot of other valuable assets including Audi, Volkswagen, Volkswagen Financial Services.

[Sitenote on the craziness of capital markets: On 16 November 2021 EV Startup Rivian briefly hit a 150B Dollar valuation <ref>https://www.bloomberg.com/news/articles/2021-11-16/rivian-whizzes-past-volkswagen-s-valuation-as-ev-mania-rages</ref> while having full year revenue of 55Million and a loss of over 4.5B USD <ref>https://finance.yahoo.com/quote/RIVN/balance-sheet?p=RIVN</ref>]