Volkswagen: Annual General Meeting/2023

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Summary

On May 10, 2023, Volkswagen Group held its 63rd Annual General Meeting. The meeting was marred by activits protests who accussed the company of turning a blind eye to human rights abuses in its factory in China's Xinjiang province. Investors from Deka Investment and Union Investment asked the company to conduct an independent audit on the plant. VW's China board member, Ralf Brandstätter said that during his latest visit to the plant, he did “not see any evidence of human rights abuses at the plant”. He added that the company cannot conduct an independent audit on the factory without agreement from SAIC. Outside the meeting premise, activists demanded that the company reduces its carbon footprint. "A constructive dialogue is important. And a general meeting offers a good opportunity for this," the company said in response to the protests. Below is a summary of the main things touched on during the meeting.

Business Conditions

• The company noted that business conditions remain challenging. CEO Oliver Blume said, " The Volkswagen Group is facing big challenges – indeed, our entire industry is facing big challenges."
• However, they are satified with the past performace of the company. Blume noted, "Today, we are looking back on the past year and overall, we can be very satisfied."

Blume defended his dual roles

• Oliver Blume once again defended his dual roles. "The first few months since I took office have shown that my dual role as CEO of the Volkswagen Group and Chairman of Porsche AG works well and is paying off," he said. "At Porsche, I am closely involved in the processes. In the technologies. With the people. Based on this, I can make sound strategic decisions in the Group – and that benefits all our brands."
• He noted that there are no conflicts of interest. " The autonomous management of Porsche AG following the IPO means that conflicts of interest are avoided from the very outset," Blume pointed out.

Performance in China

• Volkswagen defended its record in China. "In China we are the market leader and operate from a position of strength. Last year, we more than doubled deliveries of all-electric vehicles from the ID. family in the country," Blume said "In the first four months, we grew faster than the Chinese market as a whole."
• Blume also emphasized their In China, for China approach.
• Blume noted that they want to cut development time by around one third.

Electric Vehicles

• Oliver Blume said that their EV strategy is paying off. He said, " The share of EVs in total deliveries thus rose to around seven percent. That is a new record for us – and a milestone on which we continue to build."
• He noted that their target for 2023 is a share of around 10% of total deliveries.

MEB Platform

• Oliver Blume said that the MEB platform has been successful so far.
• In 2022, half a million electric vehicles were bult on the MEB platform, making it one of the leading e-mobility platforms worldwide.
• He said that they have named further development in the platform as MEB+ platform.
• MEB+ platform production will debut in 2026 and " will be used to build electric vehicles in the booming, high-volume compact SUV segment."

Battery, Charging, Energy

• Oliver Blume said that they will be setting up around 45,000 fast-charging points in Europe, China and the USA by 2025.

Mobility Solutions

• Blume said that the Europcar Mobility Group will be the cornerstone of of Volkswagen’s future mobility platform.
• He said that Europcar Mobility Group will cater for a number of customer needs such as car sharing for a few minutes, car rental for several days and car subscriptions for multiple months.

Performance in North America

• Oliver Blume said that the company is making great strides in North America.
• He said that they have launched the "Boost Plan" strategy whose aim is to " increase the number of our fast-charging points from 3,500 to 8,000 by the end of 2025."
• He added that SUV segment accounts for " over one third of the U.S. market."

New Models

New models launched so far this year include;

• The new ID.3.
• The ID.7
• ID. Buzz
• Q8 e-tron – the top model in Audi’s electric SUV portfolio.
• CUPRA Tavascan

The timeline for new models is as given below;

• Porsche all-electric Macan based on the new Premium Platform Electric will be delivered to customers in 2024.
• 718 will go all-electric – followed by the all-electric Cayenne in 2025.
• SKODA will launch three all-electric models by 2026.
• The company plans to launch "ten new Volkswagen electric models up to 2026 – including an entry-level model with a price tag of around €25,000."

Capital Market Valuation

• Oliver Blume said that Volkswagen group has a clear plan to increase its market valuation which will be presented during the Capital Markets Day in June.
• He noted that they believe they can " achieve a sustainable increase in the value" of the company.