Arno Antlitz’s Post

Our strong set of results for 2023 give us confidence that we are on the right track. ▶ Revenues were up 15% to EUR 322 bn ▶ Operating result came in on previous year’s level ▶ And we more than doubled our net cash flow to EUR 10.7 bn.   But let’s look behind the scenes of Volkswagen Group. In 2023 we built on an exceptionally high order bank we cannot rely on in 2024. And there are still parts of our business that need to close the margin gap to be on par with competition.   We are in midst of a transformation in our industry. We focus on our great products in all regions and on sufficient profitability, to continue to be able to invest powerfully in the future.   2024 is the year of delivery. From a finance point of view,   ▶ we need to deliver on the ramp-up of new and exciting vehicles, the full-electric Macan from Porsche (1), Audi’s Q6 e-tron (2) or the ID.7 Tourer (3) from Volkswagen to name a few. ▶ we need to optimize our cost base significantly. ▶ we need to make greater use of synergies within the Group. ▶ and we want to position ourselves regionally more robust in seizing our unique growth opportunities in North America.     #Volkswagen #automotiveindustry #finance (1)  Porsche Macan Electric - power consumption combined 21.1 - 17.9 kWh/100 km; CO₂ emissions combined 0 g/km; CO2 class: A (2)  Near-production prototype (3)  Volkswagen ID.7 Tourer Pro - power consumption combined 16.8 - 14.5 kWh/100 km; CO₂ emissions combined 0 g/km; CO2 class: A

The results for the 2023 financial year show that we have become even more robust. ⇒ The Group's sales revenue grew by 15 percent to EUR 322.3 billion. Drivers were an increase in deliveries in Europe and North America, an improved product mix and positive price effects. ⇒ Deliveries of battery electric vehicles increased by 35 percent to 771,000 units, propelled by growth in all regions. The share of BEVs rose continuously over the course of the year, reaching 8 percent for 2023. ⇒ At EUR 22.6 billion, operating profit before special items remained at previous year's level. Significant negative valuation effects, particularly from commodity hedging of EUR 3.2 billion and higher product costs are offset by volume growth as well as high discipline in pricing and overhead costs. In 2024 we anticipate macroeconomic burdens and intense competition. Nevertheless, we are confident about this year due to our excellent product substance as well as our efficiency programs and will consistently drive forward the transformation of the Volkswagen Group. The wealth of new products and the positive development of raw material and product costs are expected to provide a tailwind. ❗ Our flexibility is our strength, and we are continuing to invest in our product substance by driving forward electrification, while simultaneously keeping our combustion vehicles competitive during the transition phase. #strategy #AutomotiveTrends

An unusual photo of an extraordinary event: We celebrate the groundbreaking of the new Scout Motors Inc. Production Center in South Carolina. Here in Blythewood is where Scout Motors employees will craft the next generation of all-electric trucks and rugged SUVs. Congratulations to Scott and his exceptionally dedicated team. I am certain you have what it takes to revitalize an American icon. With the all-electric Scout trucks and R-SUVs, we at Volkswagen Group see a once in a lifetime opportunity to enter the C-Pickup segment where scale matters most. An important ingredient to grow and to grow profitably in the U.S. #automotive #strategy #theworldneedsscouts

The fireside chat with our dedicated team at Volkswagen Group of America’s new headquarters in Reston, Virginia was certainly a highlight of my visit to the U.S. - full of fruitful discussions with investors, journalists and at management board meetings. It was a very motivating gathering for me with colleagues from Volkswagen of America, Inc, Audi of America, Automobili Lamborghini S.p.A., Electrify America, and Volkswagen Credit.   As the Chairman of the Board of Volkswagen Group of America, I shared our vision and strategy, highlighting North America as a pivotal growth region for all our brands. We delved into various topics including our competitive edge in EV vehicles, the question of localizing Audi production in North America, and addressing supply chain challenges including vehicle logistics.   The discussion was open, transparent, and centered around our electric vehicle future in the U.S. I acknowledged the challenges we've faced, particularly in software development but also pointed towards the decisive steps we have taken as a company to overcome those. I also underlined that we have a great opportunity become stronger than ever in North America. The upcoming launches of the Volkswagen ID.Buzz and ID.7 later this year are testament to our commitment and progress.   The open and constructive dialog we had reinforces my belief in the great  potential of our team in North America.   Thanks to everyone who joined the chat. Let’s do this again very soon.   #VolkswagenGroup #Leadership #ElectricVehicles #Teamwork

Now is our time to grow profitably in North America.   While in buzzing New York, I had the chance to talk about our strategy for North America. 2023 was a successful year for our business here, with deliveries up 18 percent.   However, our market share stands at 4 percent in the US. Although we are a global company, for years and years we were lacking local scale in North America in the combustion engine market.   Now the US is turning electric. Everybody is starting from scratch. Electrification is our chance to grow and to grow profitably.   To play a major role in North America we have all the ingredients we need: the strategy, great products and brands with a lot of heritage, the technology, local battery production, the financial resources, the will. And we see a once-in-a-lifetime opportunity to enter the promising C-Pickup segment, in which scale matters most. Our iconic brand Scout Motors Inc. will have a great all-electric future.   We are committed to ramping up electrification – by 2030, Volkswagen Group brands plan to offer more than 30 BEV models to American consumers. Quite a few of them will be manufactured in North America. See the full segment in the link below 👇

Volkswagen Group is making strategic changes to the management remuneration structure, as announced at our Capital Markets Day in June 23.   Key to this evolution is the decision by our Supervisory Board to include an absolute (!) "Net Cash Flow" target in the annual bonus for the Volkswagen Group’s board of management. It will complement the current KPIs “Return on Sales” and “Achievement of ESG Goals” and replaces the “Operating Profit including China" metric. This shift in focus to net cash is an important further step linking our financial targets and strategic goals.   But we do not stop here. As I said before: 𝐚𝐥𝐥 𝐥𝐞𝐚𝐝𝐞𝐫𝐬 𝐬𝐡𝐨𝐮𝐥𝐝 𝐡𝐚𝐯𝐞 𝐬𝐤𝐢𝐧 𝐢𝐧 𝐭𝐡𝐞 𝐠𝐚𝐦𝐞. Consequently, and as early as next year, we plan to measure the performance of our brands’ management boards against our net cash flow goals. The following year, the entire management team will get an additional target based on cash flow.   This approach isn't just about changing metrics; it's about fostering a culture of accountability and performance at all levels of our organization. It will ensure that our remuneration schemefurther facilitates a prioritization of profitability and efficient use of capital, which are critical to our shareholders and to our long-term success.   #Volkswagen #Leadership #CorporateGovernance   📖 To read more about my view on how and why we strategically incentivize our leaders follow the link in the comments 👇  

Overall, Volkswagen Group showed a solid 9-month performance.   Sales revenues were up 16 percent. We delivered 16.2 billion operating profit, our margin stands at 6.9 percent. Before the negative impact of our commodity hedges, we even achieved a margin of 8 percent in a challenging environment.   𝗛𝗼𝘄𝗲𝘃𝗲𝗿, 𝘄𝗲 𝗰𝗹𝗲𝗮𝗿𝗹𝘆 𝗰𝗮𝗻𝗻𝗼𝘁 𝗯𝗲 𝘀𝗮𝘁𝗶𝘀𝗳𝗶𝗲𝗱 𝘄𝗶𝘁𝗵 𝗽𝗿𝗼𝗳𝗶𝘁𝗮𝗯𝗶𝗹𝗶𝘁𝘆 𝗶𝗻 𝘁𝗵𝗲 𝘁𝗵𝗶𝗿𝗱 𝗾𝘂𝗮𝗿𝘁𝗲𝗿, 𝘄𝗵𝗶𝗰𝗵 𝗳𝗲𝗹𝗹 𝘀𝗵𝗼𝗿𝘁 𝗼𝗳 𝗼𝘂𝗿 𝗮𝗺𝗯𝗶𝘁𝗶𝗼𝘂𝘀 𝘁𝗮𝗿𝗴𝗲𝘁𝘀.   As expected, the competitive landscape is increasingly more demanding and factors such as inflation and interest rates are adding to the pressure.   To increase competitiveness and resilience, we have a clear plan in place:   ✅ Leveraging Our Strengths: We are fortunate to have strong brands and a solid product substance. We will continue to build on these strengths to deliver quality and value to our customers. ✅ Embracing Transformation: We are committed to investing in the transformation of our company towards electrification and digitalization to stay at the forefront of these significant developments. ✅ Balanced Global Growth: With our continued investments, we aim to achieve profitable growth in the US and maintain our strength in Europe and China. ✅ Cost and Investment Discipline: Last but not least, we have a clear focus on optimizing our resources, addressing our cost structure, and implementing cross-brand performance programs. We are fully committed to a continued cost and investment discipline going forward.     #Volkswagen #automotiveindustry #finance

Great watch! The Wall Street Journal nicely describes why Volkswagen Group sees a huge potential to grow and grow profitably in North America.   We want to seize the opportunity with electrification, localization of our supply chains - and cars tailored specifically for the North American market like the Scout of Scout Motors Inc. or the #VWIDBUZZ long wheelbase. https://lnkd.in/eig7q2uG #strategy #electrification #AutomotiveIndustry #FutureOfMobility

This post is the last in a series of articles that took you behind the scenes of the Volkswagen Group's strategy to create sustainable value while remaining fully focused on our customers and products. And today it's all about leadership.   As CFO, I firmly believe that leaders should have "skin in the game". That's why it's so important for us to align the interests of our brand groups and technology platform management with the goals of the Volkswagen Group. In this way, we want to create a unified force dedicated to driving our business forward in the most effective and efficient way.   A key aspect of this alignment is our compensation structure. While top management compensation is decided by the Supervisory Board, we are determined to further implement a structure that fully aligns the interests of the Volkswagen Board of Management and the heads of the individual brands and technology groups.   To achieve this, we have developed a multi-pronged approach centered on key principles to ensure that our executives have a vested interest in the success of our company.   🔸 First and foremost, long-term incentives will revolve around the creation of shareholder value, measured against the overall performance of the Group. This approach reinforces our commitment to sustainable growth and long-term prosperity.   🔸 In addition, short-term incentives will continue to focus on margin targets, measured against specific targets set for each brand and brand group. We also plan to introduce a cash flow component in the future, which will further align our executives' efforts with financial targets.   By incentivising our leaders to drive profitability and financial performance at their respective levels, we foster a culture that values success and growth at every level of our organisation.   🍃 We also recognise the increasing importance of environmental, social and governance (ESG) factors. That's why ESG considerations are already fully integrated into our compensation criteria. Promoting responsible and sustainable business practices is not just a priority, it is an essential part of our corporate identity.   This holistic approach to remuneration reflects our new guiding principles. It reinforces a culture of accountability and performance throughout our organisation and aligns the interests of shareholders with the actions of management. #VolkswagenGroup #Leadership #Performance #ESG #Sustainability #Automotive #Mobility ++++ This is the final part of my series of posts on our strategy. For an overview of recent postings use the hashtag #VWAGStrategyInsights

We are fully committed to ramp up electrification with our MEB+ and PPE architectures, paving the way for our future BEV architecture, the SSP. Through product positioning, significant battery cost savings, leveraging R&D expenditures, economies of scale and productivity gains, we expect margins to gradually improve. On this journey, 𝗼𝘂𝗿 𝗹𝗲𝗴𝗮𝗰𝘆 𝗯𝘂𝘀𝗶𝗻𝗲𝘀𝘀 𝗶𝘀 𝗮 𝗱𝗶𝘀𝘁𝗶𝗻𝗰𝘁 𝗮𝗱𝘃𝗮𝗻𝘁𝗮𝗴𝗲 𝗶𝗻 𝘁𝗼𝗱𝗮𝘆'𝘀 𝗮𝘂𝘁𝗼𝗺𝗼𝘁𝗶𝘃𝗲 𝗶𝗻𝗱𝘂𝘀𝘁𝗿𝘆 𝘁𝗵𝗮𝘁 𝘀𝗲𝘁𝘀 𝘂𝘀 𝗮𝗽𝗮𝗿𝘁 𝗳𝗿𝗼𝗺 𝘁𝗵𝗲 𝗰𝗼𝗺𝗽𝗲𝘁𝗶𝘁𝗶𝗼𝗻 and positions us for success. 1️⃣ Fully Invested MQB Architecture: The investments in MQB have been made and mostly depreciated, but the product substance is excellent, allowing for another platform cycle. 2️⃣ Capitalizing on Efficiency: Witnessing the impact of our MQB architecture, we can already see the positive effects on our CAPEX-ratio. Last year, it stood at a competitive 5.5% of Automotive revenues, demonstrating our commitment to efficiency and resource optimization. 3️⃣ Margins and Cash Flow Optimization: Even in the face of challenges posed by stricter emissions regulations, CO2 taxation, and declining demand, we have identified additional levers to enhance margins and cash flows for our combustion engine cars to partly finance the transformation to electric. Our focus on leveraging the advantages of MQB, coupled with the efficiencies gained from our multi-brand MQB factories, enables us to navigate this landscape effectively. #AutomotiveIndustry #Transformation #VWAGStrategyInsights +++ This is part four of my series of posts on our strategy. For an overview of recent postings use the hashtag #VWAGStrategyInsights