Volkswagen Passenger Cars

BUSINESS DEVELOPMENT

The Volkswagen Passenger Cars brand aims to move you, and as such the TRANSFORM 2025⁺ strategy centers on a global model initiative through which the brand aims to lead innovation, technology and quality in the volume segment.

In fiscal year 2020, Volkswagen Passenger Cars launched the ID.3, the first model based on the Modular Electric Drive Toolkit (MEB). This efficient and fully connected all-electric car represents a milestone on the path towards zero-emission mobility for a broad customer base. Following on its heels in late 2020 was the ID.4, the brand’s first fully electric SUV. Powerful proportions, sleek lines and a sculptured rear are the hallmarks of its exterior and give the all-rounder an outstanding aerodynamic quality. The interior impresses with generous space, puristic design and sustainable upholstery materials. The ID.4 is to be built and sold in the core markets of Europe and China in the future and later on in the United States as well. There were several additions to the popular Golf family in the reporting period. These derivatives, based on the eighth generation of the bestselling model, include the spacious Golf Estate, the robust Golf Alltrack and the sporty, iconic Golf GTI. With the Arteon Shooting Brake, Volkswagen Passenger Cars brought out a new body version of the Arteon series in 2020 that is a completely new interpretation of the estate concept and expands the brand’s model range in the mid-size segment. In addition, the brand pushed the electrification of its portfolio with the introduction of plug-in hybrid versions of the Golf, Tiguan, Arteon, Arteon Shooting Brake and Touareg models.

The Volkswagen Passenger Cars brand delivered 5.3 million vehicles worldwide in fiscal year 2020 (−15.1%). Sales figures were below the previous year’s level in almost all markets due to the pandemic. Sales of the T-Cross increased, thus bucking the trend, and the new Atlas Cross Sport was also very popular.

The Volkswagen Passenger Cars brand sold 2.8 (3.7) million vehicles in the reporting year. The difference between deliveries and unit sales is mainly due to the fact that the vehicle-producing joint ventures in China are not attributed to the companies in the Volkswagen Passenger Cars brand.

The Volkswagen Passenger Cars brand produced 5.1 (6.2) million vehicles worldwide in 2020. At the Zwickau plant, the last vehicle with a combustion engine rolled off the assembly line in 2020. With the ID.3 and the ID.4, only electric models from Volkswagen Passenger Cars are produced there now, and models from the Audi and SEAT brands are to follow in the future.

SALES REVENUE AND EARNINGS

The Volkswagen Passenger Cars brand’s sales revenue fell by 19.6% year-on-year in 2020 to €71.1 billion. Operating profit before special items decreased to €0.5 (3.8) billion. Lower fixed costs and better price positioning were unable to compensate for the impact of lower volumes due to the Covid-19 pandemic or for negative exchange rate effects. The operating return on sales before special items amounted to 0.6 (4.3)%. The diesel issue gave rise to special items of €−0.8 (−1.9) billion.

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