Targets for value-based management

Based on long-term interest rates derived from the capital market and the target capital structure (fair value of equity to debt = 2:1), the minimum required rate of return on invested capital defined for the Automotive Division remains unchanged at 9%.

Business at the Volkswagen Group was affected by the consequences of the Covid-19 pandemic throughout the whole of 2020. As a result, ROI decreased in the reporting period due to earnings-related factors and, at 6.5% (11.2%), was below both the prior-year figure and our minimum required rate of return (for further information, please see the headline “Return on investment (ROI) and value contribution in the reporting period” in the chapter entitled “Results of Operations, Financial Position and Net Assets”). In the Automotive Division, we expect the return on investment (ROI) to be noticeably above our minimum required rate of return on the invested capital.