In the first quarter of 2022, the Volkswagen brand helped to sustainably improve the Group’s economic efficiency. The operating profit before special items grew to EUR 513million in the first three months (Q1 2021: EUR490 million). Due to an optimized model, price policy, and sales revenue, the sales revenue was just below EUR 15 billion (Q1-2021: EUR 17.6billion). The number of deliveries during the same period was around one million vehicles (Q1-2021: 1.36million) and this was due to the wars in Ukraine, the global semiconductor shortage, as well as the most recent coronavirus actions in China. However, the operating return of sales before special items rose from 2.8 percent to 3.4% in Q1 2021.
In a difficult environment, we further improved our economic efficiency. This is a clear indication that Volkswagen has chosen a path to improve its profitability and competitiveness. Ralf Brandstter, Volkswagen CEO, said that we have laid a solid foundation for the accelerated transition to zero-carbon and fully connected mobility.
Continued focus on cost efficiency outlook through 2023 confirmed
Volkswagen continues to work hard at improving its cost efficiency. This includes further reducing its fixed expenses and overheads. This will allow Volkswagen to be more competitive in the long-term. There are many challenges we face right now, including the rising commodity and energy prices, the effects of the Chinese pandemic and geopolitical uncertainty. These risks were being countered with cost-cutting measures as well as by improving the quality and quantity of our operating results in certain areas. Alexander Seitz, Volkswagen CFO said that they were still committed to achieving an operating return on sales (ORS) of 6 percent in 2023. This forecast will be affected by the outcome of the war in Ukraine and, in particular, its impact on the global economy and the activities of Volkswagen brands. Both ICE models and electric models are in high demand.
Additional sharp rise in all-electric model sales
53,400 all-electric cars (BEVs), were delivered in the first 3 months (+74%). The fully-electric ID.401This is where the ID.4 plays a major role. More than one-third of the electric vehicles sold had an ID.4, and 30,300 units were given to customers. Volkswagen is now expanding its production capacity to produce its most popular electric car. The Emden plant will begin series production of the ID.4, thereby increasing the production capacity for this highly-successful model. In the second half, the ID.4 will also be rolled off the Chattanooga production line in the United States. The ID.4 will be available in all models. Family continues to enjoy strong demand, with more than 120,000 customer orders for the ID. models in Europe alone.
The backlog of orders for all drive types reached a record high of over 670,000 vehicles in Europe alone. The Group is working hard to keep delivery times as short as possible and to quickly process the large backlog of orders.
Financial figures for Volkswagen Passenger Cars
| Q1 2021 | Q1 2022 | Change in percent | |
| Sales revenue( billion) | 17.6 | 14.9 | 15.3% |
| Operational resultsBefore special items (millions) | 490 | 513 | +4.7% |
| Return on salesBefore special items (%) | 2.8% | 3.4% | +23.6% |
| Netcashflow(million) Before special items |
365 | 92 | 74.7 |
Deliveries by Volkswagen Passenger Cars – by Region
| Q1 2021 | Q1 2022 | Change in percent | |
| Western Europe | 271,100 | 215,400 | 20.5% |
| Central and Eastern Europe | 53,800 | 34,000 | 36.8% |
| North America | 127,500 | 95,800 | 24.8% |
| South America | 109,200 | 52,300 | 52.1% |
| China incl. HK | 732,400 | 557,900 | 23.8% |
| Rest of Asia-Pacific | 29,500 | 30,200 | +2.1% |
| Middle East/Africa | 36,500 | 26,500 | 27.4% |
| Worldwide | 1,360,100 | 1,012,100 | 25.6% |
SOURCE: Volkswagen