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The Volkswagen brand is giving its electric offensive an additional boost: by 2027, Europe’s largest automotive manufacturer will launch eleven new all-electric models and thus offer the widest electric vehicle range of all manufacturers – from a compact car priced as less than 25,000 euros through to a family saloon. In the future, there will also be sporty and emotive GTI versions of selected models from the all-electric ID. family. The ID. GTI Concept show car presented for the first time at the IAA Mobility in Munich provides a concrete insight into how Volkswagen will transport the iconic GTI label into the electric future. At the international motor show, the new orientation of the brand will be visible in all areas for the first time. Alongside electric vehicles such as the ID. GTI Concept, ID.4, ID.5 and new ID.7, Volkswagen will also continue to offer efficient combustion engine vehicles such as the new generations of the Passat and the Tiguan In the Open Space on the Odeonsplatz, Volkswagen will also show itself as an approachable brand that is looking to engage in discussions with visitors.

Thomas Schäfer, CEO of Volkswagen Passenger Cars, says: “We have realigned Volkswagen over the course of recent months. Our actions are always focused on the question of what customers expect from us. The complete range of our new orientation will be visible for the first time at the IAA Mobility. Volkswagen is delivering what customers want: whether electric, combustion engine or hybrid vehicles – all our new models impress with enjoyable efficiency, intuitive operation and high quality that is evident in all areas. In this way, we are meeting our promise of once more focusing completely on customer needs.”

Even faster pace in electric mobility. Volkswagen will launch eleven new electric models by 2027. Presales of the ID.703, the first all-electric Volkswagen saloon with a spacious interior and ranges up to 700 kilometres06, started just a few days ago. With the ID. GTI Concept show car at the IAA Mobility, Volkswagen is demonstrating for the first time how the GTI label will be transported into the age of electric mobility. The production version of the vehicle based on the modular electric drive (MEB) platform is scheduled to hit the roads in 2027. “The perfect combination of driving pleasure and everyday usability – that is what the three letters GTI have meant for decades,” says Schäfer. With the ID. GTI Concept, we are taking the GTI DNA into the electric age. It remains sporty, iconic, technologically progressive and accessible, but now with a new interpretation for tomorrow’s world: electric, fully connected and extremely emotive. Here, driving pleasure and sustainability are a perfect match. This means GTI has a future – for our brand and for the fans. A Volkswagen sports car for the electric age that is suitable for everyday driving: 100 per cent electric – 100 per cent emotion.”

Focus on core models. By 2033 at the latest, Volkswagen will produce only electric vehicles in Europe. Until then, efficient combustion engine vehicles will continue to play an important part in the product range. In future, Volkswagen will concentrate above all on its successful core models such as the Golf, T-Roc, Passat and Tiguan. At the IAA Mobility, visitors can take a closer look at the new generations of the Passat and the Tiguan. There will also be plug-in hybrid versions of these two models based on the successful modular transverse matrix (MQB) platform. These will offer an electric range of around 100 km and allow DC fast charging with a charging capacity of up to 50 kW. “With the new Tiguan and the new Passat, we are bringing the MQB to our customers in the best possible way. We are making the final generation of our combustion engine models better than ever before,” says Schäfer.

Revamped brand DNA and extended product features. Over the course of recent weeks and months, the company has driven forward the implementation of its ACCELERATE strategy. With realigned model planning and a clear customer focus, Volkswagen wants to become a love brand. This includes offering affordable mobility products for everyone. In 2026, the ID. 2all – an electric car for less than 25,000 euros – will extend the brand portfolio in the entry-level segment. 

The design language is also new at Volkswagen and is based on the pillars of stability, likeability and excitement. In the vehicle interior, it focuses on a high-quality appearance and an intuitive user experience typical for the brand. In the area of software and infotainment, Volkswagen is introducing enhanced features in all models, including the intelligent IDA voice assistant, larger displays and features-on-demand services for functions such as navigation.

An accessible brand. With the Open Space at the Odeonsplatz in the centre of Munich, Volkswagen is creating a place for interesting encounters and dialogue. Up to and including Sunday, 10 September, visitors can enjoy a varied programme including living room concerts by Ian Hooper and Loraine. There will also be panel discussions under the motto #OneFuture dealing mainly with social topics. On Tuesday, Imelda Labbé, Member of the Board of Management for Sales, Marketing and After Sales, will welcome multiple Paralympics gold medallist Verena Bentele to discuss diversity and inclusion with her and other guests. Inclusion plays an important part in all Volkswagen’s activities at the IAA. Both the exhibition stand and the Open Space are accessible for wheelchair users. A sign language interpreter will be present at all events in the Open Space, and special stand tours will also be offered for blind persons. “The Open Space is an example of how we put diversity and inclusion into practice at Volkswagen. As our name already says, we are a brand for all people. It must therefore be our aim to eliminate as many barriers as possible so that we can engage in discussions with as many people as possible. Only in this way can we find out what our customers want from us in areas such as vehicle design and operation,” says Labbé.

Article source: www.volkswagen-newsroom.com

Volkswagen is opening pre-sales for its ID.7 all-electric saloon: as of today, customers will initially be able to order the model in the Pro specification package with a range of up to 621 kilometres (WLTP) at a price of €56,995. For the market launch, Volkswagen has equipped the ID.7 with particularly convenient and high-quality technologies. Highlights such as the augmented reality head-up display and the “Discover Pro Max” navigation system are included as standard.

Imelda Labbé, Member of the Board of Management for Sales, Marketing and After Sales: “The new ID.7 will impress our customers all over the world thanks to its long ranges, quick charging, spacious interior and intuitive operation. The model therefore represents the new benchmark for all-electric premium models at Volkswagen.”

ID.7 with generous space concept and long ranges. With the ID.7, Volkswagen is once again demonstrating the benefits and versatility of its modular electric drive (MEB) platform. Thanks to short overhangs and a long wheelbase, the electric saloon offers a spacious interior with plenty of legroom for rear passengers. The large luggage compartment is able to hold luggage with a total volume of up to 532 litres. The compact drive unit is installed in the rear of the vehicle and delivers 210 kW (286 PS) and 545 Nm. Despite a length of almost five metres, the ID.7 is surprisingly agile with a turning circle of just 10.9 metres. With an average fuel consumption of 16.3 - 14.1 kWh per 100 kilometres and ranges of up to 621 km (WLTP)2, the efficient saloon in the Pro equipment specification is also suited to longer distances.

New operating concept with intelligent air conditioning system and voice assistant. The ID.7 is the first vehicle to feature intelligent electronic air vents, which distribute air across the whole interior and thereby enable the vehicle to cool down or heat up more quickly. Its large optional panoramic sunroof with “smart glass” can be switched between opaque and transparent settings by touch or voice control. The new IDA voice assistant is able to understand natural language, making the vehicle easier to operate. The ID.7 also impresses with a new menu structure in the infotainment system. Many customer requests have been taken into account here and incorporated into the new operating concept.

Volkswagen is equipping the ID.7 Pro with popular highlights as standard for the start of ordering.

These include:

• the augmented reality head-up display
• the “Discover Pro Max” navigation system
• “Hudson” alloy wheels, 8 J x 19 at the front, 8.5 J x 19 at the rear, in black, with diamond-cut finish
• Keyless locking and starting system “Keyless Access”, with SAFELOCK

The following assist systems are also included as standard for the launch:

• “Travel Assist”, “Lane Assist”, and “Emergency Assist”
• “Side Assist”, Rear Traffic Alert and exit warning system
• “Area View” including “rear view” camera system

Easy-to-understand offer structure

Thanks to optional, clearly designed equipment packages, the ID.7 is particularly easy to configure.

• The Interior package includes features such as electric ergoActive comfort seats in the front with memory function and massage programs, a convenient entry function, adjustable thigh support, pneumatic lumbar support plus background lighting with 30 different colours.
• The Interior package “Plus” includes additional airbags and the Harman Kardon sound system with twelve loudspeakers plus a centre speaker, 700-watt total power, a digital 16-channel amplifier and a subwoofer. In addition, the premium ergoActive seats offer intelligent seat climate control and activation of the lumbar and pelvic area.
• An optional Exterior package is also available, including features such as LED matrix headlights, tinted windows at the rear, and the Easy Open & Close sensor-controlled luggage compartment opening and closing function.
• The Exterior package “Plus” also includes progressive steering and DCC adaptive chassis control including driving profile selection.

Article source: www.volkswagen-newsroom.com

At the world premiere, Volkswagen presents the first photos and facts of the completely newly developed Passat. The focus is on powerful aerodynamic design, new high-efficiency drives, high quality and a host of new technologies. In just a few days, the vehicle will be shown to the public for the first time at the IAA Mobility in Munich (5 to 9 September 2023). The new Passat will be launched as a versatile Variant in the first quarter of 2024. With more than 34 million units sold worldwide, the Passat is the top-selling Volkswagen of all time after the Golf and ahead of the Beetle.

All-new, but typical Passat. Clean and powerful – the design is clearly Passat, clearly Volkswagen, yet new from every perspective. The customer-focused range of three new plug-in and mild hybrid drives and five turbocharged petrol and diesel engine variants is characterised by efficiency. The quiet and spacious Passat Variant offers a high level of travel comfort and will be optionally available with new adaptive chassis control (DCC Pro) and new ergoActive seats (with pneumatic pressure point massage). The intuitive features of the digitalised cockpit landscape are a completely new development. The new Passat can also optionally park independently and cover long distances in assisted driving mode.

Two new plug-in hybrid drives. Kai Grünitz, Member of the Brand Board of Management responsible for Technical Development, says: “The latest evolutionary stage of the modular transverse matrix (MQB evo)forms the highly innovative technical basis of the ninth Passat generation. Thanks to the significant economies of scale of the MQB evo, Volkswagen has again democratised numerous high-tech developments and made them available for hundreds of thousands of drivers.” The two completely newly developed plug-in hybrid drives (eHybrid) with a system output of 150 kW (204 PS) and 200 kW (272 PS) are a perfect example of this. In combination with a new 19.7 kWh battery (net energy content), they make all-electric ranges of around 100 km possible. This distance turns the new Passat Variant into an electric vehicle for everyday life – this is additionally ensured by short charging times as the battery can now be charged at AC charge points with 11 kW instead of the previous 3.6 kW. The Passat Variant eHybrid can even be charged with up to 50 kW at DC fast charging stations. In addition, the combination of electric drive motor and new economical turbocharged petrol engine (1.5 TSI evo2) provides overall ranges of around 1,000 km.

New 48 V mild hybrid. Also new on board the Passat is a 48 V mild hybrid drive (eTSI with 110 kW / 150 PS) that transforms kinetic energy into electric energy and makes it possible to “coast” without using the combustion engine. Two 150 kW (204 PS)01 and 195 kW (265 PS) turbo petrol engines (2.0 TSI) as well as three turbo diesel engines (2.0 TDI) with 90 kW (122 PS), 110 kW (150 PS) and 142 kW (193 PS)01 complete the powertrain range. An automatic direct shift gearbox (DSG) is always standard. The versions with outputs of 195 kW and 142 kW come with the intelligently controlled 4MOTION all-wheel drive system as standard; all other models have front-wheel drive.

New landscape display. Volkswagen has completely redesigned the high-quality interior. Particularly striking is the clearly arranged, large landscape display– stylish, functional and progressive. The MIB4 serves as the technical platform here. The latest generation of the “modular infotainment matrix” allows intuitive operation that has been consistently tailored to the wishes of Volkswagen drivers.

Assisted parking. The new Passat Variant will launch with a further developed range of state-of-the-art assist systems. The spectrum of park assist systems is new. These include the optional Park Assist Plus, Park Assist Pro and the memory function for Park Assist Pro. With Park Assist Pro, the new Passat Variant can drive into and out of parking spaces by remote control using a smartphone. If the Passat has the memory function for Park Assist Pro on board, the system can record and store the last 50 metres of a journey on request. When the vehicle reaches the same position again – for example, the entrance to the carport at home – it offers to take over the parking manoeuvre. Independent driving out of a parking space is also possible.

World premiere of DCC Pro. The adaptive chassis control DCC Pro represents a new level of suspension technology. Its spread of maximum dynamics and highest comfort sets standards in the mid-sized class. This is made possible thanks to the two-valve technology used in a Volkswagen for the first time. The ergoActive Plus seats with a pneumatic 10-chamber pressure point massage function also offer a high level of travel comfort. Thanks to a 50 mm longer wheelbase with also 50 mm more legroom in the rear and a luggage compartment capacity of up to 1,920 litres, the Passat Variant is ideally suited as an all-rounder for business and leisure.

Articles source: www.volkswagen-newsroom.com

Volkswagen Group posted solid H1 results for 2023, with rising sales revenue and strong underlying operating profit. This is in line with the Group’s “value over volume” strategy, announced at the recent Capital Markets Day. The Group's BEV strategy is also making further progress, with deliveries in the first half of the year increasing by around 50 percent year-on-year. In Europe, the Group increased its BEV deliveries by as much as 68 percent, underscoring its position as market leader in Europe. As the year progresses, significantly shorter delivery times, the remaining high order bank of 1.65 million vehicles and stable demand should provide further tailwinds. The solid net liquidity of EUR 33.6 billion in the Automotive Division also gives the Group the necessary strength and flexibility to continue investing in key regions and growth areas.

Oliver Blume, CEO Volkswagen Group: “We have strategically realigned and restructured the Volkswagen Group, with a clear plan and measurable milestones. In the first half of the year, the Volkswagen Group delivered reliably with very solid results. Sales in North America are picking up, we are strengthening our position in China through technological partnerships and on top of that the trend for fully electric vehicles is moving in the right direction. What is important to us is long-term, sustainable growth, with a focus on value over volume.”

Solid results

In the first half of 2023, the Volkswagen Group achieved an operating profit before valuation effects mainly from commodity hedging outside hedge accounting of EUR 13.9 billion, an increase of about 13 percent. This resulted in a corresponding margin of 8.9 percent, above the guidance range of 7.5 percent to 8.5 percent. Operating profit came in at EUR 11.3 billion (H1 2022: EUR 13.2 billion) largely due to non-cash hedging effects mainly from commodity hedging amounting to EUR - 2.5 billion (Q1 2023 EUR - 1.3 billion; H1 2022: EUR 0.9 billion).

Overall revenue grew by 18 percent to EUR 156.3 billion in H1 (H1 2022: EUR 132.3 billion), driven by a continued recovery in volume as well as solid mix and pricing. Vehicle deliveries declined by 1 percent in China, although there were notable signs of recovery towards the end of the reporting period. Overall, the Group continued to see solid demand.

The Group’s electrification strategy continued to accelerate, with battery electric vehicles (BEV) representing a 7.4 percent share of total deliveries in the first half (compared to 5.6 percent in H1 2022) and including 18 percent year-on-year growth in China in Q2, demonstrating a positive trend. In a challenging market environment, Volkswagen was able to increase market share particularly in Europe where the Group remains the BEV segment market leader. In the context of a more challenging market environment, Volkswagen Group aims to reach a BEV share of 8-10% of total deliveries in FY 2023. Seasonal effects, along with the significantly reduced delivery times, are likely to contribute to a higher proportion of BEV sales in H2.

In view of the continuing bottlenecks in the logistics chains, net cash flow was muted at EUR 2.5 billion in the first half of the year. In anticipation of an improving logistics situation and minor production adjustments in the second half of the year, Volkswagen Group continues to target full-year net cash flow of EUR 6-8 billion and has taken decisive measures to ensure that the lower end of this range is met.

The automotive division’s net liquidity remained solid at EUR 33.6 billion at the end of H1, which will continue to support the Group’s targeted sustainable value strategy.

Arno Antlitz, CFO & COO Volkswagen Group: “In the first half of the year, we achieved solid financial results and took major steps to improve our competitiveness. The focus for the second half is now on strengthening net cash flow. With the launch of performance programs at all brands and our strategic decisions in China, we will improve the competitive position of the Volkswagen Group even further.”

Financial Outlook for FY 2023 confirmed

Volkswagen Group confirms the financial outlook for FY 2023 published on March 3, 2023. The outlook for deliveries is slightly adapted for 2023 from around 9.5 million to 9 to 9.5 million while the Group remains fully on track to meet the sales revenue goal.

As anticipated, supply chain disruptions have continued to ease in H1 2023, with pressure shifting from semiconductor shortages to transportation and logistics delays. H2 should be supported by lower raw material costs and gradually easing logistical bottlenecks. The performance programs for the brands are designed to deliver their first results in H2, further strengthening the Group’s position in an increasingly competitive environment.

In line with the steering model announced at the recent Capital Markets Day, the Group’s focus remains on meeting profitability and cash flow targets. An emphasis on value-driven production is expected to support the already strong results. Prioritizing sustainable profitability over volume growth will enable the group to meet operating margin and cash flow targets.

Acceleration of strategic transformation in China

Volkswagen Group is stepping up the pace of its transformation in China, where the Group aims to remain the most successful international OEM and amongst the top 3 in the market, building on solid existing foundations in H1.

After a challenging start in the first two months of the year, the Group’s delivery figures in China in March through May were significantly up compared to the previous year. A decrease in June was the result of a high base in the same month last year and non-recurring effects, including a tax exemption for ICE vehicle purchases and local government subsidies. Volkswagen Group China delivered a total of 1,451,900 vehicles (-1.2 percent compared to the previous year) in the first half of 2023.

The Volkswagen Group has announced two partnerships in the region: a strategic partnership between the Volkswagen Group and Xpeng as well as the expansion of an existing cooperation between Audi with FAW and SAIC. These collaborations are intended to expand the existing product range to include models for particularly promising customer and market segments. The collaborations align with the company's "in China for China" strategy, which enables it to address market-defining trends in China at an early stage and better leverage the growth momentum of the Chinese market.

Ambitious targets and performance programs for Group brands

As noted during the recent Capital Markets Day, Volkswagen Group is focused on its strategic realignment in line with the 10-point plan and has taken decisive steps in H1 to strengthen profitability and cash flows and reduce capital intensity.

Realignment of Platforms

The Group is realigning its technology platforms to provide the brands with leading technological innovations and to unlock economies of scale.

In terms of architectures, the Group has outlined a clear path forward for the establishment of the group-wide SSP platform. As early as 2024, the new PPE is expected to be used as a competitive architecture, followed by the second generation MEB+ from 2025 forward.

The Group’s battery strategy and ramp-up offer the Group maximum flexibility and cost benefits through the Unified Cell to be developed by PowerCo.

The strategic realignment of the CARIAD organisation aims to establish it as an internal software supplier that works closely with the Group’s brands. It also seeks to accelerate the execution of the E³ platforms, the next generation of which will be designed in the newly developed Software-Defined Vehicle hub.

Furthermore, Volkswagen Group continues to make progress towards fully autonomous driving, which the Group sees as a significant future profit pool with major growth potential. Volkswagen has launched autonomous driving test programs in North America and Europe.

Brand Performance Programs

Each brand is launching its own Performance Program, which provides the framework for their advancement. The programs set equally ambitious targets across the individual brands to make them more resilient and profitable. In doing so, they focus on improving their performance in terms of margins, product mix and vehicle equipment. Moreover, emerging business models, such as mobility solutions, shall broaden the scope of opportunities for brands and exploit additional profit pools. This path is supported by the efficient bundling of economies of scale and extensive cost work in the areas of development, materials, production, distribution and fixed costs.

Brand Group results

Core

Four brands continue to lay the foundation for the positive performance of the Core Brand Group, with sales revenue climbing 30 percent in H1. Operating profit strongly increased to EUR 3.8 billion with an operating margin of 5.5 percent, including a strong contribution from North America. In addition to the focus on efficiency in key synergy areas, the strong H1 result was driven by higher sales volume, leaner structures, and consistent cost management.

Progressive

The operating margin of the Progressive Brand Group was 10 percent in H1 2023. The operating profit was heavily impacted by valuation effects mainly from commodity hedging outside hedge accounting. The underlying operating margin before these effects was above 12 percent.

Gernot Döllner will join the Group Board of Management of Volkswagen AG as the new CEO of AUDI AG, effective September 1, 2023. Döllner held several management positions at Porsche AG including Head of Concept Development and has been Head of Group Strategy, Product Strategy and General Secretariat at the Volkswagen Group since 2021. In Gernot Döllner, Audi has gained a manager with extensive Group and product experience, who will continue to develop and drive forward Audi's strategy together with the whole Audi team.

Sport Luxury

In the Sport Luxury Brand Group, Porsche’s operating margin within the automotive business remained stable at a very high level at 19.3 percent in H1, due to higher deliveries (+15 percent) coupled with constant pricing. The operating result rose 11 percent to EUR 3.9 billion, including EUR 174 million from Porsche Financial Services. Net cash flow within the automotive business stood at EUR 2.2 billion slightly below prior-year level.

Trucks

TRATON reported a unit sales increase of 22 percent. Overall sales revenue was up 27 percent, driven by strong volume expansion and positivemix and pricing effects as well as growth in vehicle services . Operating profitimproved significantly to EUR 1.8 billion, with an 8.1 percent operating margin, due to better capacity utilization and positive price-mix effects compensating for higher input costs.

Battery Business

PowerCo SE is planning to introduce a completely new manufacturing process, drycoating, in its battery cell production plants in Europe and Northern America. Drycoating has the potential to deliver reductions of about 30 percent in energy consumption and 15 percent in required floor space, thereby saving hundreds of millions of euros each year.

CARIAD

CARIAD improved sales revenue by 32 percent, driven by higher license revenues from MEB cars on the 1.1 platform. CARIAD was able to limit losses to previous year levels while investments in software platforms continued.

Articles source: www.volkswagen-newsroom.com