The Volkswagen Group has reported its financial performance for the first quarter of 2025. Overall group sales rose by 3%, attributed primarily to increased vehicle sales in regions outside China. Revenue growth was recorded in the Brand Group Core, Brand Group Progressive, and the Financial Services business, which was partially offset by a drop in revenue from the Brand Group Sport Luxury and TRATON due to reduced unit sales.
The operating result was affected by negative price/mix impacts and increased fixed costs, alongside significant special effects amounting to approximately EUR 1.1 billion. Setting aside these special effects, the operating result stood at around EUR 4.0 billion, maintaining an operating margin of 5.1%. Despite this, the net cash flow remained negative but improved compared to the previous year, influenced by EUR 0.7 billion for mergers and acquisitions and EUR 0.5 billion in restructuring expenditures.
The quarter saw an increase in unit sales in Europe by 4% and South America by 17%, which balanced out decreases of 2% in North America and an anticipated 6% in China. Volkswagen highlighted robust demand for new models, such as the VW ID.7 Tourer and CUPRA Terramar, with a notable surge in fully electric vehicle orders by 64% in Western Europe.
Volkswagen anticipates that sales revenue for the fiscal year will exceed the prior year's by up to 5%. The expected operating return on sales is projected between 5.5% and 6.5%, exempt from the tariff effects that were recently announced.
In 2025, the Automotive Division is forecasted to have an investment ratio between 12.0% and 13.0%. Moreover, the automotive net cash flow is anticipated to be between EUR 2.0 and EUR 5.0 billion, inclusive of future investments and restructuring disbursements. Net liquidity in this division for 2025 is forecasted to range between EUR 34 billion and EUR 37 billion.
The company foresees potential challenges stemming from a volatile environment marked by political uncertainties, growing trade limitations, geopolitical tension, intense competition, variable commodity and energy prices, and stringent emissions regulations.
Volkswagen's reporting logic adjustments effective January 2025 aim to provide more precise disclosure of sales revenue within the Automotive Division, projecting a lower investment ratio of 13.0% for the 2024 fiscal year due to these changes. This adjustment is expected to further reduce the investment ratio to between 12% and 13% in 2025 and approximately 10% by 2027.
Volkswagen’s first-quarter results revealed specific fluctuations: Sales revenue increased by 8% compared to the previous year, while the operating margin slipped to 3.2%, mainly impacted by special effects and a higher share of battery-electric vehicles. When excluding special effects, the operating margin was 4.6%. Operational achievements within various segments were highlighted in their scheduled results releases across days from late April to early May.