Brand Group Core Achieves Significant Financial Growth And Improved Brand Cooperation In 2023

In a remarkable financial upturn, the Brand Group Core, encompassing Volkswagen, Škoda, SEAT/CUPRA, and Volkswagen Commercial Vehicles, reported an 80% surge in operating profit before special items, reaching 7.3 billion euros in 2023. This significant growth is attributed to a combination of higher sales volumes, favorable price effects, enhanced parts availability, and reduced fixed costs. The group's unit sales also experienced a notable increase of 19%, totaling 4.826 million vehicles, while sales revenue saw a 21% rise to 138 billion euros.

The Brand Group Core's strategic focus on cost discipline and profitability has borne fruit, as evidenced by the operating return on sales climbing to 5.3% in 2023 from the previous year's 3.6%. A key factor in this financial health indicator is the systematic reduction of inventories, which substantially boosted net cash flow to 5.6 billion euros.

With an eye on the future, the Brand Group Core is poised to enhance its financial results further in 2024 by leveraging the ongoing performance programs of its volume brands. Despite facing a challenging global market and competitive landscape, the group is determined to bolster its economic performance. Thomas Schäfer, Head of the Brand Group Core, underscored the commitment to meeting customer expectations through targeted investments in vehicles and technologies. He stressed the importance of a clear strategy, efficient brand cooperation, increased competitiveness, and innovativeness for achieving these goals.

Each brand within the Brand Group Core played a pivotal role in the collective financial success. The Volkswagen brand witnessed a 13% growth in unit sales, reaching 2.519 million vehicles in 2023. Škoda Auto stood out with record sales revenue of 26.5 billion euros, marking an impressive 18.5% increase in unit sales. SEAT/CUPRA's unit sales soared by 28%, while Volkswagen Commercial Vehicles enjoyed a 25% uptick.

Looking ahead, the Brand Group Core has set an ambitious target of achieving an operating return of 8% by 2026. This goal will be pursued through enhanced cooperation among sister brands, optimized product costs, overhead reductions, and further volume growth. Additionally, the group plans to venture into new markets and fortify its resilience amidst economic challenges.

The collective efforts and strategic initiatives of the Brand Group Core are clearly steering it towards sustained financial growth and market competitiveness. With its robust performance in 2023 and strategic plans for the coming years, the group is well-positioned to navigate the complexities of the global automotive industry.