inside
The employee magazine
of the Volkswagen brand

Company

Successful course

Summary of our brand’s performance in the first nine months of 2017: Higher sales, sales revenue, and margin, but burdened by provisions already announced for North America.

The model offensive is showing results. One example is the new Arteon presented at this year’s Geneva Motor Show by brand CEO Herbert Diess.

The Volkswagen brand continued its successful business development in the third quarter of 2017. Sales revenue rose by 8.3 percent to €58.9 billion from January to September. Over the first nine months of the year, Volkswagen also succeeded in more than doubling the operating profit before special items to €2.5 billion.

This was impacted by additional provisions of roughly the same amount for the buyback/retrofit program for 2.0-liter TDI vehicles in North America, which had already been announced by the Group and were included in the brand’s third-quarter accounts. Adjusted for this special item, the brand has improved its operating margin by 4.3 percent after nine months.

Based on this positive development, ­Volkswagen has slightly raised its forecast for the year 2017 as a whole. The brand board of management anticipates that the previous figure forecast for return on sales of 2.5 to 3.5 percent (before special items) will be slightly exceeded. In accordance with future investments expected over the coming years, the company is keeping to its medium and long-term sales revenue targets. These levels are expected to rise by at least 4 percent by 2020, and 6 percent by 2025.

» We are well on the way to achieving our key strategic goals. «

Brand CEO Herbert Diess

“The Volkswagen brand is systematically implementing the TRANSFORM 2025+ strategy,” says brand CEO Herbert Diess. “Our model offensive is increasingly paying off, and the turnaround programs are taking hold in the markets. The brand’s new strategic orientation is showing good results overall. Our ­operational earning power has improved faster than anticipated, and we are well on the way to achieving our key strategic goals.”

This positive development is also ­reflected in deliveries to customers. The brand handed 4.49 million vehicles over to customers in the nine-month period through September, for a plus of 2.7 percent. “Volkswagen has made a strong showing this year with new models and the associated trend in delivery figures. We have every reason to be confident about the future,” says Jürgen Stackmann, brand board member for Sales.