The Volkswagen Group closed fiscal year 2020 stronger than expected despite the Covid-19 pandemic, while important strategic steps accelerated the Group’s transformation into a ‘tech’ company. The Group’s effective crisis management, the rapid recovery of its largest single market China and particularly the more stable premium and financial services business were key to the strong performance and successful containment of the pandemic effects.

Sales revenue amounted to 222.9 billion euros (-11.8%), outperforming sales volumes (-16.4%). Operating profit before special items (diesel) reached a solid level of 10.6 billion euros (-45%) despite the pandemic. The operating return on sales before special items stood at 4.8% (7.6%).

Frank Witter, member of the Group Board of Management responsible for Finance and IT, said: “Covid-19 is posing unprecedented challenges for us all. Last year, the Volkswagen Group succeeded in containing the effects of the pandemic on its business and laying important strategic foundations for its transformation at the same time.

“The financial results now available are far better than originally expected and show what our company is capable of achieving, especially in a crisis. We intend to carry over the strong momentum from the significantly better second half into the current year, and the programs for reducing our fixed costs and in procurement will make us more robust in the long term. We are thus more optimistic and are striving to hit the higher end of the range targeted for the Group’s operating return on sales.”

In fiscal year 2020, the Volkswagen Group sold 9.2 million vehicles (-16.4%) and slightly increased its share of the global passenger car market to 13.0% (12.9%). As part of the global ‘e-offensive’, 422,000 EVs were delivered to customers, three-times as many as in the preceding year.

Sales revenue amounted to 222.9 billion euros. The -11.8% decrease year-on-year was mainly attributable to falling volumes as a result of the Covid-19 pandemic. Operating profit before special items nevertheless came in at a solid 10.6 billion euros (19.3 billion), which amounts to an operating return on sales before special items of 4.8% (7.6%).

In addition to the decline in the sales volume, negative exchange rate effects constituted adverse factors, and one-off expenses for restructuring measures of 0.5 billion euros also contributed to the reduction in profit.

The Volkswagen Group anticipates that – assuming successful containment of the Covid-19 pandemic – deliveries to customers in 2021 will be significantly up on the previous year amid continued challenging market conditions.

Challenges will arise in particular from the economic situation, increasing intensity of competition, volatile commodity and foreign exchange markets, securing supply chains and more stringent emissions-related requirements.