Volkswagen announces global investment of 180 billion euros – 03/14/2023 – Market

The Volkswagen group ended 2022 with 8.5 million cars sold worldwide. The account includes models from the brands VW, Audi, Porsche, Lamborghini, Bentley, Skoda, Seat and Cupra.

The result was released this Tuesday (14) and represents a 1% drop in the company’s global licensing, with more noticeable impacts among entry vehicles.

The sports and luxury car segments recorded better numbers, with Porsche standing out. As a result, net sales revenue reached 279 billion euros (R$ 1.4 trillion), a growth of 12% compared to 2021. Operating profit reached 22.5 billion euros (R$ 117.8 billion ), up 13%, with an average margin of 15%.

Arno Antlitz, CFO of the Volkswagen Group, said that the result was robust, despite all the supply and logistics problems that still affected the company throughout 2022. The executive said that the company’s investments in electrification and digitalization will continue.

The group’s electric car sales were up 26% last year compared to 2021. New models will be launched by the end of the year, and Brazil should receive cars that do not consume fuel from the Volkswagen brand.

The first should be the ID3 hatch and the ID4 SUV. Next will come the ID Buzz, the electric Kombi.

The group also announced a global investment of 180 billion euros (R$ 943 billion) between 2023 and 2027. This amount will be directed to the main markets in which the company operates, with emphasis on China and the United States. Brazil and other countries in South America were not mentioned during the presentation given by Oliver Blume, CEO of the Volkswagen Group.

Asked by Sheet on whether the region would be included in this new round of contributions, Blume only answered “yes”. He then explained that markets like Brazil and India need to develop simultaneous solutions that collaborate for decarbonization.

Volkswagen do Brasil has been trying to promote flex-fuel cars in the Indian market, a process that began two years ago.

There is a specific plan for South America that started in 2022 and will run until 2026. During this period, R$ 7 billion are being invested in the launch of new products produced in Brazil and Argentina, including the assembly of models that combine electricity, ethanol and gasoline. There is, however, no information on local manufacturing of 100% electric models.

One of the group’s biggest investments will focus on Canada, where the company’s first battery gigafactory in North America will be built. Production is expected to start in 2027.