All Press Releases

Volkswagen Group Components is the central supplier for the first models of the new Volkswagen ID. family and numerous other Group brand models based on the modular electric drive matrix (MEB). Volkswagen Group Components contributes around 40% of the overall added value of the first fully electric SUV by the Volkswagen brand, the world e-car ID.4. That’s around 10 percentage points more than a comparable model with conventional drive.

Volkswagen Group Components reinforces its position as a key supplier of central electric vehicle components for the brands and joint ventures of the Volkswagen Group in the most important market for electric mobility. With immediate effect, the Chinese components factory in Tianjin will be producing the APP 310 drive on the modular electric drive matrix (MEB). This component will be used in the Volkswagen ID.4 variants produced by the joint venture partners FAW (ID.4 CROZZ) and SAIC (ID.4 X). The Group’s future MEB models for China will also be supplied locally. The main factory for electric drives at Volkswagen Group Components in Kassel produces the APP 310 motor for current and future MEB models in Europe and North America.

The Volkswagen Group is pressing ahead with its transformation into a digital mobility company. As decided in Planning Round 69, the Group will spend around EUR 73 billion on electrification, hybrid powertrains and digital technology over the next five years. This was announced following today’s Supervisory Board meeting. Investments in Capex and R&D for future technologies will be raised to 50 percent from 40 percent of the Group’s total investments of around EUR 150 billion. Investments in digitalization will double to EUR 27 billion by mid-decade, reflecting the Group’s strong focus on building up software capabilities. Approximately EUR 35 billion will be spent on battery-electric vehicles. A further approximately EUR 11 billion has been earmarked for the development of hybrid vehicles of existing models.

The Volkswagen Group and Greece have agreed to establish a groundbreaking mobility system on the Mediterranean island of Astypalea. To that end, the current transport system on the island will transition to electric vehicles and renewable power generation. In the long run, Astypalea will become a model island for climate-neutral mobility. A memorandum of understanding to this effect was signed in Wolfsburg and Athen today by Konstantinos Fragogiannis, Deputy Minister of Foreign Affairs for Economic Diplomacy and Openness, and Dr. Herbert Diess, CEO of the Volkswagen Group. New mobility services such as vehicle sharing or ridesharing will help reduce and optimize traffic. Energy will be primarily generated from local green power sources such as solar and wind. The project initially will run for six years.

The Volkswagen Group’s business was heavily impacted by the Covid-19 pandemic in first nine months of 2020, but recovered noticeably in the third quarter. This means that the declines in deliveries, sales revenue and profit as of the end of September were significantly more moderate than at the half-year mark. The countermeasures initiated worldwide to cut costs, secure liquidity and decrease the funds tied up in working capital had as much of an impact as the continuing improvements in the situation in key sales markets. Deliveries to customers in the first nine months of 2020 fell by 18.7 percent year-on-year, to 6.5 (8.0) million vehicles. As a result, sales revenue, too, decreased by 16.7 percent to EUR 155.5 (186.6) billion. Thanks to a return to a clearly positive result in the third quarter, the operating result before special items amounted to EUR 2.4 (14.8) billion as of the end of September. The significant year-on-year decrease was primarily attributable to the decline in the sales volume due to the sharp fall in customer demand, especially in the second quarter. Other factors were negative effects of the fair value measurement of derivatives to which hedge accounting is not applied and exchange-rate effects. They were set against a non-cash gain on the contribution of Autonomous Intelligent Driving (AID) into the autonomous driving joint venture with Ford. Special items relating to diesel weighed on the operating profit with EUR –0.7 (–1.3) billion. Earnings before tax decreased to EUR 2.3 (14.6) billion, marking a clear return to positive territory. Automotive Division: Net cash flow turns positive again, significant increase in net liquidity