#Strategy

The Volkswagen Group has systematically continued its transformation in the first nine months of 2023. All-electric deliveries increased by 45 percent to 531,500 vehicles globally, raising the BEV share of total deliveries to 7.9 percent after 6.1 percent in the prior year period. In the third quarter alone, the BEV share climbed to 9.0 percent compared to 6.8 percent one year ago. From January to September, Europe remained the key growth driver with an increase of 61 percent to 341,100 vehicles. BEV deliveries jumped 74 percent to 50,300 units in the USA and surpassed prior year levels in China with an increase of 4 percent to 117,100 units.

The newly-founded Brussels-based European EV battery materials producer IONWAY has chosen to build its first CAM production plant in Nysa, Poland, adjacent to Umicore’s existing CAM plant. The JV, backed by Volkswagen Group-owned PowerCo SE and Umicore, is scaling up the EU footprint in the e-mobility business with the ambition to grow its annual production capacity to 160 GWh p.a. by the end of the decade, corresponding to 2.2 m battery-electric vehicle, based on market developments. IONWAY will thus help the European Union achieve its Green Deal ambitions by accelerating the establishment of regional, sustainable, and transparent battery value chains.

Umicore and Volkswagen Group-backed battery company PowerCo have announced the name and branding of their first-of-its kind cooperation. Their Brussels-headquartered joint venture for large-scale industrial production of CAM and pCAM in Europe will bear the name IONWAY. Both parents aim to grow IONWAY’s annual production capacity to 160 GWh p.a. by the end of the decade, corresponding to 2.2 m battery-electric vehicles.

Porsche AG is looking back on its first year after its much-anticipated IPO on 29 September 2022. “Today, we can say that our IPO has been a huge success. It’s good for our customers, our shareholders and our employees as well,” says Chairman of the Executive Board Oliver Blume. “With the greater entrepreneurial freedom and flexibility, we are able to set our own priorities. We can also act more quickly and with greater focus. In a dynamic and challenging global environment, that’s more important than ever.”

The Volkswagen Group is modernizing its corporate design, replacing the previous look from 2007. The word mark has been changed from "Volkswagen Aktiengesellschaft" to "Volkswagen Group" to underline the Group's global orientation and increase the distinctiveness of its appearance in relation to the Volkswagen brand. The word mark, font, colors, design elements and visual language were completely renewed among other things. The new corporate design is being introduced successively, starting in Germany. The international markets will follow next year.

The Volkswagen Group is reorganizing its procurement of electronic parts and semiconductors to ensure supply over the long term and, in doing so, securing itself a leading position in terms of technology as well as competitiveness. To this end, the Group has developed a new strategy for the procurement of parts with electronic components.

Today, the Volkswagen Group and its Elli brand became the first automotive company to start trading on the German electricity market of Europe's largest power exchange, EPEX Spot. The basis for electricity trading is a stationary storage system made of e-up! batteries and a new, digital electricity trading platform from Elli. In the future, the stationary storage system – the so-called "PowerCenter" – will store the energy traded on the electricity market. The pilot project is being driven forward jointly by Elli and Volkswagen After Sales and is a first step on the way to the planned Smart Energy Platform. In the future, Volkswagen and Elli want to anchor the growing storage capacities of electric cars and batteries in the energy system and make an important contribution to the energy transition.

Volkswagen Group will continue to drive forward the strategic realignment of the charging and energy business with the new Head of Charging and Energy, Giovanni Palazzo. Palazzo has been responsible for the Volkswagen Group's global charging and energy business since July 1 and also leads the Elli brand as CEO and Head of Sales. He will focus on expanding the fast-charging network and further advancing the development of Volkswagen’s own smart energy platform. Elli and Electrify America are to cooperate more closely and roll out new business models internationally. In addition, the division will strengthen cooperation with the Group brands and intensify its proximity to private and fleet customers. The cornerstones of the strategy have already been presented to investors and analysts at the Capital Markets Day.

The Volkswagen brand aims to make significant gains in South America with a major product offensive. By 2027, the company plans to grow by 40 percent in Brazil, the region’s largest market. For example, 15 new electric and flex-fuel vehicle models are being launched by 2025 alone. Hybrid vehicles will also follow in the medium term. Before the end of 2023, the company is bringing its first fully electric models to Brazil – the Volkswagen ID.4 and the ID. Buzz. In total, the South American automotive market is expected to grow 11 percent a year until 2030 – making it one of the fastest growing markets in the world. The company is thereby systematically implementing its strategy to rapidly expand its business in growth markets and to intensify sustainable mobility. Volkswagen is celebrating its 70th anniversary of foundation in Brazil these days.

As the new CEO of AUDI AG, Gernot Döllner will take his place on Volkswagen AG’s Group Board of Management on 1 September 2023. He will take over from Markus Duesmann, who will resign from Group management at the same time. The Group Supervisory Board adopted a resolution to this effect today.

Volkswagen intends to drive up its performance and profitability in the long term with the “ACCELERATE FORWARD | Road to 6.5” global performance program. The goal is to sustainably achieve a return on sales of 6.5 percent to safeguard investments in future technologies and jobs. To this end, the brand plans to improve earnings by around 10 billion euros in 2026. At today’s works meeting held at the Wolfsburg headquarters, Volkswagen CEO Thomas Schäfer outlined important milestones of the program, such as streamlining and accelerating administrative processes, increasing efficiency in development and production, streamlining the model range, and at the same time reducing the number of equipment variants and further improving product quality. Volkswagen is setting up a Project Management Office (PMO) to develop and manage the program. Stephan Wöllenstein, top manager at VW, will take over its management. The program is to be implemented in close consultation with the employee representatives. All measures should be up and running by October 2023.