Volkswagen Bolstering its Presence in China

Key Points

• 🚗 Volkswagen is strengthening its position in China after reporting solid H1 results for 2023.
• 💰 The company achieved an operating profit of EUR 11.3 billion ($12.5 billion) with revenue growth of 18% to EUR 156.3 billion ($174 billion).
• 📈 Volkswagen aims for long-term, sustainable growth with a focus on value over volume.
• 🇨🇳 The company is strengthening its position in China through technological partnerships, which include a joint venture with China-based Horizon Robotics for software development and production.
• ⚡ Volkswagen is also launching the ID.7, an important model for the electric offensive in Europe, Asia, and North America, with a significant focus on the Chinese market.

After a successful first half of 2023, Volkswagen has announced plans to bolster its position in China. The Volkswagen Group delivered robust financial results, reporting an operating profit of EUR 11.3 billion ($12.5 billion), supported by non-cash hedging effects driven by commodity hedging. Additionally, revenue grew by 18% to EUR 156.3 billion ($174 billion), signaling positive momentum for the European automaker.

Oliver Blume, CEO of Volkswagen Group, emphasized the strategic realignment and restructuring of the company, with a focus on long-term, sustainable growth. He highlighted the expansion of sales in North America and the strengthening of their presence in China through technological partnerships. Moreover, the increasing trend for fully electric vehicles aligns with the company’s direction.

Arno Antlitz, CFO & COO of Volkswagen Group, emphasized the steps taken to improve competitiveness and announced a focus on strengthening net cash flow for the second half of the year. The launch of performance programs at all brands and strategic decisions in China are expected to further enhance the Volkswagen Group’s competitive position.

The German automaker’s joint venture with China-based Horizon Robotics, valued at EUR 2 billion, aims to enhance software development and production capabilities, specifically in areas like autonomous driving, ADAS, and in-cabin solutions.

In April 2023, Volkswagen introduced the ID.7, a critical model for their electric offensive in Europe, Asia, and North America, with a special focus on the Chinese, Canadian, and US markets, according to Imelda Labbé, Member of VW’s Board of Management for Sales, Marketing, and Aftersales. The ID.7 is poised to play a significant role in Volkswagen’s electric vehicle strategy across these regions.