AutoBeta(AutoBeta.net)02/29 Report--

On February 28th, Volkswagen Group released its 2019 results. According to the financial report, Volkswagen Group's full-year sales revenue was 252.6 billion euros (1.9468 trillion yuan), up 7.1 percent from 235.8 billion euros in the same period last year. Operating profit was 17 billion euros (131 billion yuan), up 21.8 percent from 13.9 billion euros last year. Operating profit excluding special project expenses was 19.3 billion euros (148.7 billion yuan), up 12.8 percent from 17.1 billion euros last year.

Volkswagen said operating profit rose 21.8 per cent from 2018 due to reduced spending on special projects caused by diesel engine emissions incidents and an increase in Volkswagen's share of major markets.

Volkswagen said in its financial report that spending on special projects caused by the diesel engine emissions incident in 2019 was reduced to 2.3 billion euros, compared with 3.2 billion euros last year. Although Volkswagen Group's special expenses caused by the "diesel gate" emission time are decreasing, the incident has also been affecting Volkswagen Group's profit growth. Volkswagen said on Friday that it agreed to pay 830 million euros (6.28 billion yuan) to reach an agreement with the German consumer organization VZBV, according to media reports. It is understood that the Volkswagen Group caused by the emission door fines and other expenses have exceeded 33 billion euros (about 250 billion yuan), related losses and compensation are still in progress.

According to sales, Volkswagen sold 10.9746 million units worldwide in 2019, an increase of 1.3% over the same period last year, setting a new high for the group. In terms of specific market, Volkswagen Group's sales in Europe rose 3.9% to 4.5528 million compared with the same period last year, including 6.2% in Germany's home market to 1.364 million vehicles, and 0.5% to 951500 vehicles in North America. Among them, the US market grew 2.5% to 654200 vehicles.

The Chinese market is still Volkswagen's largest single market in the world, accounting for nearly 40% of Volkswagen's sales. Last year, Volkswagen's sales in China rose 0.6 per cent year-on-year to 4.2336 million vehicles, accounting for 38.6 per cent of Volkswagen's global sales. Volkswagen said that despite the challenges facing the Chinese market, the group's operating profit from the Chinese joint venture was 4.4 billion euros (39.9 billion yuan), accounting for 30.5% of the group's total profit.

From the perspective of brands, only Skoda and Volkswagen commercial vehicle sales of Volkswagen Group brands have declined. Volkswagen brand sales rose 0.5 per cent year-on-year to 6.28 million vehicles, Audi brand sales rose 1.8 per cent to 1.8456 million vehicles, Porsche brand sales rose 9.6 per cent year-on-year to 280800 vehicles, and Seattle brand sales rose 10.9 per cent to 574100 vehicles. Skoda brand sales fell 0.9 per cent year-on-year to 1.243 million vehicles. Of these, Volkswagen sold 3.1632 million vehicles in China, accounting for 50 per cent of the brand's global sales, while Audi sold 690000 vehicles in China, accounting for 37 per cent of the brand's global sales.

In a challenging market environment, Volkswagen expects car deliveries in 2020 to be in line with last year's market performance. In 2020, the group expects sales revenue to grow by 4% year-on-year, and sales revenue in the passenger car business will be slightly higher than last year's level. In terms of the overall operating profit of the group and the passenger car business, Volkswagen expects a return on operating sales of between 6.5% and 7.5% in 2020.

However, Volkswagen's outlook for 2020 is also uncertain due to the continuing tight car market and many uncertainties in several countries due to the COVID-19 epidemic.

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