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VW Commercial Vehicles: Ready for the Electric and Mobility Transition
The VW Group subsidiary Volkswagen Commercial Vehicles (VWN) achieved an early return to profitability after the corona crisis last year, with more than half a billion euros, which was originally planned for the current year. The brand now shows a significantly positive operating result of 73 million euros (compared to minus 454 million euros in 2020). After a loss of 4.9 percent in 2020, a return of 0.7 percent was achieved in 2021 - despite an investment of 1.4 billion euros in future technologies, as emphasized. The business figures were presented by the chairman of the brand's board of directors, Carsten Intra, and CFO Michael Obrowski today during the digital annual press conference.
The effects of the corona pandemic, particularly the challenging supply of semiconductors, also led to production losses and lower vehicle deliveries at VWN last year. Customer demand was significantly higher, explained Intra. At the same time, the manufacturer of light commercial vehicles intends to continue its transformation at a high pace in 2021. The conversion of the main plant in Hanover to a high-tech location is progressing consistently. All measures are contributing to the further developed corporate strategy GRIP 2030, which VWN presented to the public for the first time at the press conference.
Ukraine War: Central Suppliers Affected
Volkswagen Commercial Vehicles delivered 359,500 vehicles to customers worldwide last year – in the previous year, it was 371,000 (minus 3.2%). Nevertheless, in this context, Intra expressed satisfaction with the 2021 sales performance, especially with the high number of incoming orders, which were around 100,000 vehicles above deliveries.
"We know what we Nutzis stand for. Our customers are often also our fans. The strong demand for our products shows the strength of the brand and the great interest of our customers in our products," Intra further explained.
With regard to the current year, Intra pointed to the still high uncertainties, especially due to the impacts of the war in Ukraine. The VWN plants are directly affected by the failure of central suppliers as a result of the war in Ukraine. This leads to renewed, unforeseeable failures in production, Intra explained.
"We are all moved by the great suffering of the people. Many of our employees have the desire to help: be it with monetary or material donations or with personal commitment," explained Intra.
Three Pillars of the Bulli
The team from Hannover is expanding their spectrum in the compact transporter sector into three pillars: the Multivan, T6.1 series, and the new ID. Buzz. In June 2021, they introduced a completely new generation of the Multivan, which scores with increased driving comfort, premium elements from the passenger car sector, and multifunctionality in the interior. The T6.1 remains in the program for commercial use and is also currently the basis for the still very successful motorhome, the California. Nevertheless, an ID. Buzz California is planned to complement the portfolio in the medium term.
There were significant increases of 35 percent in the electric models (e-Crafter and T7 eHybrid). The used business also boomed against the backdrop of stagnating new vehicle production, growing by six percent. With the recently introduced lifestyle van ID. Buzz and the ID. Buzz Cargo, a technically identical transporter designed for urban use, the manufacturer now has two purely electric models in the ramp-up phase, positioned below the T6.1 and T7 in terms of format.
“For me, the car represents the future of mobility. The ID. Buzz transfers seven decades of Bulli know-how and the design of an icon into the era of electromobility," Intra advertised.
The presentation of the new Amarok pickup, developed in cooperation with Ford, is scheduled for summer 2022. In the Hannover plant, final preparations for the series production of the new ID. Buzz are also underway. This includes the qualification of more than 5,000 employees for the construction of electric vehicles. Sixty percent of the employees have completed the qualification.
The remaining employees are currently undergoing measures that will be completed by the start of production. Parallel to this, the first conversion measures for future fully electric premium vehicles from the Audi and Bentley brands have started. A new production hall is being built in the heart of the factory for this purpose. Despite the difficult circumstances surrounding semiconductor supply, the launches of the Caddy Maxi and the compact motorhome Caddy California began in the Poznań (Poland) plant.
On the Way to Autonomous Bulli
With its partner, the automated driving specialist Argo AI, significant milestones on the way to autonomous driving have been achieved. Argo AI has been testing autonomous driving with ID. Buzz AD prototypes in Munich since September. While VWN and Argo AI are developing the autonomous vehicle and the self-driving system, MOIA is the partner for an autonomous mobility service. The subsidiary has years of experience in the field of mobility services, the so-called “Mobility as a Service” (MaaS). Within a short time, the VW subsidiary has built Europe's largest, purely electric ride-pooling service with drivers and transported millions of passengers. From 2025, the mobility service provider will be the first user of the ID. Buzz AD in Hamburg.
Virtual Freight Forwarder Cito ai: Start-ups Under the Group's Roof
A year ago, the start-up Cito was introduced as part of the VWN activities in the TaaS (Transport as a Service) sector. The market launch of Cito took place as planned in the summer of 2021. The transport solution for business customers focuses on the market for time-critical transports. More than 200 partners are now registered on the platform, with revenue growing in double digits every month, which is also on schedule, according to the provider. The platform currently offers direct trips within Germany and to other European countries.
Where the Journey is Going: GRIP Under the Wheels
In the context of the annual press conference, Carsten Intra presented the details of the further developed strategy called GRIP 2030 for the first time. The strategy describes the company’s target vision until the end of the decade.
“By 2030, more than 55 percent of our vehicles in Europe will be battery-electric vehicles powered by 'green' electricity,” Intra said.
With the development of AD technology, an integral component of Volkswagen Group’s NEW AUTO strategy is also being provided. The manufacturer is on the way to becoming an “agile, performance-oriented, and digital company,” Intra advertised. The vision is increasingly "use instead of own," and Intra believes that the new business, including autonomous driving, mobility as a service, and transport as a service (ADMT), will have a larger share of revenue than conventional vehicle sales by 2030. The company aims for a profit margin of five percent by 2030, but above all a "return on investment" of 20 percent. The company will decisively shape the mobility of tomorrow with its products, Intra expressed confidently.
Translated automatically from German.
Branchenguide
Elektromobilität , Newsletter Elektromobilität , IAA Mobility , SUVs und Geländewagen , Hybrid , Antriebsarten, Kraftstoffe und Emissionen , Oberklasse- und Sportwagen , Carsharing , Autonomes Fahren (Straßenverkehr) , Ladeinfrastruktur , Verkehrspolitik , Formel E , Brennstoffzellen , Fahrzeug-Vernetzung und -Kommunikation , Fahrzeuge & Fuhrpark , Automotive-Messen & Veranstaltungen , Pkw, Kompakt- und Mittelklasse , Minis und Kleinwagen , E-Auto-Datenbank, E-Mobilität-/Automotive-Newsletter, E-Auto-Tests
