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Volkswagen AG ADR VWAPY

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Volkswagen Provides Strategy Update and Midterm Margin Guidance; Raising FVE to EUR 343

Richard Hilgert Senior Equity Analyst

Analyst Note

| Richard Hilgert |

No-moat-rated Volkswagen provided investors with a strategy update that, in our view, maintains the company’s position as one of the traditional automaker leaders in the transition to battery electric vehicles. Management plans global BEV sales reaching 50% of volume mix by 2030, which was unchanged, but added that by 2040, the company expects nearly 100% of its sales mix to be BEV. However, the company preannounced first half group operating profit of EUR 11 billion, more than it made in all of 2020 (EUR 10.6 billion), and updated its 2025 group operating margin objective to 8%-9% from 7%-8%.

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Company Profile

Business Description

Volkswagen is one of the world's largest automotive manufacturers. Automotive brands include Volkswagen passenger cars, Audi, Bentley, Bugatti, Lamborghini, Porsche, SEAT, and Skoda. Commercial vehicle brands include MAN, Scania, and Volkswagen. The company's financial services group provides dealer financing to support floor plans, consumer financing for vehicle purchases, and other financial services.

Contact
Berliner Ring 2
Wolfsburg, NI, 38440, Germany
T +49 536190
Sector Consumer Cyclical
Industry Auto Manufacturers
Most Recent Earnings Mar 31, 2021
Fiscal Year End Dec 31, 2021
Stock Type —
Employees 634,592

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