Volkswagen posts recovery from impact of pandemic

Worldwide
Published:  03 November, 2020

The Volkswagen Passenger Cars brand said it has recovered noticeably in the third quarter of the year, when 1.5 million vehicles were delivered worldwide.

However, for the first nine months of the year, deliveries decreased 18.6%. According to the Volkswagen brand, the gradual recovery is also reflected in the brand’s financial key performance indicators; sales revenue amounted to €47.2 billion after nine months, down 27.9% on the previous year while for the first six months of 2020, the brand recorded a 35.3% drop in sales revenue. For the third quarter, the car brand posted an operating result before special items of €522 million, hence, placing the brand back in positive territory. Volkswagen brand said the nine-month operating result before special items also improved accordingly to €–1billion, compared with €–1.5 billion for the first six months of the year.

“Despite the ongoing challenges from the Covid-19 pandemic, the brand returned to profitability in the third quarter. This is above all due to the systematic measures taken to cut costs and secure liquidity and the dedicated efforts of our employees, who gave their all to catch up on the backlog following the temporary shutdown in spring”, said Alexander Seitz, CFO, Volkswagen. “In the final quarter, we are doing everything in our power to get the brand’s full-year operating result into positive territory.”

The German manufacturer said the gradual recovery in delivery figures after the significant falls at the beginning of the year continued in the course of the third quarter. While the Volkswagen Passenger Cars brand recorded single-digit percentage declines in July and August compared with the prior-year months, in September the brand was already almost at the previous year’s level, at –0.7%. The gradual improvement in sales have been attributed, in particular, to the new ID.301 compact electric vehicle, of which around 20,000 units have already been delivered, as well as the brand’s plug-in hybrids, which are said to be in high demand, and the significant pick-up in demand for the Golf 8.