A promising year 2024: the Volkswagen group shows strong profitability for its brands

Here is a miracle worthy of a bad magic trick: after years of juggling scandals, capricious electricity, and competition that doesn’t look like a walk in the park, the Volkswagen group is serving us a 2024 with profitability that tickles 1%. Yes, you read that right, 1%! No need for a finance degree to know that this isn’t a jackpot, but in today’s automotive world, it’s a small victory to be downed quickly. Brands like Cupra and Škoda, often underestimated, shine like beacons in the fog, while Volkswagen, Audi, Porsche, and even the extravagant Bentley, Bugatti, Lamborghini, and Ducati continue their epic battle to stay in the race. All this under the watchful eye of an Oliver Blume who doesn’t let go.

Volkswagen, Audi, Porsche and the revenue symphony in 2024

Ah, Volkswagen, this giant that has managed to turn car sales into a true strategic marathon. In 2024, the flagship brand has managed to align profitability just above 1%, driven by a product plan as dynamic as a pub during rush hour. It’s the new vehicle, with a little assistant named parts sales, that saved the day. Paradoxically, the sale of used cars (UC) has returned to normal post-Covid, which had the effect of a stone in the pond, slightly reducing the financial enthusiasm of the network.

The issue? Financial charges, that relentless parasite, have not stopped gnawing at profits. Like an old kettle that refuses to turn off, they continue to weigh on the results. Dorothée Bonassies, director of Volkswagen France, insists on the importance of redoubling efforts to maintain this fragile balance in 2025. In short, not everything is rosy on the red carpet of Wolfsburg.

The awakening of Spanish brands: Seat and Cupra in great shape

Because not everyone is Volkswagen in life, the little sisters of the group, Seat and especially Cupra, are not just content to be also-rans. Seat boasts solid sales with over 22,000 vehicles, representing a growth of 25.1%. But it’s Cupra that steals the show, with nearly 17,500 registrations and a growth of 17.4%. And even if we’re not told everything, we know they are both flirting with profitability above the famous 1% — which, in this market, is almost an achievement.

The secret to this success? A clever positioning between generalist and premium, where Cupra showcases an average price of around 47,000 euros. It almost seems as if customers have decided to treat themselves, as if they are saying: "OK, we want a car, but let’s make it a bit classy." And in after-sales, the duo sparkles thanks to enhanced customer loyalty, particularly driven by Cupra. The only shadow on the horizon is a used car market grumpier than usual, but at least the new car sales save face.

Škoda, the quiet force driving profitability

In a world where everything moves faster and faster, Škoda remains that old German locomotive moving forward quietly but with devilish efficiency. The Czech brand reports a profitability of 1.1%, driven by strong growth in new vehicle volumes and a well-padded margin from financing. Julien Bessière, its director in France, knows they must stay the course, especially in the corporate market, while trying to attract individuals a bit more.

Škoda's electric offensive includes models like the Enyaq and the Elroq, with over 50% of sales in plug-in hybrids (PHEV). While new regulations and increased penalties complicate matters, Škoda seems to hold all the cards to maintain its position at the top. The company has even increased its workforce in dealerships by 12%, proving that it is betting big on 2025. A bet on the future that, if realized, will likely make others envious within the group.

Electrification and the challenges of a rapidly changing industry

The electric revolution has yet to finish shaking up Volkswagen, Audi, Porsche, Lamborghini, Bentley, Bugatti, and even Ducati. This almost obsessive quest for electrification pushes each brand to showcase its strengths, like a gentleman brandishing his umbrella in a storm. Despite fluctuating demand in Europe and a Chinese competition that is steadily nibbling at their heels, the strategies seem to hold firm.

But don’t be fooled, beneath the album of sales praises lies a brutal reality: margins are tightening, regulations are getting more stringent, and the slightest misstep could turn fragile profitability into a monumental fiasco. Volkswagen Commercial Vehicles, for their part, play their part, often less melodious but oh so essential in this industrial symphony.

Source: journalauto.com

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