MøllerGruppen
Paul Hegna Vice President Corporate Communication and CSR +47 24033300 +47 90753146

International Press releases

9/28/2016

Terje Male appointed new Group CEO of MøllerGruppen

Terje Male (age 52) has been appointed new CEO of MøllerGruppen. He is currently CEO of Harald A. Møller, the Norwegian auto import company. Terje Male succeeds Pål Syversen, who announced his resignation after 13 years as Group CEO this summer.

“Terje Male is one of the most professional and experienced executives in our industry. We are very pleased that he has accepted to lead the Group in a time when the car industry faces extreme changes,” said MøllerGruppen Chairman Harald Møller.

The new Group CEO has been with MøllerGruppen for 17 years, the last four years as CEO of the Norwegian importer Harald A. Møller AS. He has previously held a number of executive positions with the Group, both on the import and retails sides. Mr Male has held responsibilities for activities in Norway as well as the Baltics. Prior to joining MøllerGruppen, he had for ten years various managerial positions with Volvo. Mr Male holds a Master’s degree in marketing and finance from Academy of Commerce in Oslo. 

“Terje Male knows the organization and our people extremely well, and he enjoys the complete trust of our employees as well as the Group’s owners. Nevertheless, the appointment is the result of a thorough process where both external candidates and executives from our own organization have competed for the position,” Chairman Harald Møller said.

“My ambition is to create new chapters in the MøllerGruppen success story. Even though I as the new Group CEO represent continuity, there is no doubt that the car industry faces perhaps its greatest challenges ever. I look forward to address these together with an extremely professional organization,” Terje Male said.

“We will need to master three profound change trends simultaneously: the car industry is in the midst of a major technology shift. Furthermore, the digitalization trend changes the functionality of our industry. And the evolving sharing economy will change how future consumers organize their car use. So my new role will encompass both continuity and renewal,” said MøllerGruppen’s new Group CEO.

Terje Male takes up his new position as Group CEO of MøllerGruppen from 1 January, 2017.

6/23/2016

Matthias Müller: We have launched the biggest change process in Volkswagen’s history

(Hanover/Wolfsburg, 2016-06-22) The “TOGETHER - Strategy 2025”, the Company’s vision for the next decade, was presented to shareholders for the first time at the 56th Annual General Meeting.

  • Speaking to around 3,000 shareholders in Hanover, Müller reaffirms  multi-billion euro investment in an “electrification initiative second to none in  the industry
  • Autonomous driving, digitalization and new business fields such as mobility services  are also focal areas
  • Volkswagen Group will successively equip new TSI and TFSI engines with   gasoline particulate filters from June 2017
  • Recall gathers speed with approval from the Federal Transport Authority for  more than 3.7 million vehicles
  • The Group is to become a model for a modern, transparent and successfully   company in terms of “Integrity & Legal Affair".

”Matthias Müller, the CEO of Volkswagen Aktiengesellschaft, presented “TOGETHER – Strategy 2025”, the Company's vision for the next decade, to approximately 3,000 shareholders at the 56th Annual General Meeting in Hanover in Hall 3 of Messe Hannover. At the same time, he reaffirmed that the Company would invest billions over the coming years in a major “electrification initiative second to none in the industry” as well as in autonomous driving, digitalization and new business fields such as mobility services.

“We are also continuing our intensive efforts to enhance the environmental compatibility of our diesel and gasoline models,” Müller said and then announced another milestone related to the internal combustion engine. “We will successively equip the Group's new TSI and TFSI engines with gasoline particulate filters. This initiative will begin with the 1.4 liter TSI engine* in the new VW Tiguan and the Audi A5 in June 2017. This will reduce particulate emissions by up to 90 percent. Up to 7 million Volkswagen vehicles could be equipped with this technology each year by 2022.”

Read more at Volkswagen AG

12/14/2015

Volkswagen Group delivers nine million vehicles to customers worldwide from January to November

Wolfsburg, December 11, 2015 – From January to November, the Volkswagen Group handed over 9.10 million vehicles to customers, including 833,700 units in November. “The Volkswagen Group and its brands are currently experiencing challenging times,” said Matthias Müller, Chairman of the Board of Management of Volkswagen Aktiengesellschaft, in Wolfsburg on Friday. “We are shouldering what is a very considerable challenge for the Group. At the same time, we are pleased that our customers are remaining loyal to us, especially in this situation, and continue to place their trust in us. This trust is our most important asset,” Müller continued. Precisely for this reason, the company would remain true to its objective of making the best and most innovative vehicles in the future. Once again, worldwide markets did not present a uniform picture. For example, economic conditions in Brazil and Russia also had an impact on deliveries by the Group. In contrast, the Group was able to grow deliveries in Europe and especially China, where there was a significant increase.

In the period to November, the Group recorded growth in deliveries in Western Europe, where 3.17 million customers took delivery of a new vehicle, representing a rise of 5.1 percent. In November, there were positive impulses from Germany (+4.4 percent), Spain (+15.3 percent) and Italy (+16.5 percent). On the other hand, the situation in Russia (-34.6 percent) remained tense. Although there were in some cases significant rises in the other markets of Central and Eastern Europe, it was not possible to entirely avoid a further downturn in the region  (- 6.2 percent).

Developments in the Americas were also challenging in November. Deliveries in North America (-7.6 percent) were severely affected by the largest individual market, the United States (- 15.3 percent). Deliveries in South America also continued to fall (-42.2 percent), especially as a result of the sales situation in Brazil (-51.0 percent).

In contrast, the Group was again able to record growth in the Asia-Pacific region (+4.6 percent). This increase was mainly due to a further rise in deliveries in China, the largest single market, where the Group delivered 5.5 percent more vehicles in November.


Overview of deliveries by the Volkswagen Group:

Deliveries to customers
by markets

November
2015

November
2014

Change.
(%)

Jan.- Nov.
2015

Jan.- Nov.
2014

Change.
(%)

Europe

325,200

321,900

+1.0

3,734,200

3,632,600

+2.8

Western Europe

270,400

263,400

+2.6

3,172,800

3,018,000

+5.1

      Germany

109,000

104,400

+4.4

1,193,900

1,146,100

+4.2

Central and Eastern Europe

54,800

58,400

-6.2

561,500

614,500

-8.6

      Russia

15,600

23,900

-34.6

157,900

249,600

-36.7

North America

73,100

79,200

-7.6

846,700

809,600

+4.6

      USA

45,300

53,500

-15.3

551,200

542,600

+1.6

South America

40,200

69,500

-42.2

524,000

727,000

-27.9

      Brazil

27,500

56,200

-51.0

364,800

574,300

-36.5

Asia-Pacific

359,100

343,200

+4.6

3,574,000

3,684,800

-3.0

      China

329,000

311,900

+5.5

3,219,400

3,339,100

-3.6

 

 

 

 

 

 

 

Worldwide

833,700

852,900

-2.2

9,095,900

9,256,400

-1.7

 

 

Deliveries to customers
by brands

November
2015

November
2014

Change.
(%)

Jan.- Nov.
2015

Jan.- Nov.
2014

Change.
(%)

Volkswagen Passenger Cars

496,100

508,400

-2.4

5,335,700

5,589,100

-4.5

Audi

147,700

146,200

+1.0

1,644,900

1,591,100

+3.4

ŠKODA

89,000

90,200

-1.4

968,900

955,300

+1.4

SEAT

32,400

33,300

-3.0

371,800

359,400

+3.5

Porsche

18,100

17,700

+2.1

209,900

169,200

+24.0

Volkswagen Commercial Vehicles

33,700

37,500

-10.2

390,300

401,400

-2.8

MAN

8,600

11,000

-22.3

92,700

107,700

-13.9

Scania

7,100

7,100

+0.3

70,100

71,300

-1.7

 

 

 

 

 

 

 

Volkswagen Group (total)

833,700

852,900

-2.2

9,095,900

9,256,400

-1.7

 

Note: You will find this text at: www.volkswagen-media-services.com.

12/14/2015

Volkswagen making good progress with its investigation, technical solutions, and Group realignment

Wolfsburg, December 10, 2015 – The Volkswagen Group’s realignment is well underway. The Group is making progress on all five of the priorities it set at the end of October: The technical solutions for customers in Europe have been devised, presented to the authorities, and positively evaluated by them. These solutions will begin to be implemented in January 2016. The emissions investigation is producing results, and initial consequences have already been drawn based on the findings to date. The implementation of the new structure is proceeding according to plan, and the process of developing a new strategy has commenced. The Chairman of the Supervisory Board of Volkswagen AG, Hans Dieter Pötsch, told the press in Wolfsburg today: “The Volkswagen Group is fully functional in every respect, even during these eventful days. How, and when we meet the current challenges is primarily – although not solely – up to us. In order to pass this test, we must make an enormous, common effort – and we are all ready to do so.” The Chairman of the Board of Management, Matthias Müller, said: “We are doing everything to overcome the current situation, but we will not allow the crisis to paralyze us. On the contrary, we will use it as a catalyst to make the changes Volkswagen needs.”

• Initial results of the emissions investigation available
• Approximately 450 external and internal experts involved in the investigations
• 100 terabytes of data secured – equivalent to information in approximately 50 million books
• Volkswagen will have future emissions tests evaluated independently
• Technical solutions for customers in Europe developed; implementation to begin in January 2016
• Group realignment making good progress

For the first time, the Company provided detailed commentary on the status of its investigation, which is being coordinated by a special committee of the Supervisory Board. Approximately 450 internal and external experts are involved in the investigations, which are being conducted in two phases. An internal review, being conducted by a task force of experts from various Group companies with a clearly defined mandate and a deadline, is focused on the mandate to Group Audit by the Supervisory Board and the Management Board to investigate relevant processes, reporting and monitoring systems, and the associated infrastructure. Group Audit will provide its findings to the external experts of Jones Day. The Supervisory Board has given this internationally respected law firm a parallel mandate to completely clarify the facts and responsibilities – i.e., among other things, it has been asked to conduct a forensic investigation. In connection with its work, Jones Day is being provided with operational support by the audit firm Deloitte.

Group Audit has identified process weak points
As reported on Wednesday, extensive internal investigations, which were subject to external independent review, did not confirm the suspicion of irregularities during the CO2 certification process. Now, the first significant findings in the investigation of the nitrogen oxide (NOx) issue are available. Group Audit’s examination of the relevant processes indicates that the software-influenced NOx emissions behavior was due to the interaction of three factors:

• The misconduct and shortcomings of individual employees
• Weaknesses in some processes
• A mindset in some areas of the Company that tolerated breaches of rules.

It is clear that, in the past, deficiencies in processes have favored misconduct on the part of individuals. This is true, for example, for test and certification processes affecting our engine control devices, which were not suited to preventing use of the software in question. Group Audit has suggested specific remedies to correct this. We are concentrating on structuring these processes more transparently and systematically. For example, in the future, software for engine control devices will be developed more strictly in accordance with the 4-eyes principle. In addition, the bodies responsible for the release of such software are being reorganized. They will be given more sharply defined and binding powers and responsibilities. Deficiencies were also found in reporting and monitoring systems. The main problem there was that responsibilities were not sufficiently clear. Volkswagen will now further sharpen them. Group Audit also found deficiencies in some areas of Volkswagen’s IT infrastructure. These deficiencies will also be remedied. Volkswagen will introduce IT systems that allow individual processes to be monitored with greater efficiency and transparency. This will simultaneously reduce our dependence on individuals when problematic processes have to be identified and, if necessary, escalated. As Pötsch stated: “Group Audit’s investigation is producing valuable findings, which will help us create a structure that, rather than favoring breaches of regulations, will prevent them, or at least allow them to be detected early on.”

The Company has already drawn a key conclusion based on Group Audit’s findings, namely that its testing practice must undergo comprehensive changes.Volkswagen has decided that in the future emissions test will be evaluated externally and independently. In addition, randomly selected real-life tests to assess emissions behavior on the road will be introduced. Chairman of the Supervisory Board Pötsch stated: “We hope that this will help Volkswagen regain lost trust.”

More time is required for the external investigation
Although Group Audit’s analysis of the processes will be concluded shortly, Jones Day will need well into next year in order to finish its work. The external investigators will need more time for their investigation, for two reasons. The first is that they have a massive volume of data to screen. At present, 102 terabytes of information have been secured, which is the equivalent of the information contained in approximately 50 million books. More than 1,500 electronic data storage units have been collected from approximately 380 employees. The second reason is that their investigation of the facts takes legal responsibility into account. Therefore, their findings must not only be plausible and consistent, but must also hold up in court. Volkswagen plans to provide a status update on the external investigation at its Annual General Meeting on April 21, 2016.

The information that has been screened to date has largely explained the origin and development of the nitrogen oxide issue. It proves not to have been a one-time error, but rather a chain of errors that were allowed to happen. The starting point was a strategic decision to launch a large-scale promotion of diesel vehicles in the United States in 2005. Initially, it proved impossible to have the EA 189 engine meet by legal means the stricter nitrogen oxide requirements in the United States within the required timeframe and budget. This led to the incorporation of software that adjusted nitrogen oxide emission levels according to whether vehicles were on the road or being tested. Later, when an effective technical process was available to reduce NOx emissions, it was not employed to the full extent possible. On the contrary, the software in question allowed the exhaust gas treatment additive “AdBlue” to be injected in variable amounts such that the NOx values were particularly low when vehicles were in the test bay, but significantly higher when vehicles were on the road.

Hans Dieter Pötsch stressed that, “No business transaction justifies overstepping legal and ethical bounds.” As a first step, nine managers who may have been involved in the manipulations were suspended. Pötsch emphasized: “I here and now guarantee that we will pursue our thorough investigation to its conclusion. I vouch for this personally, as does the entire Supervisory Board of Volkswagen AG.”

Technical solutions, which have been positively evaluated by the German Federal Motor Transport Authority (“Kraftfahrtbundesamt”), are now available for the European variants of the EA 189 engine type affected. Volkswagen is thus ensuring that the models affected in Europe will meet all legal requirements in the future. The costs of implementing these solutions will be manageable in technical, manufacturing, and financial terms. The software of the 2.0 and 1.2 liter TDI will be updated. For the 1.6 liter TDI, a so-called flow transformer will be used that increases the measurement precision and, in combination with redesigned software, will optimize injection quantity.

Now that the technical solutions have been approved, Volkswagen is working intensely on plans to implement them. The recall of the highest-volume variant, the 2.0 liter TDI, will begin in January 2016. The recall of the 1.2 liter TDI is currently scheduled to begin in the second quarter. The implementation phase for the 1.6 liter models is planned to begin in the third quarter to allow time to prepare for the hardware modification. Under the current plan, the entire initiative will take at least all of calendar year 2016. Matthias Müller, Chairman of the Board of Management, promised: "Volkswagen will not rest until this matter has been resolved once and for all to our customers’ satisfaction.” Volkswagen will inform the owners of the affected vehicles individually as to when their vehicles will be updated. Volkswagen guarantees that the solutions will be implemented free of charge. The company waives any statute of limitations for the technical solutions, and will provide an appropriate replacement vehicle if required.

Due to far stricter nitrogen oxide limits in the United States, it is a greater technical challenge to retrofit the vehicles such that all applicable emissions limits can be met with one and the same emissions strategy. To this end, Volkswagen is cooperating closely with the United States Environmental Protection Agency (EPA) and the California Air Resources Board(CARB). The solution designed for North America will be presented as soon as it has been approved by the responsible authorities.

Implementation of the new Group structure commenced
Parallel to overcoming the crisis, Volkswagen is also instituting a comprehensive new alignment that affects the structure of the Group, as well as its way of thinking and its strategic goals.

Volkswagen will be managed in a more decentralized fashion in the future, and its brands and regions will be granted more independence. The Group’s Board of Management is fully focused on its core task: advancing the major, global issues for the future, as well as synergies, controls, and strategy. Volkswagen will have significant input to the technical changes that have a major impact on its own business model, becoming more agile, and streamlining its decision-making processes. In addition, Volkswagen will become leaner and improve cost efficiency. All these structural changes ultimately aim to reduce managerial complexity and ensure that the Group can be effectively led over the long term.

At an organizational level, with the appointment of Dr. Christine Hohmann-Dennhardt, the Integrity & Law area will be represented as its own department on the Group’s Board of Management in the future – a clear indication that these issues are extremely important to Volkswagen. Significantly more importance will be attached to digitalization, which will report directly to the Chairman of the Board of Management. Overall, direct reports will be reduced from more than 30 to 19.

The renewal of personnel in the Group has recently again been given new impetus. Since the beginning of 2015, the Group’s Board of Management has seen six new members join, seven of the brands have had their top personnel changed, and eight departments falling within the CEO’s area of responsibility now have new heads. Müller stated: "The team with which we wish to address the challenges of the coming months and years is in place.” The details of the new structure are to be worked out in the first quarter of 2016. The new structure will be in place Group-wide by the start of 2017.

New mindset initiated
Müller noted: “We can have the best people, and a great organization, but we can do nothing without the right attitude and mentality.” During the upcoming process of change toward a new way of thinking, Volkswagen can build on its traditional strengths: quality consciousness, strong identification with its vehicles, and a high degree of social responsibility. According to Müller, the future will be about more open discussions, closer cooperation, and a willingness to allow mistakes if they are understood as an opportunity to learn. The Chairman of the Board of Management stated, “We don’t need yes-men, but managers and engineers who make good arguments in support of their convictions and projects, who think and act like entrepreneurs. I am calling for people who are curious, independent, and pioneering. People who follow their instincts and are not merely guided by the possible consequences of impending failure. In short: the future at Volkswagen belongs to the bold. We need a little more Silicon Valley, coupled with the competence from Wolfsburg, Ingolstadt, Stuttgart, and the other Group locations.”

New strategic destination under development
In addition, Volkswagen has initiated development of a new strategic target: “Strategy 2025”, with which Volkswagen will address the main issues for the future, is scheduled to be presented in mid 2016.Müller explained, “We are realigning Volkswagen strategically and technologically. Our goal is to courageously and decisively participate in shaping the future of mobility.” Among other things, the Group aims to achieve a significant expansion of its sales outside of its current core business. Furthermore, a digitalization and an electrification offensive are being prepared.

In parallel, Volkswagen is currently doing everything it can to limit the effect the current situation has on its business performance. The operating business is meeting expectations, and the 2015 annual forecast, which was updated at the end of October, remains unchanged. The sales figures are very mixed as regards the various markets and brands. Müller explained, “Overall, the situation is not dramatic, but, as was to be expected, it's tense.

”In summary, the Chairman of the Board of Management stated: “Although the current situation is serious, this company will not be broken by it. We have a clear mission: we will create a new, better, and stronger Volkswagen. A company that uses its strengths to make the transition to the new world of automobiles. A company that now releases new forces, and takes better advantage of its huge potential. And, last but not least, a company that will be successful over the long term on the basis of strong values.”

12/9/2015

CO2 issue largely concluded

Wolfsburg, 9 December 2015 – Just a month after questions relating to the CO2 figures measured on some of the Group's models arose, Volkswagen has largely concluded the clarification of the matter.

• No unlawful change to the stated fuel consumption and CO2 figures found to date
• Only a small number of the model variants of new cars will have the catalogue figure slightly adjusted.

Following extensive internal investigations and measurement checks, it is now clear that almost all of these model variants do correspond to the CO2 figures originally determined. This means that these vehicles can be marketed and sold without any limitations. The suspicion that the fuel consumption figures of current production vehicles had been unlawfully changed was not confirmed. During internal remeasurements slight deviations were found on just nine model variants of the Volkswagen brand.

These model variants will be remeasured by a neutral technical service under the supervision of the appropriate authority by Christmas. In cases where the correctness of original figures is confirmed, there will be no consequences. These cars can be offered for sale by dealers without any reservations. In the case of any deviations, the figures will be adjusted in the future in the course of the normal processes as required.

Volkswagen presented these results to the investigation commission of the Federal Government and the Federal Motor Transport Authority (KBA). The figure of approximately 800,000 vehicles under suspicion originally published by the Volkswagen Group has not been confirmed. The deviations found in the figures for only nine model variants amount to a few grams of CO2 on average, corresponding to increased cycle consumption in the NEDC of approximately 0.1 to 0.2 litres per 100 kilometres. With an annual production of approximately 36,000 vehicles, these model variants correspond to around only 0.5 per cent of the volume of the Volkswagen brand. The list of the nine model variants can be found at www.volkswagen-media-services.com.

The Group's subsidiaries Audi, SKODA and SEAT have also agreed a similar procedure with the approval authorities responsible for the vehicles initially considered.

Customers' real-world consumption figures do not change and neither are any technical vehicle modifications necessary. Against this background, the negative impact on earnings of €2 billion that was originally expected has not been confirmed.

Whether we will have a minor economic impact, depends on the results of the remeasurement exercise.

11/16/2015

Volkswagen Group delivers 8.26 million vehicles to customers worldwide in first 10 months

Wolfsburg, November 13, 2015 – From January to October, the Volkswagen Group handed over 8.26 million vehicles to customers. Worldwide deliveries did not present a uniform picture. Deliveries by the Volkswagen brand in certain markets reflected especially the current diesel issue as a result of sales stoppages for the vehicles affected. Deliveries therefore fell in October (-5.3 percent). At the same time, the Audi premium brand grew deliveries (+2.0 percent), and there was a significant increase at sports car manufacturer Porsche (+18.2 percent). As regards the various markets, there was a slight downward trend in Europe (-1.5 percent) at the same time as growth in North America (+6.8 percent). While the market situation in South America remains challenging, the Group deliveries in China rose again slightly in October (+1.6 percent).

In the entire Asia-Pacific sales region, the Group delivered 3.21 million vehicles in the first 10 months of the year, with China, the largest single market, accounting for 2.89 million units.

The Group also recorded growth in North America, with 773,600 units delivered from January to October. Most of these vehicles, 505,900 units, were handed over in the United States, representing growth of 3.4 percent. In South America, where the situation remained challenging, deliveries by the Group fell markedly (-26.4 percent). Deliveries in Brazil, at 337,300 units, were the key factor in this development.

In the region of Western Europe, 2.90 million customers received a new vehicle in the year to October, representing growth of 5.4 percent. The situation in Germany remained positive, with deliveries up by 4.1 percent. The Volkswagen Group also recorded growth in other Western European markets. There were significant rises in Spain (+16.3 percent) and Italy (+8.6 percent). As a result of the tense situation in Russia (-37.0 percent), a further downturn in deliveries was recorded in Central and Eastern Europe. In the period to October, the Group handed over 506,700 vehicles in this region.

Overview of deliveries by the Volkswagen group:

Deliveries to customers
by markets

October
2015

October
2014

Change.
(%)

Jan.- Oct.
2015

Jan.- Oct.
2014

Change.
(%)

Europe

335,000

340,100

-1.5

3,408,800

3,310,700

+3.0

Western Europe

280,000

283,400

-1.2

2,902,200

2,754,600

+5.4

      Germany

113,700

113,200

+0.5

1,084,900

1,041,700

+4.1

Central and Eastern Europe

55,000

56,800

-3.0

506,700

556,100

-8.9

      Russia

15,000

21,700

-31.0

142,300

225,700

-37.0

North America

80,500

75,300

+6.8

773,600

730,500

+5.9

      USA

52,400

49,500

+5.7

505,900

489,100

+3.4

South America

44,000

71,100

-38.1

483,800

657,500

-26.4

      Brazil

28,700

54,600

-47.4

337,300

518,200

-34.9

Asia-Pacific

336,700

338,300

-0.5

3,214,900

3,341,600

-3.8

      China

312,200

307,200

+1.6

2,890,400

3,027,200

-4.5

 

 

 

 

 

 

 

Worldwide

831,300

861,700

-3.5

8,262,000

8,403,500

-1.7

 

Deliveries to customers
by brands

October
2015

October
2014

Change.
(%)

Jan.- Oct.
2015

Jan.- Oct.
2014

Change.
(%)

Volkswagen Passenger Cars

490,000

517,400

-5.3

4,839,600

5,080,700

-4.7

Audi

149,200

146,200

+2.0

1,497,200

1,444,900

+3.6

ŠKODA

88,500

91,000

-2.7

880,000

865,100

+1.7

SEAT

31,000

32,000

-3.1

339,400

326,000

+4.1

Porsche

18,700

15,800

+18.2

191,800

151,500

+26.6

Volkswagen Commercial Vehicles

35,200

39,000

-9.8

356,400

363,900

-2.0

MAN

9,700

10,900

-11.4

84,100

96,600

-12.9

Scania

8,000

8,000

+0.5

63,000

64,200

-1.9

 

 

 

 

 

 

 

Volkswagen Group (total)

831,300

861,700

-3.5

8,262,000

8,403,500

-1.7

 


  Note: This Text is to be found at www.volkswagen-media-services.com.

11/4/2015

Clarification moving forward: internal investigations at Volkswagen identify irregularities in CO2 levels

Wolfsburg, November 3, 2015 – The Volkswagen Group is moving forward with the clarification of the diesel issue: during the course of internal investigations irregularities were found when determining type approval CO2 levels. Based on present knowledge around 800,000 vehicles from the Volkswagen Group could be affected. An initial estimate puts the economic risks at approximately two billion euros. The Board of Management of Volkswagen AG will immediately start a dialog with the responsible type approval agencies regarding the consequences of these findings. This should lead to a reliable assessment of the legal, and the subsequent economic consequences of this not yet fully explained issue.

Matthias Müller: “Relentless and comprehensive clarification is our only alternative.
Around 800,000 Group vehicles could be affected
Initial estimate puts economic risks at approximately 2 billion euros 

Under the ongoing review of all processes and workflows in connection with diesel engines it was established that the CO2 levels and thus the fuel consumption figures for some models were set too low during the CO2 certification process. The majority of the vehicles concerned have diesel engines.

“From the very start I have pushed hard for the relentless and comprehensive clarification of events. We will stop at nothing and nobody. This is a painful process, but it is our only alternative. For us, the only thing that counts is the truth. That is the basis for the fundamental realignment that Volkswagen needs”, Matthias Müller, CEO of Volkswagen Aktiengesellschaft, said, and added. “The Board of Management of Volkswagen AG deeply regrets this situation and wishes to underscore its determination to systematically continue along the present path of clarification and transparency.”

In cooperation with the responsible authorities, Volkswagen will do everything in its power to clarify the further course of action as quickly as possible and ensure the correct CO2 classification for the vehicles affected.

The safety of the vehicles is in no way compromised. A reliable assessment of the scale of these irregularities is not yet possible. An initial estimate puts the economic risks at approximately two billion euros.

Volkswagen Group Communications

9/17/2013

Volkswagen becomes world’s most sustainable automotive group

For the first time, the Volkswagen Group has been listed as the most sustainable automaker in the world’s leading sustainability ranking, according to a press release at the company's home page.

RobecoSAM AG classed the company as the Industry Group Leader in the automobiles and components sector in this year’s review of the Dow Jones Sustainability Indices (DJSI). The review analyzed the corporate economic, environmental, and social sustainability performance of a total of 31 automotive companies, seven of them from Europe, with reference to criteria such as environmental and climate protection strategy, innovation management and corporate social responsibility.

The full version from Volkswagen home page

3/14/2013

Volkswagen Group achieves key milestones in 2012

The Volkswagen Group successfully mastered the challenges posed by a difficult market environment in 2012, again posting record vehicle sales, sales revenue and earnings. "Volkswagen is feeling the headwinds –especially in Europe. Nevertheless we remain guardedly confident", comments Prof. Dr. Martin Winterkorn, Chairman of the Board of Management of Volkswagen Aktiengesellschaft.

The Volkswagen Group not only turned in a compelling operational performance in the past fiscal year – it also met its targets for major strategic projects: The Porsche brand has been wholly owned by Volkswagen since August 1, 2012 and Ducati, a legendary motorcycle brand, has now joined the Group family. A leading mobility group needs a strong commercial vehicles business – and the alliance between MAN, Scania and Volkswagen Commercial Vehicles means that the groundwork for this has been laid. The launch of the Modular Transverse Toolkit in 2012 ushered in a new era in passenger cars. In addition, Volkswagen became the first carmaker to commit to the CO2 target of 95g/km by 2020.

CFO Hans Dieter Pötsch was also satisfied with 2012. “We continued our successful course and further strengthened our market position thanks to our high profitability”, said Pötsch. “Our growing presence in all key markets, our outstanding brand portfolio, our attractive product range and our broad financial services offering combined with our sound finances and forward-looking management are contributing to the systematic implementation of our Strategy 2018.” 

Group figures for 2012
The Volkswagen Group’s sales revenue increased by 20.9 percent in fiscal year 2012 to €192.7 billion (previous year: €159.3 billion). Consolidated operating profit rose slightly to a record €11.5 billion (€11.3 billion). The consolidated operating profit does not include the €3.7 billion (€2.6 billion) proportional share of the operating profit recorded by the Chinese joint ventures. These companies are included in the consolidated financial statements using the equity method and are therefore reflected in the Group’s financial result, which rose by €6.3 billion last year to €14 billion. The improvement in the financial result is primarily attributable to noncash effects of €12.3 billion from the final valuation of the put/call rights relating to Porsche as of July 31, 2012, as well as from the remeasurement of the existing shares of Porsche held at the contribution date. All in all, the Volkswagen Group’s profit before tax last year rose by approximately €6.6 billion to €25.5 billion. Profit after tax amounted to €21.9 billion (€15.8 billion).

In view of the Company’s continued success, the Board of Management and the Supervisory Board will be proposing to the Annual General Meeting on April 25, 2013 to increase the dividend to €3.50 (€3.00) per ordinary share and €3.56 (€3.06) per preferred share.

At 16.6 percent, the return on investment for the Automotive Division was down slightly on the previous year (17.7 percent), primarily as a result of the increase in invested capital, but was still significantly above its minimum required rate of return of 9 percent. The return on equity in the Financial Services Division declined slightly to 13.1 percent (14.0 percent). “We aim to safeguard the quality of our earnings for the long term. In this context, we will take care to further increase profitability in all regions and to establish ourselves on new growth markets”, said Pötsch.

Net liquidity in the Automotive Division remained sound at €10.6 billion at the end of December 2012 (year-end 2011: €17.0 billion). This gives the Group the necessary financial stability and flexibility to systematically implement its Strategy 2018. Reasons for the decline include the contribution in full of Porsche’s automotive business, the acquisition of Ducati and the increased stake in MAN SE. The ratio of capital expenditure to sales revenue rose slightly (0.4 percentage points) to 5.9 percent. In addition to its production facilities, 

Volkswagen invested primarily in the expansion and ecological focus of its model range, and in the modularization of its vehicle concepts.

Brands and business fields
Despite the tough environment, the Volkswagen Group outperformed the market in 2012, growing in almost all key regions. Deliveries climbed 12.2 percent to 9.3 million vehicles. This saw the Group’s global share of the passenger car market rise to 12.8 percent (12.3 percent).

The Volkswagen Passenger Cars brand delivered 5.7 million vehicles to customers, an increase of 12.7 percent compared with the previous year. The brand’s operating profit amounted to €3.6 billion (€3.8 billion), down 4.1 percent year-on-year. This was due in part to upfront expenditures for the Modular Transverse Toolkit and startup costs for the new Golf. 

2012 was another record year for the Audi brand, which delivered 1.5 million (1.3 million) vehicles. Operating profit rose slightly by 0.6 percent to €5.4 billion (€5.3 billion) and the brand’s operating return on sales was 11.0 percent (12.1 percent). 

ŠKODA’s sales increased by 6.8 percent to 939,000 (879,000) vehicles. At €712 million (€743 million), operating profit was down slightly on the prior-year figure due to market factors.

Volkswagen Commercial Vehicles delivered 550,000 (529,000) units, an increase of 4.1 percent. Operating profit declined by 6.1 percent to €421 million (€449 million). 

Outlook
Volkswagen is starting 2013 from a position of strength, despite tougher competition and difficult economic conditions. Excluding MAN and Scania, 1.4 million vehicles were delivered worldwide in the first two months of the year. At 8.3 percent, the Group grew more strongly than the market. “Volkswagen has everything it needs to continue its successful trajectory of recent years even under different circumstances”, said Winterkorn, adding: “We want to lead the Volkswagen Group to the top of the automotive industry by 2018 – profitably, sustainably and permanently.” In 2013, the Volkswagen Group’s brands will launch a large number of fascinating new models and so help further expand its strong position on the global markets. 

Winterkorn was guardedly confident that the Group will outperform the market as a whole and deliveries to customers will increase. However, Volkswagen is not completely immune to the intense competition and the impact this has on business. The modular toolkit system, which is being continuously expanded, will have an increasingly positive effect on the Group’s cost structure. The Volkswagen Group’s 2013 sales revenue is expected to exceed the prior-year figure.

Given the ongoing uncertainty in the economic environment, the goal for operating profit is to match the prior-year level in 2013. Positive effects from its attractive model range and strong market position will be curbed by increasingly stiff competition in a challenging market environment. Disciplined cost and investment management and the continuous optimization of Volkswagen’s processes remain an integral part of the Strategy 2018.

3/14/2013

Volkswagen presents Group publications as apps

On the occasion of its Annual Media Conference on March 14, the Volkswagen Group published its latest Annual Report and the "Navigator" facts and figures brochure as separate interactive apps. These digital apps provide users with direct access to information plus a range of interactive features about the Volkswagen Group world which can be downloaded to mobile devices.

The magazine section of the award winning and much acclaimed Volkswagen Aktiengesell-schaft Annual Report contains stories from the Group world under the motto of "Experience D(r)iversity". The iPad app, which is available as a free download from the Apple App Store, transforms the magazine into a multi-media experience: Films, sounds, picture galleries and animations complement the journalistic articles on brands, markets and vehicles. The financial section specially optimized for the iPad features user-friendly navigation that facilitates retrieval of key performance data and information. The app is available in English and German.

"For Volkswagen, digital applications play a very important role in corporate communications" says Stephan Grühsem, General Representative of Volkswagen AG, Head of Group Communications, External Relations and Investor Relations. "Our Group publications do not just make fascinating reading, but can be transformed into a holistic experience through moving images, authentic sound bites and interactive elements. This gives them an entirely new quality".

The Volkswagen Navigator, a compendium of key facts and figures on the Group, is available as an app for the first time at this year's Annual Media Conference. One highlight of this interactive version available for tablets and desktops is a world map presenting the Group, its sites, brands and models to the user.

The Navigator app can be downloaded from http://navigator.volkswagenag.com.

You can get an impression of the Volkswagen Annual Report app on http://vw-ar-app-2012.3st.de.

1 2 > »