Volkswagen AG is a German multinational automotive manufacturer headquartered in Wolfsburg, Lower Saxony. As of 2024, it is the world’s second-largest automaker by sales and the largest by revenue, with €324.7 billion in sales and €12.4 billion in net income. The company operates under the Volkswagen Group umbrella, encompassing brands such as Volkswagen, Audi, Porsche, Bentley, Bugatti, Lamborghini, SEAT, Škoda, and Ducati. Volkswagen also holds significant stakes in Traton and Porsche AG.
Executive Summary
- Ticker: VOW3 (Frankfurt) / VOWI (Vienna)
- Market Cap: Approximately €52.9 billion as of May 2025
- 2024 Revenue: €324.7 billion
- 2024 Net Income: €12.4 billion
- Operating Income: €19.1 billion
- Employees: 682,724
- CEO: Oliver Blume
Business Segments
Volkswagen operates through four primary divisions:
- Passenger Cars & Light Commercial Vehicles: The core business, contributing 68.9% of sales.
- Financial Services: Including leasing, financing, and insurance, accounting for 16.7% of sales.
- Commercial Vehicles: Representing 13.1% of sales.
- Power Engineering: Comprising 1.2% of sales.
Financial Performance
- 2024 Revenue: €324.7 billion, in line with expectations.
- Operating Result: €19.1 billion, slightly below the previous year’s €22.5 billion, due to higher depreciation and upfront expenditures for new products.
- Net Income: €12.4 billion.
- Net Liquidity: €36.1 billion, within the forecast range.
Strategic Initiatives
- Electrification Strategy: Volkswagen plans to launch around 30 new models by 2025, focusing on China and North America.
- Cost Reduction Measures: The company has agreed to reduce its workforce by over 35,000 and cut billions in costs while avoiding factory closures in Germany.
- Joint Venture with Rivian: Volkswagen and Rivian announced a joint venture to develop electric vehicles, aiming to strengthen their position in the EV market.
Risks & Considerations
- Market Competition: Intensifying competition from Chinese manufacturers and other global automakers.
- Regulatory Challenges: Potential EU carbon emissions fines and restructuring costs.
- Geopolitical Factors: Uncertainty regarding potential tariffs from the U.S. and other trade tensions.
Conclusion
Volkswagen AG presents a compelling investment opportunity with its strong financial performance, strategic initiatives in electrification, and commitment to cost reduction. While facing challenges from market competition and geopolitical factors, the company’s diversified portfolio and proactive strategies position it well for sustainable growth.