Europe, North America sales boost VW’s 2023 operating profit

BERLIN: German auto giant Volkswagen said an increase in sales in North America and Europe had lifted its operating profits in 2023.

The figure, closely watched by analysts to assess a company’s underlying performance, rose to 22.6 billion euros (US$24.4 billion), up 2.1 per cent on 2022.

The results were carried by a roughly 15-per cent increase in revenues on the previous year, up to 322.3 billion euros on the back of “increased deliveries in Europe and North America”, according to the group.

In all, Volkswagen delivered some 9.2 million cars to customers in 2023, an improvement of 12 per cent.

The auto giant’s units sold rose by 20 per cent in Europe and in the North America region by 18 per cent.

In China, Volkswagen’s single largest market, the group recorded a two-per cent increase in deliveries “despite a difficult market”.

Volkswagen has fallen behind domestic competitors in China, losing its title as the best-selling auto brand to BYD.

The Chinese rival’s success making electric cars has likewise underlined the challenges Volkswagen faces when it comes to shifting production away from traditional internal combustion engines.

Volkswagen CEO Oliver Blume said in a statement that 2023 had been an “important year” for the

Our flexibility is our strength: We will continue to invest in the electrification and digitalisation of our product range, while keeping our combustion vehicles competitive during the transition.

Arno Antlitz

group as he guided the group’s new strategy.

Blume last year identified China and the US as the key markets for Volkswagen to grow in, while looking to gradually increase profit margins.

The 2023 figures showed that Volkswagen had gained “robustness”, CFO Arno Antlitz said in the statement.

“Our flexibility is our strength: We will continue to invest in the electrification and digitalisation of our product range, while keeping our combustion vehicles competitive during the transition,” Antlitz said.

Volkswagen sold 771,000 batterypowered cars in 2023, 35 per cent more than the previous year, but still only 8.3 per cent of the group’s total sales.

Looking ahead, the German auto giant hoped to see revenues rise by up to five per cent in 2024.