Brands and Business Fields

Our brands achieved a new vehicle sales record in 2016 amid fierce competition in a market environment that remained challenging. Special items – particularly from the diesel issue – again affected the operating profit.

GROUP STRUCTURE

The Volkswagen Group consists of two divisions: the Automotive Division and the Financial Services Division. The Automotive Division comprises the Passenger Cars, Commercial Vehicles and Power Engineering Business Areas. We report on the Passenger Cars segment and the reconciliation in the Passenger Cars Business Area. The Commercial Vehicles Business Area and Power Engineering Business Area correspond to the segments of the same name. Accordingly, the activities of the Automotive Division comprise the development of vehicles and engines, the production and sale of passenger cars, light commercial vehicles, trucks, buses and motorcycles, as well as the genuine parts, large-bore diesel engines, turbomachinery, special gear units, propulsion components and testing systems businesses. The Ducati brand is allocated to the Audi brand and thus to the Passenger Cars Business Area. The Financial Services Division, which corresponds to the Financial Services segment, combines dealer and customer financing, leasing, banking and insurance activities, fleet management and the mobility offerings.

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VOLKSWAGEN GROUP

Division

 

Automotive

 

Financial Services

 

 

 

 

 

Brand/Business Field

 

Volkswagen Passenger Cars

 

Audi

 

ŠKODA

 

SEAT

 

Bentley

 

Dealer and customer financing
Leasing
Direct bank
Insurance
Fleet management
Mobility offerings

 

 

Porsche

 

Volkswagen Commercial Vehicles

 

Scania

 

MAN

 

Others

 

In this chapter, we present the key volume and financial data relating to the Group brands and to Volkswagen Financial Services. In light of the considerable importance of the development of business in China for the Volkswagen Group and the continuing growth in the world’s largest single market, we also report on business developments and the results of our activities in China in this chapter.

The production figures and deliveries to customers are presented separately by brand and their models, i.e. by product line. Unit sales figures refer to models sold by the various brand companies, including vehicles from other Group brands. In some cases, there are marked differences between delivery figures and unit sales as a result of our business development in China.

In addition, we explain unit sales and sales revenue in the Europe/Other markets, North America, South America and Asia-Pacific regions.

KEY FIGURES BY MARKET

Fiscal year 2016 was affected especially by the diesel issue. In particular, charges as a result of legal risks led to special items totaling €−7.5 (−16.9) billion. At €14.6 (12.8) billion, the operating profit before special items was up on the prior-year level.

The market remained challenging for the Volkswagen Group in the 2016 fiscal year, and competition was fierce. Unit sales reached a new record of 10.4 (10.0) million vehicles. Sales revenue rose by 1.9% to €217.3 billion.

In the Europe/Other markets region, we sold 4.6 million vehicles. This was 2.5% more than in the previous year. Due to volume and mix effects, sales revenue rose by 4.2% to €138.1 billion. Exchange rate effects had a negative impact.

In North America, higher demand in Mexico lifted sales of Group vehicles by 2.9% to 1.0 million units. Due to exchange rate developments, sales revenue fell by 0.2% year-on-year to €35.5 billion.

The economic environment in the markets of the South America region remained difficult in the reporting year. The Volkswagen Group sold 0.4 million vehicles there (– 22.1%). The lower volume was combined with negative exchange rate effects, resulting in a 21.4% fall in sales revenue to €8.0 billion.

In the Asia-Pacific region, sales of Group models – including the Chinese joint ventures – in fiscal year 2016 amounted to 4.4 (4.0) million vehicles. At €35.8 billion, sales revenue exceeded the prior-year figure by 1.5%. Currency effects had a negative impact. This figure does not include the sales revenue generated by our Chinese joint ventures, since these are accounted for using the equity method.

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KEY FIGURES BY BRAND AND BUSINESS FIELD1

 

 

VEHICLE SALES

 

SALES REVENUE

 

SALES TO THIRD PARTIES

 

OPERATING RESULT

Thousand vehicles/€ million

 

2016

 

2015

 

2016

 

2015

 

2016

 

2015

 

2016

 

2015

1

All figures shown are rounded, so minor discrepancies may arise from addition of these amounts.

2

Including financial services.

3

The sales revenue and operating result of the joint venture companies in China are not included in the figures for the Group. The Chinese companies are accounted for using the equity method and recorded a proportionate operating result of €4,956 (5,214) million.

4

Mainly intragroup items recognized in profit or loss, in particular from the elimination of intercompany profits; the figure includes depreciation and amortization of identifiable assets as part of purchase price allocation for Scania, Porsche Holding Salzburg, MAN and Porsche.

5

Including allocation of consolidation adjustments between the Automotive and Financial Services divisions.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Volkswagen Passenger Cars

 

4,347

 

4,424

 

105,651

 

106,240

 

69,523

 

70,939

 

1,869

 

2,102

Audi

 

1,534

 

1,529

 

59,317

 

58,420

 

37,460

 

37,605

 

4,846

 

5,134

ŠKODA

 

814

 

800

 

13,705

 

12,486

 

6,606

 

6,128

 

1,197

 

915

SEAT

 

548

 

544

 

8,894

 

8,572

 

3,967

 

3,570

 

153

 

−10

Bentley

 

11

 

11

 

2,031

 

1,936

 

1,590

 

1,379

 

112

 

110

Porsche2

 

239

 

219

 

22,318

 

21,533

 

20,166

 

19,663

 

3,877

 

3,404

Volkswagen Commercial Vehicles

 

478

 

456

 

11,120

 

10,341

 

5,527

 

4,813

 

455

 

382

Scania2

 

83

 

78

 

11,303

 

10,479

 

11,291

 

10,479

 

1,072

 

1,027

MAN Commercial Vehicles

 

102

 

102

 

10,005

 

9,958

 

9,275

 

9,700

 

230

 

−4

MAN Power Engineering

 

 

 

3,593

 

3,775

 

3,590

 

3,769

 

194

 

283

VW China3

 

3,873

 

3,456

 

 

 

 

 

 

Other

 

−1,638

 

−1,608

 

−58,225

 

−56,349

 

23,646

 

21,922

 

−1,4864

 

−2,4404

Volkswagen Financial Services

 

 

 

27,554

 

25,901

 

24,625

 

23,326

 

2,105

 

1,921

Volkswagen Group before special items

 

 

 

 

 

 

 

14,623

 

12,824

Special items

 

 

 

 

 

 

 

−7,520

 

−16,893

Volkswagen Group

 

10,391

 

10,010

 

217,267

 

213,292

 

217,267

 

213,292

 

7,103

 

−4,069

Automotive Division5

 

10,391

 

10,010

 

186,016

 

183,936

 

189,384

 

186,869

 

4,668

 

−6,305

of which: Passenger Cars Business Area

 

9,729

 

9,374

 

150,343

 

149,716

 

160,409

 

158,716

 

4,167

 

−7,013

Commercial Vehicles Business Area

 

662

 

636

 

32,080

 

30,445

 

25,385

 

24,383

 

718

 

586

Power Engineering Business Area

 

 

 

3,593

 

3,775

 

3,590

 

3,769

 

−217

 

123

Financial Services Division

 

 

 

31,251

 

29,357

 

27,883

 

26,424

 

2,435

 

2,236

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KEY FIGURES BY MARKET1

 

 

VEHICLE SALES

 

SALES REVENUE

Thousand vehicles/€ million

 

2016

 

2015

 

2016

 

2015

1

All figures shown are rounded, so minor discrepancies may arise from addition of these amounts.

2

The sales revenue of the joint venture companies in China is not included in the figures for the Group and the Asia-Pacific market.

 

 

 

 

 

 

 

 

 

Europe/Other markets

 

4,635

 

4,524

 

138,079

 

132,535

North America

 

968

 

941

 

35,454

 

35,384

South America

 

421

 

540

 

7,973

 

10,148

Asia-Pacific2

 

4,367

 

4,005

 

35,761

 

35,225

Volkswagen Group2

 

10,391

 

10,010

 

217,267

 

213,292