2023-05-08 11:42:23 ET
Volkswagen ( OTCPK:VWAGY ) outlined plans to shuffle the leadership of its software subsidiary CARIAD, while also highlighting strong sales growth for Czech and Spanish sub-brands.
On the software front, the board approved the accession of former Bentley manufacturing head honcho Peter Bosch as CEO of CARIAD. CEO Oliver Blume noted that the “realignment” of CARIAD was a crucial part of the company’s strategic action plan outlined in late 2022 and reiterated in March .
“We are now setting the next milestones for advancing strategic, structural and personnel development. CARIAD focuses on the development of digital future technologies for the Group brands,” Blume said. “We are stepping up the pace and broadening our approach to partnerships. This is designed to combine our competences with the best solutions on the market for the benefit of our customers. The outcome is even closer software-vehicle development interaction.”
Elsewhere, Thomas Schäfer, Member of the Volkswagen Group Board of Management in charge of the Brand Group Volume, highlighted the strength of sub-brand sales. In particular, Czech brand Škoda and Spanish brand Cupra were cited as areas of strength.
“Strong brands, lean engine room: targeted cooperation between the brands enabled us to expand existing synergies and scaling benefits in the past few months and at the same time increase our financial robustness and innovation strength. The Brand Group Volume’s key figures prove we are on the right track,” Schäfer said.
Škoda Auto unit sales rose 12.6% year over year and revenue spiked 33.3% in comparison ot the prior year quarter. The Mlada Boleslav-based manufacturer’s Enyaq iV family was cited as “particularly successful” in Q1, with deliveries rising by over 40%. Meanwhile, Spanish subsidiary SEAT/CUPRA saw EV sales quadruple to 9,200 units, aiding an over 23% jump in overall unit sales to 91,407.
Finally, Volkswagen commercial deliveries rose 18.7% to just under 100,000. Revenue spiked to €3.6B and operating profit surged about 370% year over year to €171M as supply chain issues eased.
“Based on effective management of the Brand Group Volume with lean structures, the focus is on reducing complexity – and the systematic leveraging of existing synergy potential. The central performance indicator for Brand Group Volume is a consolidated operating return on sales of 8% from 2025,” the company concluded. “For the 2023 fiscal year, the brand group already expects a consolidated operating return on sales significantly higher than the 3.6% posted for 2022.”
Read more on overall Q1 results for the automaker .
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Volkswagen names new software chief, highlights booming subsidiary sales