2023-03-14 06:59:29 ET
Volkswagen ( OTCPK:VWAGY ) posted full-year results on Tuesday and outlined ambitious targets in EV and technology spending for coming years.
For the full-year 2022, the German automaker posted an 11.6% jump in revenue from the prior year to €279.23B. Overall delivery numbers declined 7% from 2021, but operating margins grew 8.1% due to pricing actions.
“We made headway on executing our strategy, despite extreme headwinds. BEVs accounted for a record 7 percent share of total deliveries – a significant milestone that we will build upon this year as our popular model range continues to grow,” CEO Oliver Blume said. “ We continued to strengthen our global presence by concentrating the production and development of our excellent products and technologies even more locally in the markets. FY23 will be a decisive year for executing strategic goals and accelerating progress across the group.”
Management touted a “high order book of 1.8M vehicles and a unique product portfolio” heading into 2023. Supply chain issues are also expected to ease into 2023, allowing for delivery growth into the year.
However, most striking in the company’s guidance is the plan to invest In total, the Group is planning to invest €180B ($192.9M) between 2023 – 2027 in “the most attractive profit pools and regions, with more than two-thirds allotted for electrification and digitalization.” The investments will be directed toward battery plants, growth in both North America and CHina, and continued digitalization of vehicles.
“We aim to again generate robust returns in the current year,” CFO Arno Antlitz concluded. “Our strong financial basis puts us in a position to continue investing in the electrification and digitalization of our company, even in a challenging economic environment.”
Shares of Volkswagen listed in Frankfurt fell 3.13% in midday trading, extending a drop in the past week to nearly 9%.
Read more on the company’s investments in Canada .
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Volkswagen targets over $190B in EV, tech investments