Brands and Business Fields

The Volkswagen Group faced challenges in fiscal year 2021 due to the Covid-19 pandemic and the limited vehicle availability as a result of the semiconductor shortage.

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. Activities of the Automotive Division comprise in particular the development of vehicles, engines and vehicle software, and the production and sale of passenger cars, light commercial vehicles, trucks, buses and motorcycles, as well as businesses for genuine parts, large-bore diesel engines, turbomachinery and propulsion components. Mobility solutions are gradually being added to the range. The Ducati brand is allocated to the Audi brand and thus to the Passenger Cars Business Area. Navistar has supplemented the brands in the Commercial Vehicles Business Area since July 1, 2021. The Financial Services Division’s activities comprise dealer and customer financing, vehicle leasing, direct banking and insurance activities, fleet management and mobility services.

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 the world’s largest single market for the Volkswagen Group, 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 differentiated by vehicle brands and their models that carry the corresponding brand logo. Unit sales figures contain vehicles sold by respective brand companies, including models of 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.

KEY FIGURES BY MARKET

The Covid-19 pandemic and the limited vehicle availability due to the semiconductor shortage had a negative impact on business at the Volkswagen Group and its brands in 2021. In the reporting year, the Volkswagen Group generated an operating result before special items of €20.0 (10.6) billion. Special items resulting from the diesel issue weighed on operating result in the amount of €−0.8 (−0.9) billion.

The Volkswagen Group’s unit sales in the reporting year stood at 8.6 (9.2) million vehicles. Sales revenue increased by 12.3% to €250.2 billion due to mix-related factors.

In the Europe/Other markets region, unit sales decreased by 5.2% year-on-year to 3.7 million vehicles. However, positive mix effects helped to lift sales revenue to €145.6 (133.5) billion. Exchange rate movements had a negative effect.

In the North American markets, unit sales in the reporting period were 8.2% up on the prior-year figure at 805 thousand vehicles. Due in particular to higher volumes and mix effects, as well as the consolidation of Navistar as from July 1, 2021, sales revenue rose to €45.3 (36.8) billion, more than compensating for the unfavorable exchange rate trends.

We lifted our unit sales on markets in the South America region to 503 thousand vehicles in 2021, an increase of 6.8% compared with 2020. As a result, sales revenue climbed by 27.9% to €11.0 billion. Exchange rate movements had a negative effect.

In the Asia-Pacific region, the Volkswagen Group’s unit sales – including the Chinese joint ventures – fell to 3.5 (4.0) million vehicles in the reporting year. Driven by mix and exchange rate effects, sales revenue rose to €48.7 (44.3) billion. This figure does not include the sales revenue of our equity-accounted Chinese joint ventures.

Hedging transactions relating to sales revenue in foreign currency had a negative impact of €386 (345) million on the sales revenue of the Volkswagen Group in the reporting year.