WOLFSBURG, Germany — Volkswagen Group’s Brand Group Core, which includes Volkswagen, Škoda, SEAT/CUPRA, and Volkswagen Commercial Vehicles, reported steady financial performance in 2024 despite a challenging market environment, the company announced Thursday.
The division achieved an operating result of €6.96 billion, down slightly from €7.27 billion in 2023, as higher fixed costs and restructuring expenses impacted profitability. Sales revenue rose 1.6% year-on-year to €140 billion, while vehicle sales increased by 2.8% to 4.96 million units.
“Our independent core brands make us strong and innovative,” said Thomas Schäfer, CEO of Volkswagen Passenger Cars and Head of Brand Group Core. “We are not only getting better together but also becoming more efficient in key areas such as battery costs, development time, and software quality.”
Market Performance and Efficiency Gains
The Volkswagen brand maintained its market position despite rising competition, while Škoda Auto recorded its best financial year, with operating profits soaring 30% to €2.3 billion. SEAT/CUPRA posted a 5.9% increase in vehicle deliveries, while Volkswagen Commercial Vehicles saw a slight decline due to a model transition.
Amid global headwinds, the brand group increased its market share in Europe to 20.1% and optimized operations, including a 3% reduction in factory costs per vehicle at Volkswagen plants.
Future Outlook: Electric Urban Car Family and Efficiency Drive
Looking ahead, Volkswagen’s Brand Group Core is focused on expanding its efficiency programs and accelerating electric vehicle production. The company is preparing to launch the Electric Urban Car Family in 2026, with four new models priced at approximately €25,000.
“With the Electric Urban Car Family, we will show that it’s possible to develop and build affordable compact electric cars in Europe while maintaining the unique identities of our brands,” Schäfer said.
The group aims to achieve an 8% operating margin in the mid-term through enhanced collaboration, streamlined processes, and production network optimization across its 22 global manufacturing locations.
