Volkswagen Core Brand Group Operating Profit Drops In Q1: But Retail’s Not Rattled

Volkswagen’s core brand group includes its best-selling passenger car brand, Volkswagen, as well as Skoda, Seat, Cupra, and Volkswagen commercial vehicles.

German automaker Volkswagen's (VWAGY) core brand group experienced a rise in sales and revenue in the first quarter, while its operating profit slumped a steep 46.3%.

Volkswagen’s core brand group includes its best-selling passenger car brand, Volkswagen, as well as Skoda, Seat, Cupra, and Volkswagen commercial vehicles.

Unit sales grew 2.7% year-on-year to 1.22 million units, owing to a rise in Volkswagen passenger car sales, which offset a decline in Seat-Cupra and Volkswagen commercial vehicle sales.

Brand Group Core sales revenue improved by 7.8% to €35.34 billion ($40.03 billion) due to higher volume.

Operating profit, however, slumped 46.3% to €1.12 billion while operating margin fell to 3.2% from 6.4% in the corresponding quarter of 2024.

The company said the decline was influenced by the negative effects of CO2 regulations in Europe and import duties in the United States, among other factors.

David Powels, Member of the Volkswagen Brand's Board of Management, said that convincing market launches and higher deliveries of its all-electric models helped counterbalance negative external factors in the quarter.

“We continue to work on lowering battery costs, reducing factory costs and overheads, shortening development times, and improving software quality,” he said.

On Stocktwits, retail sentiment around VWAGY remained unmoved within the ‘extremely bullish’ territory over the past 24 hours while message volume jumped from ‘high’ to ‘extremely high’ levels.

VWAGY stock is up by about 22% this year and down by about 22% over the past 12 months.

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