Volkswagen Group recently published its quarterly sales and financial reports, revealing a somewhat challenging start to 2024 but with promising prospects for the near future. Of particular interest to us at Truck & Bus News is the performance of Volkswagen’s heavy commercial vehicle division known as Traton.
Sales for Traton, which includes brands like Scania, Navistar, and MAN, experienced a slight dip of 4% in the first quarter compared to the same period in 2023, with a total of 81,148 units sold. Truck sales accounted for 68,772 units (-2%), while bus deliveries saw a more significant decrease of 34% to 5,032 units. The remaining sales in the period came from MAN TGE Vans, totaling 7,344 units (+9%).
Despite the decrease in sales volume, revenue from truck, bus, and van sales saw a 5% increase, reaching around 12 billion Euros. The truck divisions alone employed over 104,000 individuals, according to Volkswagen.
Interestingly, Traton proved to be a profitable division for the group, with margins on trucks, buses, and vans standing at an impressive 9%, higher than the group’s average operating return on sales of 7% to 7.5%.
Volkswagen Group’s CFO & COO, Arno Antlitz, expressed optimism regarding the sales downturns in the first quarter, anticipating a turnaround in the coming months. He mentioned a strong March, a solid order bank, and an improving order intake as positive indicators for the second quarter. Furthermore, the launch of more than 30 new models across all brands and efficiency programs are expected to provide additional momentum throughout the year.
As Volkswagen looks to achieve its financial targets for 2024, the focus will be on addressing fixed costs and maintaining investment discipline to ensure sustained growth.
