Volkswagen Passenger Cars Brand Performance and Sales Report 2015

Fiscal Year 2015 Highlights

In fiscal year 2015, the Volkswagen Passenger Cars brand launched the new generation of the versatile Touran and presented the Tiguan's successor. The emissions issue resulted in special items influencing the operating result.

Business Development

The Volkswagen Passenger Cars brand launched the third generation of the Touran in 2015. This family-friendly compact van features a highly variable interior, an economical range of engines, and an extensive lineup of driver assistance and infotainment systems. The Passat GTE expanded the range of plug-in hybrid vehicles. At the IAA in Frankfurt am Main, the new Tiguan attracted significant interest, with its launch scheduled for the second quarter of 2016. The successful Polo celebrated its 40th birthday in the reporting period, having first rolled off the production line in Wolfsburg in spring 1975. The emissions issue negatively impacted the brand starting in September 2015.

In a challenging market environment, the Volkswagen Passenger Cars brand delivered 5.8 million vehicles in the reporting period, a decrease of 4.8% year-on-year. This decline was particularly attributable to the markets in Brazil, China, and Russia. Vehicle sales in Europe showed growth, especially in Spain (+13.2%) and Italy (+5.8%), as well as in Turkey (+26.9%) and Mexico (+11.8%).

Unit sales for the Volkswagen Passenger Cars brand were 4.4 million in 2015, lower than the 4.6 million in 2014. Demand in Brazil and Russia continued to fall due to the tense market situation. In contrast, Western Europe saw a continued recovery. Strong customer demand was noted for the Golf, the Sportsvan, and the new generation of the Passat. The difference between deliveries and unit sales is primarily due to vehicle-producing joint ventures in China not being counted as Volkswagen Passenger Cars brand companies.

The Volkswagen Passenger Cars brand produced 5.9 million vehicles in the reporting period, a decrease of 4.2% compared to the previous year. In Wolfsburg, the 43 millionth vehicle rolled off the production line in 2015, while the Emden plant celebrated the production of its 11 millionth vehicle. In 2015, Volkswagen became the first foreign automobile manufacturer to establish its own engine plant in Russia, located in Kaluga near the vehicle production facilities, with an annual capacity of 150,000 units.

The Polo celebrated its 40th anniversary, marking a successful history.

Sales Revenue and Earnings

In the reporting period, the Volkswagen Passenger Cars brand's sales revenue reached €106.2 billion, a 6.5% increase over the previous year. The operating result before special items decreased to €2.1 billion (from €2.5 billion in the prior year). Positive impacts from exchange rates, sales revenue and cost optimization, and the efficiency program were insufficient to offset negative effects from the markets in Brazil and Russia, as well as market-related promotion activities stemming from the emissions issue. The operating return on sales before special items fell to 2.0% (from 2.5%). Special items totaling €–16.4 billion resulted from the diesel issue, restructuring measures in South America, and the replacement of supplied airbags.

Production and Sales Data

The following tables detail production figures, deliveries, sales, revenue, and earnings for the Volkswagen Passenger Cars brand in 2015 compared to 2014.

Production Units by Model (2015 vs. 2014)

Volkswagen Passenger Cars Brand Key Figures (2015 vs. 2014)

Deliveries by Market Distribution (in percent):

• Europe/Other markets: 33.2%
• North America: 10.2%
• South America: 7.9%
• Asia-Pacific: 48.7%

This distribution indicates that Asia-Pacific is the largest market for deliveries, followed by Europe/Other markets.

A visual representation of the Volkswagen Touran vehicle is present, showcasing its design.