VWCV vehicles transport vital goods, serve as mobile workshops, and transport doctors and police officers to locations where they are required. Vehicles and utilities have proven to be an integral aspect of the societal structure in the last year.
The new division brings together self-driving cars and new transportation systems.
In the Volkswagen Group, Volkswagen Commercial Vehicles is taking the lead in the field of autonomous driving. This is done in collaboration with Argo AI.
Volkswagen Commercial Vehicles is combining these operations into a separate division under the VWCV umbrella due to the importance of transportation networks and the future of autonomous driving. Apart from MOIA and Cito, the ‘MaaS/TaaS/AD’ division includes all Argo AI contributions and all operations related to the advancement of autonomous driving. The corporation will report on this new division in its own financial KPIs, much as it did with the previous “Car Business” division.
The environmental priorities have now been strongly rooted in the plan by the business management. In this regard, VWCV is concentrating on electrifying its fleet, including the upcoming Multivan as a plug-in hybrid this year and the fully-electric ID. BUZZ next year. On the other hand, the team of professionals are working tirelessly to reduce the manufacturing process’s environmental effects. Reduced electricity, water, and solvent consumption, as well as waste and CO2 pollution, are also included. VWCV plans to reduce this by 50% by 2025 as compared to 2010. A drop of 39% has already been reached in Hannover.
Financial outcomes for 2020
According to finance director Holger Kintscher, the financial risks needed for the restructuring of VWCV can already be seen based on construction costs and balance sheet commitments in 2020. The costs of growth, especially for the ID. BUZZ and autonomous driving increased by about 100 million euros in 2020, bringing the total to around 1 billion euros. Balance sheet contributions increased by 31% to a total of 966 million euros over the same time.
According to Kintscher, these acquisitions are protecting the future and returning the company to a development path beginning in 2022. Due to a 24.4 % reduction in units delivered year over year as a result of the coronavirus pandemic, turnover dropped by 18 % to 9.4 billion euros (prior year 11.5 billion euros). Since Volkswagen Commercial Vehicles did not meet the CO2 goals in 2020, incentive taxes of 340 million euros were levied for the first time. In total, these debit products resulted in a -454 million euro operating result (prior year 510 million euros).
Holger Kintscher emphasised the effectiveness of the ‘GRIP Performance’ internal profit management initiative. This software is deeply rooted in the company’s philosophy and combines strict cost control with sales management—benefit increases of about 600 million euros possible in 2020 alone. The curriculum is being followed to the letter. The program’s emphasis on sustainability is a huge plus. The corporation will continue to profit from the interventions in this manner in the future.
The product range has been revised and extended, and use has been assured.
VWCV launched the all-new Caddy in 2020, and it will be available in dealerships by the end of the year. The Caddy, which is based on the Group MQB architecture, now provides segment-first levels of driving convenience, driver assistance systems, and infotainment. It expands the camping vehicle range as the Caddy California, joining the Crafter-based Grand California and the famous T model. Volkswagen Commercial Vehicles will also build a Caddy-based ‘City Van’ for Ford, with production expected to begin in 2022 at the Pozna factory.
VWCV will unveil the latest Multivan in a few weeks, with a plug-in hybrid version available from the start. It expands the van segment’s offerings, while the new T6.1 remains available as a tough commercial and all-wheel-drive vehicle. The fully electric ID will be released the next year. BUZZ is the upcoming symbol from Hannover, both as a people mover and as a freight vehicle. Intra announced the model’s launch for the US American market at the same time.
The next Amarok will be released next year, following the collaboration with Ford. The Chairman of the Management Board, when displaying a recent concept sketch, emphasised VWCV’s strong goal of being not only a great pick-up but also a true Volkswagen with clear DNA in both technology and design.
The GRIP strategy is a development strategy. It will be sustainable again in the medium term, with a significant increase in units delivered, turnover, and bottom-line performance. The aim is for Volkswagen Commercial Vehicles to play a key role in defining the next decade’s mobility.