Volkswagen sees FY23 vehicle deliveries around 9.5M

Volkswagen Group anticipates that overall vehicle deliveries will rise to around 9.5M in 2023 primarily driven by the strong order backlog on hand as semiconductor supply and logistics chain issues should ease in the course of the year. Volkswagen Group expects sales revenues to be 10 to 15% higher than the prior-year figure. In terms of operating result for the Group, an operating return on sales in the range of 7.5% to 8.5% is forecast for 2023. In the Automotive Division, the R&D ratio is expected to come in at around 8%, and the ratio of capex to sales revenue at around 6.5%. Volkswagen Group expects a strong increase in reported net cash flow in 2023. Net liquidity is expected to range between EUR35B and EUR40B; this includes the inflows and outflows of funds in connection with the payment of the special and regular dividend of EUR11B both due in 2023. The return on investment is expected to be between 12% and 15%. Challenges arise in particular from the economic environment, the increasing intensity of competition, volatile raw material, energy and foreign exchange markets, and stricter emission-related requirements.