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Volkswagen’s 2020 deliveries slump by 21.5%, market share grows

Jordan
Major
2 years ago
2 mins read

The Volkswagen Group’s global vehicle deliveries in the first eight months of 2020 dropped by 21.5% to 5.6 million. During a similar period last year, the deliveries stood at 7.1 million.

The results made public today during the 2020 Annual General Meeting shows that the worst drop was recorded in Western Europe by 30.9%. On the other hand, China which remains Volkswagen main market recorded the least drop in deliveries at 11.5%. Brands like Volkswagen Golf, Skoda, and Seat recorded the biggest hit with a 23% drop in deliveries. 

Despite the production being impacted by the coronavirus pandemic, the German manufacturer’s global market share grew by 0.4% to 13%. 

The Group looks forward to shaking off the impact of the pandemic with projections indicating that September deliveries will be higher than last year. Volkswagen confirmed that its goal of having positive operating result in 2020 is still on course

The incoming CEO Herbert Deiss pointed out that the pandemic acts as a catalyst towards the group’s goals. According to Deiss:

“The transformation of the Group is not being held back by corona, but accelerated by it. The fact that the car will develop into a fully networked mobility device in the next ten years will be much more far-reaching than the transformation of propulsion.”

Focus on electric vehicle manufacturing

To cope with competition, Volkswagen is also focusing on making a mark in the electric car market. The Group plans to invest €33 billion in e-mobility by 2024 and aims to become the market leader in battery-electric vehicles. The company has received over 30,000 unit orders of all-electric vehicles.

During the AGM, the Board of Management proposed the distribution of a dividend of 4.80 euros per ordinary share and 4.86 euros per preferred share. The proposal is an amendment to the dividend prices announced back in 2019. The original proposal saw each ordinary share going for 6.50 euros and 6.56 euros per preferred share. 

To continue with production amid the health crisis, the company has an infection rate of 0.11% within its 670,000 employees. The group has its test center in Wolfsburg where it is performing 2400 tests for the virus per day. 

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Jordan Major
Author

Jordan is an investor and market analyst. He's passionate about stocks, ETFs, blockchain, and digital assets. At Finbold.com, he delves into the technicalities to obtain future trends for new market traders and gives insights into user-friendly platforms for beginners.

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