CHINA - General Motors sets a June and Year To Date sales record, exceeding 1.8 Million units.

• June deliveries up 11.2 percent to 273,563 units
• First half deliveries up 5.3 percent to 1,810,476 units

General Motors and its joint ventures had record June deliveries in China of 273,563 units, which was up 11.2 percent on an annual basis. The Buick, Cadillac and Baojun brands had their best June ever.

Its strong performance in June enabled GM to set a first half record for deliveries in China. Demand was up 5.3 percent from the first six months of 2015 to 1,810,476 units.

“Sales of the Cadillac luxury brand and Buick have remained strong throughout 2016,” said GM Executive Vice President and GM China President Matt Tsien. “We have also seen very high demand for our Baojun entry-level passenger car brand and a return to growth for the Wuling brand.”

Cadillac deliveries in June jumped 34 percent on an annual basis to 9,552 units. Demand for the ATS-L and XTS luxury sedans and XT5 luxury crossover all surpassed 2,000 units last month.

Buick deliveries were up 10 percent year over year to 86,054 units in June. Demand for the Excelle GT sedan remained strong, exceeding 26,000 units. Demand for the brand’s best-selling SUV, the Envision, increased 27 percent to more than 14,000 units.

Baojun deliveries more than doubled to 43,249 units in June from a year earlier. Deliveries of both of its best-selling models, the Baojun 730 MPV and Baojun 560 SUV, exceeded 20,000 units.

Wuling deliveries advanced 8.1 percent to 99,017 units from the previous June. The Hong Guang MPV family remained popular, with demand surpassing 30,000 units. Demand for the Rong Guang V minivan was up 20 percent.

Chevrolet deliveries were down 25 percent year over year in June to 35,648 units. The Malibu XL, Chevrolet’s new flagship sedan launched in February, increased its momentum as it posted a 46 percent month-over-month increase. The all-new Cruze passenger car will be launched this quarter.

Ford's Fiesta continues to dominate the European market, holding the #1 sales position for three years.

• The Ford Fiesta continues to reaffirm its European leadership among compact cars, winning relating to the first six months of 2015 1st place in the ranking of sales of 'small car' *

• The results obtained from the compact Blue Oval in the first half of 2015 carry on the extraordinary success of the current generation Fiesta, which has dominated the European charts sales for 3 consecutive years, in 2012, in 2013 and 2014

• Ford Fiesta sold in Europe 174 thousand in the first half of 2015, an increase of 3.5% over the same period of 2014. Of these, over 22 thousand were sold in Italy, expressing a growth of 13.3%

The Ford Fiesta continues to reaffirm its European leadership among compact cars, winning relating to the first six months of 2015 1st place in the ranking of sales of 'small car'.The Fiesta, at the same time, is also the 2nd best selling model ever in Europe.

The results obtained from the compact Blue Oval in the first half of 2015 carry on the extraordinary success of the current generation Fiesta, which has dominated the European charts sales for 3 consecutive years, in 2012, in 2013 and 2014.

Ford Fiesta sold in Europe 174 thousand in the first half of 2015, expressing a growth of 3.5% over the same period of 2014. Of these, over 22 thousand were sold in Italy, an increase of 13.3% compared to the first six months of 2015. In Italy, also, the Ford Fiesta is also the best-selling between the LPG-powered cars in the first six months of 2015. **

"Customers Europeans have a real passion for the compact, but also have extremely high expectations. We are proud to continue to see the Fiesta at the top of the charts, "said Roelant de Waard, Vice President Marketing, Sales and Service, Ford of Europe. 

"The Fiesta now offers the widest variety of range of all time, with ultra-efficient engines as the ECOnetic model, and the most high level of customization, with new colors as the elegant Silver Beige".

AUDI Celebrates having a storming H1, with over 900,000 vehicles sold and profits of €2.9Billion, not bad.

• Growth in revenue to €30 billion and in operating profit to €2.9 billion, operating return on sales of 9.8 percent
• Audi CEO Rupert Stadler: “The Audi Group demonstrated its strengths once again in the first six months of 2015”

The Audi Group is continuing along its growth path: between January and June, the company delivered more than 900,000 Audi models to customers worldwide for the first time in a six-month period. 

At the same time, the Ingolstadt company increased its revenue to €30 billion and its operating profit to €2.9 billion. The company achieved an operating return on sales of 9.8 percent, once again at the upper end of its strategic target corridor of eight to ten percent.

At the presentation of the half-year interim report, Chairman of the Board of Management of AUDI AG Rupert Stadler stated, “The Audi Group demonstrated its strengths once again in the first six months of this year.” 

Despite high advance expenditure for new models, technologies and the expansion of the worldwide production network, Audi did not lose sight of its ambitious profitability targets.

The company was not left untouched by the heterogeneous development of world markets. Nonetheless, the new record number of cars delivered provides evidence of the strengths of the Audi brand and of the entire Audi Group. Strong demand continued for the company’s products although important models are about to be replaced by the next generation. 

Those models account for approximately 40 percent of unit sales. Luca de Meo, Member of the Board of Management of AUDI AG for Sales and Marketing, said: “We intend to grow also in the full year and will continue to successfully master the many challenges facing us.” 

Due to the high volatility of markets and rising costs for the next stage of the model initiative, cautious business operations are of key importance.

With an increase in unit sales of 3.8 percent in the first half of the year, Audi is on track to set a new record for full-year 2015. 

The Ingolstadt-based automobile manufacturer has already delivered 902,389 cars in the first six months of this year (2014: 869,357). The A3 family and the SUV models Q3 and Q5 are particularly popular with customers worldwide.

Between January and June, the Audi Group generated total revenue of €29,784 million (2014: €26,690 million) – an increase of 11.6 percent. During the same period, the company increased its operating profit by 9.1 percent to €2,914 million (2014: €2,671 million) – immediately prior to the renewal of important bestsellers such as the Audi A4.

The cost of sales of the Audi Group increased primarily due to the strong growth by 8.1 percent to €23,636 million (2014: €21,870 million). At the same time, selling expenses rose to €2,592 million (2014: €2,419 million).

The operating return on sales for the six-month period was 9.8 percent (2014: 10.0 percent), once again at the upper end of the strategic target corridor of eight to ten percent. 

The Audi Group achieved profit before tax of €3,150 million for the first half of 2015 (2014: €3,102 million), representing a return on sales before tax of 10.6 percent (2014: 11.6 percent). Profit after tax amounted to €2,429 million (2013: €2,323 million).

Axel Strotbek, Member of the Board of Management of AUDI AG for Finance and Organization, stated: “We are deliberately making large investments in new models, technologies and production capacities, which will pay off in the medium and long term.” 

For this reason, Audi has started the biggest investment program in the company’s history. 

By 2019, a total of €24 billion is to flow into new models, technologies and the continuous growth of the worldwide production network. Between January and June of 2015 alone, Audi invested €2,001 million in its business operations (2014: €1,552 million) – nearly 30 percent more than in the same period in the previous year.

Despite the increased advance expenditure, Audi fully financed all of its investments out of the cash flow from operating activities, which increased to €3,860 million in the first six months of this year (2014: €3,712 million).

Net liquidity increased by 8.8 percent to €16,668 million at June 30, 2015 (June 30, 2014: €15,324 million).

This year, Audi has already taken more than 2,000 new employees on board; the company plans to recruit a total of approximately 4,000 people in Germany alone by the end of 2015. 

In particular, Audi is seeking experts for alternative drive systems as well as digitalization specialists who will help the company to make further progress in the fields of Audi connect and the smart factory. Worldwide, Audi intends to expand its workforce with approximately 6,000 new employees by the end of the year.

In the full year, the company plans to deliver more Audi brand automobiles than in 2014. A challenge in this context is that the economic environment features significant uncertainties. At the same time, advance expenditure is growing for new production capacities, innovative technologies and attractive new automobiles. 

Additional factors are the rising intensity of competition in key markets and the technological transformation within the automotive industry towards alternative drive systems, in particular to comply with stricter CO₂ limits worldwide.

With the targeted volume growth, the revenue of the Audi Group will also rise, with the rate of growth depending on the general economic conditions. In addition, the company anticipates an operating return on sales within the strategic target corridor of eight to ten percent.

The Volkswagen Group posts healthy financial figures for the first half of the year, despite sales slipping.

• Sharp year-on-year rise in sales revenue to EUR 108.8 billion (EUR 98.8 billion); positive impact from exchange rates and mix effects
• Operating profit before special items rises to EUR 7.0 billion (EUR 6.2 billion)
• Equity-accounted profit of the Chinese joint ventures level year-on-year
• Net liquidity in Automotive Division increases to EUR 21.5 billion
• CEO Dr. Winterkorn: “Volkswagen very well positioned in an increasingly difficult market environment”

The Volkswagen Group reported considerable growth in sales revenue and earnings in the first six months of the year in a very challenging environment. Sales revenue rose by 10.1 percent to EUR 108.8 billion (EUR 98.8 billion) in the first half of the year, primarily due to exchange rate effects and an improved product mix. 

Operating profit before special items grew by 13.0 percent to EUR 7.0 billion (EUR 6.2 billion). Restructuring measures in the trucks business led to an operating profit after special items of EUR 6.8 billion (EUR 6.2 billion). The operating return on sales remained stable at 6.3 percent (6.3 percent). 

The Group’s operating profit and sales revenue exclude the activities of the Chinese joint ventures, which are accounted for in the financial result using the equity method. At EUR 2.7 billion (EUR 2.6 billion), the share of operating profit attributable to the Chinese joint ventures was level year-on-year in the first half of 2015.

“Our results for the first half of the year show that Volkswagen remains very well positioned in an increasingly difficult market environment and has a compelling product range,” said Prof. Dr. Martin Winterkorn, Chairman of the Board of Management of Volkswagen Aktiengesellschaft, in Wolfsburg on Wednesday. 

“We are keeping a very close watch on global macroeconomic trends, especially where there are uncertainties such as in the Chinese, Brazilian and Russian markets.”

The Volkswagen Group’s profit before tax remained almost level at EUR 7.7 billion (EUR 7.8 billion) despite the negative effects from fair value measurement in the financial result. Profit after tax remained unchanged as against the prior-year period, at EUR 5.7 billion (EUR 5.7 billion).

“The difficult market environment and fierce competition, as well as interest rate and exchange rate volatility and fluctuations in raw materials prices all pose challenges. 

We are systematically implementing our efficiency program and are continuing to roll out the modular toolkits. We expect considerable positive effects in both instances,” said CFO Hans Dieter Pötsch.

Net liquidity in the Automotive Division remains high

The Automotive Division’s net cash flow increased considerably year-on-year to EUR 4.8 billion (EUR 2.9 billion) thanks to the Group’s robust business model. Net liquidity in the Automotive Division amounted to EUR 21.5 billion at the end of June (end of December:  EUR 17.6 billion). 

Liquidity was reduced by the capital increase in the Financial Services Division in the first quarter and the dividend payment in the second quarter, while the successful placement of hybrid notes strengthened the Automotive Division’s capital base. 

The Automotive Division’s investments in property, plant and equipment, investment property and intangible assets, excluding capitalized development costs (capex) increased to EUR 4.7 billion (EUR 3.6 billion). The Volkswagen Group maintained its disciplined approach to investment with a ratio of capex to sales revenue in the Automotive Division of 4.9 percent (4.1 percent).

The Group invested primarily in production facilities and in the models to be launched in 2015 and 2016, as well as in the ecological focus of the model range.

Brands and Business Fields

Global new passenger car registrations increased between January and June 2015. However, trends in the individual regions were mixed. While growth was driven bythe Asia-Pacific, North America and Western Europe regions, new passenger car registrations in South America and Eastern Europe saw declines, some of which were severe.

Operating profit at Volkswagen Passenger Cars rose to EUR 1.4 billion (EUR 1.0 billion) due to sales revenue and cost optimization, as well as positive exchange rate effects. Although the markets in South America and Russia were negative factors, there were positive effects from the efficiency program. The operating margin amounted to 2.7 percent (2.1 percent).

Audi’s operating profit rose to EUR 2.9billion (EUR 2.7 billion) due to sales growth and positive exchange rate effects; its operating margin amounted to 9.8 percent (10.0 percent). High upfront investments in new products and technologies, as well as the expansion of the international production network, weighed on earnings.

Operating profit at ŠKODA increased to EUR 522 million (EUR 425 million), mainly due to mix effects, more favorable exchange rates and lower material costs. The operating margin was 8.1 percent (7.1 percent).

The SEAT brand continued its growth trend, lifting its operating profit to EUR 52 million (previous year: operating loss of EUR 37 million). This was primarily due to higher volumes, positive exchange rate effects and cost optimization.

Bentley generated an operating profit of EUR 54 million (EUR 95 million) due to lower vehicle sales and higher up front expenditures.

Porsche’s operating profit improved to EUR 1.7 billion (EUR 1.4 billion) and the brand’s operating margin was 15.7 percent (17.1 percent). Positive volume and exchange rate effects more than offset the negative impact of changes in the mix, increased structural costs and higher development costs.

Volkswagen Commercial Vehicles is renewing its product range and posted an operating profit of EUR 268 million (EUR 280 million). The operating margin amounted to 5.1 percent (5.9 percent).

Scania generated an operating profit of EUR 503 million (EUR 476million) and an operating return on sales of 9.7 percent (9.4 percent). MAN recorded an operating profit before restructuring expenses of EUR 185 million (EUR 222 million) and an operating return on sales of 2.8 percent (3.3 percent). Restructuring measures resulted in special items of EUR – 170 million.

Operating profit at Volkswagen Financial Services amounted to EUR 970 million (EUR 776 million). Its operating return on sales was 7.5 percent (7.4 percent). The number of new contracts signed worldwide rose by 6.4 percent year-on-year to 2.5 million.

Winterkorn: “Pressing ahead with new product initiatives”

Winterkorn believes that the Group is well positioned for the future: “We offer a comprehensive range of attractive, environmentally friendly, cutting-edge, high-quality vehicles. The Volkswagen Group’s brands will press ahead with their new product initiatives in 2015, modernizing and expanding their offering by introducing new models.”

The Volkswagen Group expects that deliveries to customers will remain on a level with the previous year in 2015 in a persistently challenging market environment. 

Depending on economic conditions, 2015 sales revenue for the Volkswagen Group and its business areas is expected to increase by up to four percent above the prior-year figure. However, economic trends in Latin America and Eastern Europe will need to be continuously monitored in the Commercial Vehicles/Power Engineering Business Area.

In terms of the Group’s operating profit, Volkswagen continues to anticipate an operating return on sales of between 5.5 percent and 6.5 percent in 2015. Volkswagen expects the operating return on sales to be in the 6.0 percent to 7.0 percent range in the Passenger Cars Business Area, and between 2.0 percent and 4.0 percent in the Commercial Vehicles/Power Engineering Business Area. 

For the Financial Services Division, Volkswagen is forecasting an operating profit at the prior-year level.

	2015	2014	%	2015	2014	%
	Q2	Q2		H1	H1
Volume data
Deliveries to customers
('000 units)	2,552	2,623	–2.7	5,039	5,066	–0.5
Vehicle sales (’000units)	2,483	2,645	–6.1	5,090	5,207	–2.2
Production (’000 units)	2,593	2,669	–2.8	5,314	5,234	+ 1.5
Employees
(’000 at June 30/Dec.31)				597.8	592.6	+ 0.9
Financial data
(IFRSs), EUR million
Sales revenue	56,041	50,977	+ 9.9	108,776	98,808	+ 10.1
Operating profit before
special items	3,662	3,330	+ 10.0	6,990	6,186	+ 13.0
Special items	–170	–	x	–170	–	x
Operating profit	3,492	3,330	+ 4.9	6,820	6,186	+ 10.3
as a percentage of sales revenue	6.2	6.5		6.3	6.3
Profit before tax	3,696	4,420	–16.4	7,664	7,777	–1.5
as a percentage of sales revenue	6.6	8.7		7.0	7.9
Profit after tax	2,731	3,249	–15.9	5,663	5,716	–0.9
Automotive Division
Cash flows
from operating activities	6,861	6,137	+ 11.8	11,553	8,388	+ 37.7
Cash flows from investing activities
attributable to operating activities*)	3,572	3,167	+ 12.8	6,761	5,469	+ 23.6
of which: capex	2,581	1,953	+ 32.1	4,652	3,578	+ 30.0
as a percentage of sales revenue	5.3	4.3		4.9	4.1
Net cash flow	3,288	2,970	+ 10.7	4,791	2,919	+ 64.2
Net liquidity
at June 30				21,489	13,979	+ 53.7
Net liquidity
at June 30/Dec. 31				21,489	17,639	+ 21.8