Volkswagen in the United States:
An Evolving Growth Story
Hardy Brennecke
EVP & CFO, Volkswagen Group of America, Inc.
Deutsche Bank Global Auto Industry Conference, Detroit, 16 January 2013
Disclaimer
This presentation contains forward-looking statements and information on the business development of
the Volkswagen Group. These statements may be spoken or written and can be recognized by terms
such as “expects”, “anticipates”, “intends”, “plans”, “believes”, “seeks”, “estimates”, “will” or words
with similar meaning. These statements are based on assumptions relating to the development of the
economies of individual countries, and in particular of the automotive industry, which we have made on
the basis of the information available to us and which we consider to be realistic at the time of going to
press. The estimates given involve a degree of risk, and the actual developments may differ from those
forecast.
Consequently, any unexpected fall in demand or economic stagnation in our key sales markets, such as
in Western Europe (and especially Germany) or in the USA, Brazil or China, will have a corresponding
impact on the development of our business. The same applies in the event of a significant shift in
current exchange rates relative to the US dollar, sterling, yen, Brazilian real, Chinese renminbi and
Czech koruna.
If any of these or other risks occur, or if the assumptions underlying any of these statements prove
incorrect, the actual results may significantly differ from those expressed or implied by such
statements.
We do not update forward-looking statements retrospectively. Such statements are valid on the date of
publication and can be superseded.
2
Agenda
Volkswagen Group sales update
Volkswagen’s profitable growth in the U.S. market
3
Agenda
Volkswagen Group sales update
Volkswagen’s profitable growth in the U.S. market
4
World Car Market vs. VW Group Deliveries to Customers1)
January to December 2012 vs. 2011
World: Car market: 7.2% VW Group: 11.2%
North America
Car market
VW Group
Cars + LCV
26.2%
Western Europe
Car market
VW Group
Central & Eastern Europe
Car market
VW Group
17.6%
12.4%
5.9%
-8.2%
South America
Car market
VW Group
-3.4%
Rest of World
Car market
VW Group
Asia Pacific
Car market
23.3%
23.2%
4.6%
1)
8.2%
Figures incl. Porsche (since 08/12); excl. Scania and MAN
VW Group
13.3%
6.0%
5
Volkswagen Group – Deliveries to Customers by Markets1)
January to December 2012 vs. 2011
´000 units
+11.2%
January to December 2011
January to December 2012
1)
10,000
9,074
9,000
8,160
8,000
7,000
6,000
5,000
-3.4%
+23.3%
+17.6%
+26.2%
+8.2%
+23.2%
4,000
3,130 3,023
2,570
3,000
3,170
2,000
548
1,000
644
667
842
933 1,010
313
385
0
Volkswagen
Group
1)
Western
Europe
Figures incl. Porsche (since 08/12); excl. Scania and MAN
Central &
Eastern
Europe
North America South America Asia Pacific
Rest of World
6
Volkswagen Group – Deliveries to Customers by Brands1)
January to December 2012 vs. 2011
´000 units
+11.2%
January to December 2011
January to December 2012
1)
10,000
9,074
9,000
8,160
8,000
7,000
+12.7%
5,738
6,000
5,091
5,000
4,000
3,000
+11.7%
2,000
1,303 1,455
1,000
+6.8%
-8.3%
+21.5%
879 939
529 550
350 321
60
0
Volkswagen Volkswagen
Group
Passenger Cars
1)
Figures incl. Porsche (since 08/12); excl. Scania and MAN
Audi
ŠKODA
+4.1%
SEAT
Porsche
(since 08/12)
7
9
Bentley
Volkswagen
Commercial
Vehicles
7
Agenda
Volkswagen Group sales update
Volkswagen’s profitable growth in the U.S. market
8
Volkswagen Group in America – Writing a New Chapter
U.S. is creating profitable growth through localized models and by working as one Group
Leading
in customer
satisfaction
and quality
Auburn Hills
Herndon Headquarters
Chattanooga Plant
Volkswagen
Group profit
before tax
margin > 8%1
Top
employer
Silao Plant
Puebla Plant
Audi San José Chiapa Plant
(SOP 2016)
Volumes
> 10 million
units p.a.1
1
Global Volkswagen Group Targets/Strategy 2018
9
Volkswagen Group of America – Deliveries to Customers by Brands
January to December 2012 vs. 2011
January to December 2011
January to December 2012
+30.6%
580,286
+35.1%
444,192
438,133
324,402
+23.3%
2,351
+18.5%
1,877
117,561
139,310
+50.0%
352
Volkswagen GoA
Volkswagen
Passenger Cars
Audi
Bentley
528
Lamborghini &
Bugatti
10
Volkswagen Brand Momentum Continued in 2012
Best sales since 1973
Delivered twice the volume sold in 2009
Best market share in 29 years at 3.0%
2010: 20.3% Year-over-year Sales Increase
2011: 26.3% Year-over-year Sales Increase
2012: 35.1% Year-over-year Sales Increase
Jetta Hybrid SEL
Beetle
Convertible Turbo
Passat
Tiguan
11
Significant Step-Up in U.S. Volkswagen Brand Sales
+35%
500,000
438,133
+26%
400,000
324,402
+20%
300,000
224,195 235,140 230,560 223,128
213,454
256,830
200,000
100,000
Industry
Growth
2005
2006
2007
2008
2009
2010
2011
2012
0%
-3%
-20%
-18%
-21%
11%
23%
13%
Souce: Autodata, Volkswagen
12
Volkswagen Brand
13
Increased Localization Supports Positive Sales Development
Percentage of delivered vehicles by origin; Volkswagen brand
2012
2010
25%
39%
61%
75%
Vehicles sourced / manufactured in North America
Vehicles sourced / manufactured outside of North America
14
Award-winning: The All New Passat
Car of the Year 2012
Top Safety Pick 2011
Best Family Car of 2012 and
Best Sedan under $25,000
The Family Vehicle
of the Year 2012
Best of 2012
Winner of
Hot Six Comparison
15
Competitor Introductions will Increase Diesel Awareness
Expected number of competitor models1) (excl. Volkswagen/Audi/Porsche)
15
Mercedes
10
Mazda
Jeep
5
Infiniti
Chevrolet
BMW
0
2012
2013
2014
2015
2016
2017
1) Excluding
pick-up trucks
Source: Market research by Volkswagen Group of America, Inc.
16
Volkswagen Brand Models Recommended by Consumer Reports
Increase From Six to Ten
Recommendation History of Models
Beetle
2.5L
CC
2.0T
Eos
GTI
Golf 2.5
Golf TDI
Jetta
GLI
Jetta 2.5L Jetta TDI
Sportwagen SportWagen
2.5L
TDI
Passat
Passat
Passat
2.5L
3.6L
TDI
Routan
Tiguan
Touareg
TDI
2010
2011
2012
Source: Consumer Reports
17
Volkswagen Group of America Business Objectives for 2013
Volkswagen Group of America achieved more than 95% volume
growth since 2009: Continue to build on foundations that
contribute to sustainable and profitable growth
Outperform market in 2013
Continue sales momentum in 2013 and aim to sell over 600,000
units – the first time ever
Market forecast approximately 15.0 million units in 2013,
depending on economic conditions
On a consolidated basis, Volkswagen Group of America has set
its sights on moving into the black this year
18
Volkswagen in the United States:
An Evolving Growth Story
Hardy Brennecke
EVP & CFO, Volkswagen Group of America, Inc.
Deutsche Bank Global Auto Industry Conference, Detroit, 16 January 2013