Q4 2024 Volkswagen AG Earnings Call - Media Conference

March 11, 2025

Sebastian Rudolph: To the Annual Media Conference of Volkswagen. This time we're in Autostadt in Wolfsburg, which is a place for events, for families and, lovers of cars. This year it's also here for the Annual Media Conference. Great to have you here or online in our virtual live stream. 2024 was a very dynamic year, be it the product drive, be it strategics, things that needed to be fixed or financial resilience. We'll hear much more by our CEO, Oliver Blume, and by our CFO of the group, Arno Antlitz, who at the same time is also the COO. Before we come to the numbers, the data, and the facts, we would like to give you an emotional start with our products.

Operator: To the Annual Media Conference of Volkswagen. This time we're in Autostadt in Wolfsburg, which is a place for events, for families and, lovers of cars. This year it's also here for the Annual Media Conference. Great to have you here or online in our virtual live stream. 2024 was a very dynamic year, be it the product drive, be it strategics, things that needed to be fixed or financial resilience. We'll hear much more by our CEO, Oliver Blume, and by our CFO of the group, Arno Antlitz, who at the same time is also the COO. Before we come to the numbers, the data, and the facts, we would like to give you an emotional start with our products.

At this time, when I was talking to and it bolsters book, which is a place for you and then as for families and lovers of cars and the kids also here for the automotive for the annual Media conference Great to have you here or online in a virtual lives.

20th you saw was a very dynamic year beat our product drive B, it's strategic.

Things that needed to be fixed.

Speaker Change: Natural resilience will hear much more by our CEO or a little gloomier and by our CFO of the group I know analysts who at the same time is also the C O O.

We come to the numbers the data and the fact, we would like to give you an emotional start with our products.

Operator: 2024 was a challenge, but we faced it head-on. Bold moves, real progress, and over 30 new models on the road. Software optimized, China redefined, cars built smarter at the right cost. A stronger lineup in North America, with Scout unlocking new potential. In Germany, Zukunft Volkswagen makes us leaner and more competitive. The world moves fast. Expectations rise. We stay ahead. 2025 is when the new power of Volkswagen Group becomes tangible. The foundation is set, and now we bring it to life with fresh models and strong partnerships. Affordable EVs are here. In technology, we're setting the pace. Batteries, platforms, software. Focus, unleash, and succeed. Volkswagen Group is accelerating, driving straight towards global automotive tech driver, the new power of the Volkswagen Group.

[Unknown Speaker]: 2024 was a challenge, but we faced it head-on. Bold moves, real progress, and over 30 new models on the road. Software optimized, China redefined, cars built smarter at the right cost. A stronger lineup in North America, with Scout unlocking new potential. In Germany, Zukunft Volkswagen makes us leaner and more competitive. The world moves fast. Expectations rise. We stay ahead. 2025 is when the new power of Volkswagen Group becomes tangible. The foundation is set, and now we bring it to life with fresh models and strong partnerships. Affordable EVs are here. In technology, we're setting the pace. Batteries, platforms, software. Focus, unleash, and succeed. Volkswagen Group is accelerating, driving straight towards global automotive tech driver, the new power of the Volkswagen Group.

Speaker Change: 'twenty 'twenty four was a challenge.

Speaker Change: We faced it head on.

Speaker Change: We'll move.

Speaker Change: Real progress and over 30, new models on the road.

Speaker Change: Okay.

Speaker Change: Software optimized.

Speaker Change: China's redefine.

Speaker Change: Cars built smarter at the right cost.

Speaker Change: A stronger lineup in North America with Scout unlocking new potential.

Speaker Change: In Germany, and sequenced Volkswagen makes us leaner and more competitive.

Speaker Change: But the world move so fast.

Speaker Change: Extra accretion runs.

Speaker Change: Please state.

Speaker Change: More than 45 is really a new power of Volkswagen group becomes dangerous.

Speaker Change: Our foundation is.

Speaker Change: And now we bring it to London.

Speaker Change: Fresh models and strong partnerships.

Speaker Change: Both portable evs are severe.

Speaker Change: And in technology, we're setting the pace.

Speaker Change: Battery platforms and software.

Speaker Change: Proteus unknown.

Speaker Change: Thanks Scott.

Speaker Change: Volkswagen Group is accelerating.

Speaker Change: These three towards global automotive check driver the new power of their folks Toboggan group.

Oliver Blume: Yeah. Good morning. Meine sehr geehrte Damen und Herren.

Speaker Change: Yeah, good Logmein, Vicki Aten, Daman Tan owning one ladies and gentlemen.

Sebastian Rudolph: Good morning, ladies and gentlemen. I'd like to welcome you to our Annual Media Conference here of the Volkswagen Group. Now, it's strong product. It's passion, it's strength, and a very clear vision. You've just been able to see it on the screen behind me, and that is precisely what our company is about. Now, in a moment, we are going to get into a dialogue with you, but before we do that, our CFO, Arno Antlitz, and myself would like to say a few things to set the scene. 2024 was an ambitious year for the Volkswagen Group, but also a landmark year. When we look back, we see solid financial results, important strategic steps taken, and an unparalleled model push. The Volkswagen Group has shown that our company has strong fundamentals and indeed we're prepared for the challenges and for the opportunities of the future.

Oliver Blume: Good morning, ladies and gentlemen. I'd like to welcome you to our Annual Media Conference here of the Volkswagen Group. Now, it's strong product. It's passion, it's strength, and a very clear vision. You've just been able to see it on the screen behind me, and that is precisely what our company is about. Now, in a moment, we are going to get into a dialogue with you, but before we do that, our CFO, Arno Antlitz, and myself would like to say a few things to set the scene. 2024 was an ambitious year for the Volkswagen Group, but also a landmark year. When we look back, we see solid financial results, important strategic steps taken, and an unparalleled model push. The Volkswagen Group has shown that our company has strong fundamentals and indeed we're prepared for the challenges and for the opportunities of the future.

Speaker Change: I'd like to welcome you to and you'll meet your conference.

Speaker Change: Although it looks like a group not a strong product its position of strength and a very clear vision.

Speaker Change: You've just been able to see it on the screen behind me.

Speaker Change: Precisely what our companies about.

Speaker Change: In a moment, we are going to get into a dialogue with you, but before we do that.

Speaker Change: Our CFO and myself would like to say.

Speaker Change: I'll say, a few things to set the scene enforced policies 'twenty 'twenty four wasn't ambition ambitious yet for the Volkswagen group, but also a landmark year.

Speaker Change: When we look back we see solid financial result.

Speaker Change: Important strategic steps taken in an unparalleled.

Speaker Change: Modal push ones are without the Volkswagen group has shown that our company has strong fundamentals and indeed, we're prepared for the challenges and the opportunities of the future.

Sebastian Rudolph: 2024 was a year of crucial decisions for the Volkswagen Group. We decided to strategically consolidate our position of strength, and 2025 will be a year in which we accelerate. A year in which the new strength of the Volkswagen Group becomes visible, becomes tangible, and becomes alive in a very specific way. When it comes to our financials, we ended 2024 with solid results in a challenging environment with fierce competition. This financial stability now gives us the necessary leeway to continue to invest in the future and also to pursue our strategic goals. To achieve these goals, we must continue to work in a disciplined manner. Now, what that specifically means is that we will continuously improve our product. We will further increase our quality. We'll optimize our cost set up.

Oliver Blume: 2024 was a year of crucial decisions for the Volkswagen Group. We decided to strategically consolidate our position of strength, and 2025 will be a year in which we accelerate. A year in which the new strength of the Volkswagen Group becomes visible, becomes tangible, and becomes alive in a very specific way. When it comes to our financials, we ended 2024 with solid results in a challenging environment with fierce competition. This financial stability now gives us the necessary leeway to continue to invest in the future and also to pursue our strategic goals. To achieve these goals, we must continue to work in a disciplined manner. Now, what that specifically means is that we will continuously improve our product. We will further increase our quality. We'll optimize our cost set up.

I went to 24, what are your of crucial decisions for the Volkswagen group.

Speaker Change: We decided to strategically consolidate our position of strength in 2025 will be.

Speaker Change: We accelerated yeah, okay, and which are the new strength of the Volkswagen group becomes visible it becomes tangible and it becomes a life and a very specific way.

Speaker Change: When it comes to our financials. We ended 2020 full with our solid results in a challenging environment.

Speaker Change: My room with fierce competition.

Speaker Change: This financial stability now gives us the necessary.

Speaker Change: <unk> way to continue to invest in the future and also to pursue our strategic goals.

Speaker Change: To achieve these goals, we must continue to work in a disciplined manner and I want that specifically means is that we will continuously improve our product we will further increase our quality with optimized.

Speaker Change: Optimizing our cost setup with boost our productivity increase.

Sebastian Rudolph: We'll boost our productivity, increase our profitability, and then also strengthen our financial robustness. Really, it is up to us to develop our full potential. We have a very clear vision for that, which says that by 2035, the Volkswagen Group aims to be the global automotive tech driver, so a company that is driving technologies in the automotive industry. What gives us the self-confidence to have such ambitions? Well, it's our strong brands. It's a unique combination of a global footprint and local manufacturing expertise, and it's also our focus on our own qualities in combination with strong partners, which are the best in their field.

Oliver Blume: We'll boost our productivity, increase our profitability, and then also strengthen our financial robustness. Really, it is up to us to develop our full potential. We have a very clear vision for that, which says that by 2035, the Volkswagen Group aims to be the global automotive tech driver, so a company that is driving technologies in the automotive industry. What gives us the self-confidence to have such ambitions? Well, it's our strong brands. It's a unique combination of a global footprint and local manufacturing expertise, and it's also our focus on our own qualities in combination with strong partners, which are the best in their field.

Speaker Change: The profitability and then also strengthen our financial robustness.

Speaker Change: Really it's up to us.

Speaker Change: To develop our full potential.

Speaker Change: Well, we have a very clear vision for that.

Speaker Change: Which says that by 2035 with the Volkswagen Group.

Speaker Change: Seems to be the global automotive Tech driver. So the company that is driving technologies in the automotive industry, let's keep this.

Speaker Change: That's what.

Speaker Change: What gives us.

Speaker Change: The self confidence to have such.

Speaker Change: The ambition as well as our strong brands is unique.

Speaker Change: The unique combination of a global footprint.

Speaker Change: Local manufacturing expertise and it's also a focus on our own qualities in combination with our strong partners.

Speaker Change: Which are the best in that field. So we're agile we're willing to change and then also we are.

Sebastian Rudolph: We're agile, we're willing to change, and then also we are pursuing this strategy to leverage our economies of scale efficiently, strongly in areas that are very important for our transformation, like software, like batteries and platforms. All of that clearly is supported by a capable and passionate team. The key steering instrument for our activities is our top ten program. Those programs have measurable milestones, clear responsibilities, and a systematic roadmap. In 2024 we achieved the goals we set ourselves, and in some cases, actually faster than we had planned. An important milestone was our qualitative leap in software development. We've restructured our own software company, CARIAD, and we have strong partners, Rivian in the US and XPENG in China. In China, we've picked up speed with a new strategy. In North America, we've also pushed ahead with our growth strategy.

Oliver Blume: We're agile, we're willing to change, and then also we are pursuing this strategy to leverage our economies of scale efficiently, strongly in areas that are very important for our transformation, like software, like batteries and platforms. All of that clearly is supported by a capable and passionate team. The key steering instrument for our activities is our top ten program. Those programs have measurable milestones, clear responsibilities, and a systematic roadmap. In 2024 we achieved the goals we set ourselves, and in some cases, actually faster than we had planned. An important milestone was our qualitative leap in software development. We've restructured our own software company, CARIAD, and we have strong partners, Rivian in the US and XPENG in China. In China, we've picked up speed with a new strategy. In North America, we've also pushed ahead with our growth strategy.

Speaker Change: Pursuing this strategy to leverage our economies of scale efficiently.

Speaker Change: Strongly.

Speaker Change: Areas that are very important for our transformation like software like batteries and platforms.

Speaker Change: And all of that clearly is supported by a capable and passionate team.

Speaker Change: Even though in the fatigue as an activity in Blyth steering instrument for our activities.

Speaker Change: As a top 10 program.

Speaker Change: Those programs have measurable milestones clear responsibilities.

Speaker Change: Systematic roadmap.

Speaker Change: In 2024, we achieved the goals, we set ourselves and in some cases actually faster than we had planned.

Speaker Change: Software and important milestone was a cellphone qualitative leap and software development.

Speaker Change: We restructured our own software company carry on.

Speaker Change: And we have strong partners are really in the U S N xiaopeng in China.

Speaker Change: In China, we've picked up speed with a new strategy and in North America. We've also pushed ahead with our growth strategy.

Sebastian Rudolph: The Zukunft Volkswagen Agreement was an important step in our home market. It's the foundation for an economically successful future at Volkswagen and also at our German plants and locations. In other words, we provide quality made in Germany at competitive cost. We are convinced that this is possible. Across all of our brands, we have launched more than 30 new exciting models. It's the most extensive product push in the company's history. Great vehicles across all segments, significantly improved quality and a sharper brand design. We're already now receiving a lot of positive feedback from our customers, which is very important for us, but also from the international media. 2024, we further improved on our competitive format, if you will, hard and consistent work and preparation according to a structured plan, just as an ambitious athlete would do. That is precisely our aspiration.

Oliver Blume: The Zukunft Volkswagen Agreement was an important step in our home market. It's the foundation for an economically successful future at Volkswagen and also at our German plants and locations. In other words, we provide quality made in Germany at competitive cost. We are convinced that this is possible. Across all of our brands, we have launched more than 30 new exciting models. It's the most extensive product push in the company's history. Great vehicles across all segments, significantly improved quality and a sharper brand design. We're already now receiving a lot of positive feedback from our customers, which is very important for us, but also from the international media. 2024, we further improved on our competitive format, if you will, hard and consistent work and preparation according to a structured plan, just as an ambitious athlete would do. That is precisely our aspiration.

Speaker Change: And tightened us zukin folks like an agreement was an important step in our home market.

Speaker Change: The foundation.

Speaker Change: For an economically successful future.

Speaker Change: Volkswagen and also at our German plants and locations in other words, we promote quality made in Germany at competitive costs. We are convinced that this is possible.

Speaker Change: Across all of our friends, we have launched more than 30, new exciting models. It's the most extensive product push in the company's history.

Speaker Change: Great vehicles across all segments significantly improved quality at a sharper brand design that we're already now receiving a lot of positive feedback from our customers, which is very important for us, but also from the international media.

Speaker Change: They come from Gavotte always harbinger Twentyfold, we further improved on a competitive formats or if you will hubs and consistent work and preparation. According to restructure plan just as an ambitious athlete would do and that is precisely.

Sebastian Rudolph: We're not going to let up. In 2025, this new strength of the Volkswagen Group will become visible and will become tangible. Our product push continues with another 30 new models across all of our brands. They will be launched in this year. At the IAA Mobility, our brands will be focusing on the fully digital small electric cars. We have a world premiere to show their vehicles for around 25,000 EUR. Affordable e-mobility, in other words, from the Volkswagen Group for everyone. In China, Audi is launching a model push with our partner, SAIC, and we're also starting battery cell production in Salzgitter. Our autonomous ID. Buzz shuttles are reaching production maturity now. Thanks to our intensive cost efforts and our investment discipline, we're now focusing on what is really important. Technology meets efficiency, in other words.

Oliver Blume: We're not going to let up. In 2025, this new strength of the Volkswagen Group will become visible and will become tangible. Our product push continues with another 30 new models across all of our brands. They will be launched in this year. At the IAA Mobility, our brands will be focusing on the fully digital small electric cars. We have a world premiere to show their vehicles for around 25,000 EUR. Affordable e-mobility, in other words, from the Volkswagen Group for everyone. In China, Audi is launching a model push with our partner, SAIC, and we're also starting battery cell production in Salzgitter. Our autonomous ID. Buzz shuttles are reaching production maturity now. Thanks to our intensive cost efforts and our investment discipline, we're now focusing on what is really important. Technology meets efficiency, in other words.

Speaker Change: Our aspiration and we're not going to let up.

Speaker Change: No yeah cough this folks find consensus even at 2025 this new strengths of the Volkswagen group will become visible will become tangible.

Speaker Change: Our product continues with another 13, new models across all of our brands stay will be launched and they say yeah.

Speaker Change: At the I E Motor show, our brands will be focusing on a fully digital small electric cars.

Speaker Change: Premier to show their vehicles for around 25000 euros affordable E mobility in other words.

Speaker Change: The Volkswagen group for everyone.

Speaker Change: So in China, what is launching modal push with our partner <unk> and we're also starting battery cell production in South Dakota.

Speaker Change: Autonomous I D. Buzz shuttles are reaching production maturity now.

Speaker Change: Thanks to our intensive cost efforts and our investment discipline. We're now focusing on what is really important technology meets efficiency in other words.

Sebastian Rudolph: The Volkswagen Group is driving innovation forward, but it remains profitable. Mobility is undergoing a radical change. As the Volkswagen Group, we want to be the driving force behind this change globally. We're determined, and we're self-confident because we have strong products. We're well-equipped with the right technologies that we have for the challenges and opportunities for the future. We have to continue to work now with discipline. We want to remain financially robust and to maintain our agency. We're moving at a rapid pace to shape the successful future for this unique group together across all brands in all regions. Thank you so much for your attention. Now my colleague, Arno Antlitz, our CFO and our COO of the Volkswagen Group, will also now give you a brief overview of our financials. Arno, you have the floor, please.

Oliver Blume: The Volkswagen Group is driving innovation forward, but it remains profitable. Mobility is undergoing a radical change. As the Volkswagen Group, we want to be the driving force behind this change globally. We're determined, and we're self-confident because we have strong products. We're well-equipped with the right technologies that we have for the challenges and opportunities for the future. We have to continue to work now with discipline. We want to remain financially robust and to maintain our agency. We're moving at a rapid pace to shape the successful future for this unique group together across all brands in all regions. Thank you so much for your attention. Now my colleague, Arno Antlitz, our CFO and our COO of the Volkswagen Group, will also now give you a brief overview of our financials. Arno, you have the floor, please.

You know what your own photon blade the Volkswagen group is driving innovation forward, but it remains profitable mobility is undergoing a radical change.

Speaker Change: That's the Volkswagen group, we want to be the driving force behind this change globally.

Speaker Change: We're determined where self confident because we have strong products, we're well equipped with the right technologies that we have for the challenges and opportunities for the future, but we have to continue to work now with discipline, we want to remain financially robust and to maintain our agency, we're moving at a rapid pace to shape the successful future.

Speaker Change: For this unique group together across all brands and all regions.

Thank you so much for your attention and now my colleague Arno unclear.

Arno: Our CFO and COO of the Volkswagen Group.

Arno: So now give you a brief overview of our financials. So on a you'll have to focus.

Arno Antlitz: Yes. Thank you, Oliver. A warm welcome here in Wolfsburg and to Autostadt, and to everyone who is here online. Now, ladies and gentlemen, in 2024, we took important strategic decisions, and we achieved key milestones. With progress we have made in the various fields, ranging from software to China and labor costs, we have laid the foundation for making the Volkswagen Group more competitive and financially robust. I would like to take the opportunity to thank all of our employees for their dedication and commitment. Against the backdrop of a challenging competitive environment, we have succeeded in delivering a respectable overall result. Vehicle sales in the full year 2024 totaled 9 million units, slightly below the previous year's figure. We are feeling the effects of intense price competition in China. In the rest of the world, our vehicle sales were at about the prior year level.

Speaker Change: Yes, Thank you Oliver.

Arno: All of them, yet because we're called me and boiler.

Speaker Change: He got involved and I had to outage.

Speaker Change: And to everyone, who is here online now ladies and gentlemen.

Speaker Change: <unk> 24, we took important strategic decision.

Speaker Change: Cheese key mines.

Speaker Change: With progress.

Speaker Change: We have made in the various fields ranging from software to China and labor costs, we have laid the foundation for making.

Speaker Change: The Volkswagen group more competitive and financially robust.

Speaker Change: I would like to take the opportunity to thank all of our employees for their dedication and commitment.

Speaker Change: For a bit perhaps on planes at the backdrop of a challenging competitive environment. We have succeeded in delivering ever expected below real result.

And the full year 2024 totaled 9 million units slightly below the previous year's figure.

Speaker Change: Our feeling the effect of intense price competition in China, and the rest of the world RV wholesale watch about prior year level.

Arno Antlitz: Despite the fall in vehicle sales, our sales revenue rose to about EUR 325 billion as a result of the improved sales revenue of our financial services division. Our operating profit was at EUR 19.1 billion, corresponding to an operating margin of 5.9%. The operating result was burdened by costs for the ongoing renewal of our product range, an increase in fixed costs, and restructuring expenses. Without these non-operating effects, we achieved an operating margin of 6.7% for the full year, 2024. Passenger cars achieved an operating result of EUR 11.4 billion. The operating margin was at 5.3%, about 1.5 percentage points below previous year's level. Traton continued its strong trend and was able to further increase its operating result to EUR 4.2 billion.

Speaker Change: Despite the fall in vehicle sales revenue rose to about 325 billion euros as a result.

Speaker Change: The improved sales revenue of our financial services Division operatives of Covid operating profit was 19.1 billion euros corresponding to an operating margin of 5.9%.

Speaker Change: The operating result was burdened by costs for the ongoing renewal of our product range and increase in fixed costs.

Speaker Change: Restructuring expenses.

Speaker Change: With.

Speaker Change: These nonoperating effects, we achieved an operating margin of 6.7% for the full year 2024, I guess, that's what I pick up here.

Speaker Change: Passenger cars.

Speaker Change: <unk>, an operating result of 11.4 billion you raise the operating margin.

Speaker Change: At five 3% about one and a half percentage points below previous year's level.

Speaker Change: Continued its strong trend and was able to further increase its operating result by two full point 2 billion you raised by.

Arno Antlitz: Return on sales was 9.1%. The financial services division achieved an operating result of EUR 3.1 billion as expected, corresponding to a fall of 18% year-on-year. Let's now take a look at the various factors which drove developments in the operating result of the passenger car segment. Volume, price, and mix effects had a slightly positive impact of EUR 3 billion. EUR 1.1 billion are related to volume effects. The slightly negative mix effect is chiefly due to the decline in vehicle sales at Porsche and Audi in the full year. Price effects were slightly negative in 2024, with an impact of half a billion euros. The trend of clearly rising overheads started in 2023 and continued in fiscal 2024, which resulted in a clear burden for our results.

Speaker Change: By Northern command sales was 9.1%, but I am not insurance services Division achieved.

Speaker Change: The result of.

Speaker Change: 1 billion euros.

Speaker Change: Corresponding to a fall of 18% year on year.

Speaker Change: Vas in Vietnam.

Speaker Change: Let's now take a look at the various factors, which drove developments in the operating results of the passenger car segment.

Speaker Change: Price and mix effect had a slightly positive impact of 8.3.

Speaker Change: 1.1 billion euros are related to volume effects, the slightly negative mix effect is chiefly due to the decline in vehicle sales at Porsche and Audi and the Flyers that check the box.

Speaker Change: So were slightly negative in 2024.

Speaker Change: With an impact of half a billion euros.

Speaker Change: Understood I unfunded.

Speaker Change: Long answer.

Speaker Change: Really rising as I had started in 2023 and continued in fiscal 'twenty 'twenty, four which resulted in nuclear baden-powell results major contributing factors for the rise to a higher personnel cost as a consequence of wage increases two collective agreements entered into 'twenty two.

Arno Antlitz: Major contributing factors for the rise were higher personnel costs as a consequence of wage increases through collective agreements in 2022. Extending our activities in, say, the battery business, building up Scout activities in the US, and ramping up the fully consolidated units in China led to a clear increase. One thing is clear. In order to guarantee Volkswagen's robustness in a demanding market environment, we have to provide decisive measures to counteract this development. We can only invest strongly in the future if we significantly reduce overheads and considerably improve the quality of our earnings. We have therefore launched extensive initiatives across all brand groups and brands to improve efficiency and productivity, and to establish competitive cost structures.

Speaker Change: We did but extending our activities in let's say the Scottrade business building up our scout activities in the U S and ramping up the fully consolidated units in China led to a clear increase.

Speaker Change: So one thing is clear in order to guarantee longs longs robustness in a demanding market environment, we have to provide decisive measures to contract. Its development. We can only invest strongly in the future if they significantly reduced as our heads and considerably improved the quality of earnings.

Speaker Change: And propane very helpful. Therefore launched extensive initiatives at Crestwood, Brian groups and brands to improve efficiency and productivity.

Speaker Change: Families competitive cost structures.

Arno Antlitz: In this context, we achieved significant progress through the Zukunft Volkswagen agreement, including a new wage agreement for Volkswagen AG, structural measures to reduce overcapacity at the plants in Germany, and a reduction of about 35,000 in the workforce at the German locations up to 2030. The Zukunft Volkswagen agreement is the decisive prerequisite for making Volkswagen AG and its businesses in Germany sustainably competitive and profitable. However, the agreement we reached just before Christmas does not mark the end, but just the beginning of this process. Only by consistently implementing the agreed bundle of measures over the next few years will Volkswagen AG be able to realize the necessary net cost effects of over EUR 4 billion in the medium term.

Speaker Change: Isn't he fostered in this context, we achieved significant progress through the future of Volkswagen agreement.

Speaker Change: Including a new wage agreement for Volkswagen AG structural measures to reduce as a capacities at the plants in Germany.

A reduction of about 35000 in the workforce at the German locations up to 2030.

Speaker Change: If I'm bottle took on Forex Fund me Zuko walks binding agreement is the decisive prerequisite for making Bulks among AG and its businesses in Germany, sustainably competitive and profitability before.

Speaker Change: However, the agreement we reached just before Christmas does not Mark the end, but just the beginning of this process only by consistently implementing the breed bundle of measures.

Speaker Change: For the next few years will Volkswagen E G be able to realize the necessary net cost effective as a $4 billion and 4 million euros in the medium term opera feedback.

Arno Antlitz: As expected, our proportional share in the operating result of our joint venture activities in China fell to EUR 1.7 billion in 2024 financial year. In a highly competitive market environment, we found a healthy compromise between profitability, on the one hand, and volume, on the other hand. As a result, deliveries in China fell by 10%, and the market share declined by 2 percentage points as anticipated at the beginning of the year. Expenses for the expansion of our local development activities and upfront expenditure for the upcoming renewal of the model portfolio had a negative impact on earnings in 2024, but will pay off in the medium term.

Speaker Change: As expected our proportionate share in the operating results of our joint venture activity in China fell to 1.7 billion euros in 2024.

Speaker Change: So in a highly competitive market environment, we found a healthy compromise between profitability on the one hand and volume on the other hand.

Speaker Change: Result, deliveries in China fell by 10% and the market share declined by 2% point percentage points as anticipated at the beginning of the year.

Speaker Change: Expenses for the expansion of our local development activities in upfront expenditure for the upcoming renewal of the multi portfolio had a negative impact on earnings in 2024, but they'll pay off in the medium term over the next two years, we are focusing on the development and market launch of new local models that we expect to be absolutely competitive intense.

Arno Antlitz: Over the next two years, we're focusing on the development and market launch of new local models that we expect to be absolutely competitive in terms of design, technology, and cost. Against this backdrop, we expect earnings in China initially to decline to between EUR 0.5 billion and 1 billion in fiscal 2025 before stabilizing from the end of 2025 onwards and showing a clearly positive trend over the next two years. As announced, our capital expenditure reached a peak in 2024. Expenditure on property, plant, and equipment and R&D in the automotive division increased by about 5% to EUR 37.9 billion in 2024. We are keeping our combustion engine vehicles competitive while investing in the transformation of our core business towards e-mobility and software.

Speaker Change: If design technology and cost.

Speaker Change: Against this backdrop, we expect earnings in China initially to decline to between 8.5 billion and 1 billion euros in fiscal 2025 before stabilizing from the end of 2025 onwards, and showing you clearly positive trend over the next two years.

Speaker Change: Visits their own cells Cobham.

Speaker Change: As announced on capital expenditure reached peaked in 2024 expenditure on property plant and equipment and R&D in the automobile.

Speaker Change: Motive division increased.

Speaker Change: About 5% to 37.9 billion euros in 2024.

Speaker Change: We are keeping a combustion engine vehicles competitive while investing in the transformation of our core business towards E mobility and software.

Arno Antlitz: At the same time, we are investing in the battery business and in strengthening our position in the US through Scout. In the 2025 to 2029 planning round, we expect capital expenditure to total EUR 165 billion, EUR 15 billion less than in the prior 2024 to 2028 planning round. This brings me to the financial outlook for fiscal 2025. We expect a significant tailwind from our revamped model portfolio of exciting vehicles and a slightly positive volume trend in the markets outside of China. We expect the implementation of Zukunft Volkswagen agreement, and continued cost discipline to have a significant positive impact on the cost side.

Speaker Change: At the same time, we are investing in the battery business and in strengthening our position in the U S through scout.

Speaker Change: I'm the bloggers with Afirma and the 2025 to 2020 non planning round, we expect capital expenditures to total 165 billion euros 15 billion euros less than in the prior 2024 to 2020 I ate planning round.

Speaker Change: Alright.

Speaker Change: And this brings me to the financial outlook for fiscal 2025.

Speaker Change: We expect a significant tailwind from our revamped mobile portfolio of exciting vehicles, and a slightly positive volume trend in the market outside of China.

We expect the.

Speaker Change: Patient of Zircon book Spa agreement and continued cost discipline to have a significant positive impact on the cost side on the other hand, the expansion of E V volumes, especially in Europe, and the ramp up costs of the new models and now of battery activities.

Arno Antlitz: On the other hand, the expansion of EV volumes, especially in Europe, and the ramp-up costs of the new models and our battery activities will have a negative effect on our earnings in 2025. On this basis, we expect the Volkswagen Group sales revenue to increase by up to 5%. The operating return on sales, operating return, is expected to be in a range of between 5.5% and 6.5%, with a significantly weaker Q1 in terms of margin and cash flow. This outlook does not include possible effects from the introduction or adjustment of trade tariffs or possible further restructuring expenses. On the other hand, the possible relaxation of CO2 regulations in Europe has also not been taken into consideration.

Speaker Change: We'll have a <unk>.

Speaker Change: The effect on our earnings in 2025.

Speaker Change: On this basis, we expect the Volkswagen group sales revenue to increase by up to 5%.

Speaker Change: Try it and return on sales.

Speaker Change: Operating return is expected to be in the range of between five 5%, that's 6.5% with a significantly weaker Q1 in terms of margin and cash flows.

Speaker Change: This outlook does not include possible effects from the injection introduction or adjustment of trade tariffs all possible further restructuring expenses on the other hand, the possible relaxation of tier two regulations in Europe has always had not been taken into consideration.

Sebastian Rudolph: The net cash flow should be in the range of EUR 2 to 5 billion. Ladies and gentlemen, we have strong brands, great products, and we have global scale. In view of these advantages, we cannot be satisfied with this financial outlook. It reflects the current challenges in the global economy and an industry that is in the midst of a fundamental transformation. We need to keep our combustion vehicles technology competitive, while investing in exciting electric models and software solutions, and achieve a robust positioning with a clear growth and investment approach for the US. To achieve this, it will be crucial to continue to offer our customers highly attractive vehicles and, at the same time, consistently reduce costs and continually improve our earning power. This will be precisely our main focus in the coming months and years. Thank you very much.

Arno Antlitz: The net cash flow should be in the range of EUR 2 to 5 billion. Ladies and gentlemen, we have strong brands, great products, and we have global scale. In view of these advantages, we cannot be satisfied with this financial outlook. It reflects the current challenges in the global economy and an industry that is in the midst of a fundamental transformation. We need to keep our combustion vehicles technology competitive, while investing in exciting electric models and software solutions, and achieve a robust positioning with a clear growth and investment approach for the US. To achieve this, it will be crucial to continue to offer our customers highly attractive vehicles and, at the same time, consistently reduce costs and continually improve our earning power. This will be precisely our main focus in the coming months and years. Thank you very much.

Speaker Change: Cash flow and the net cash flows should be in the range of between 225 billion euros.

Well I'm going to tell you I'm stuck with some Benjamin we have strong brands great products.

Speaker Change: And we have global scale and he is these advantages we cannot be satisfied with this financial outlook.

Speaker Change: It reflects the current challenges in the global economy, and an industry that is in the midst of a fundamental transformation.

Speaker Change: We need to keep our combustion vehicles vehicles technology competitive.

Speaker Change: While investing in exciting electric models and software solutions and achieve a regional a robust positioning with a clear growth and investment approach for the U S.

Speaker Change: To achieve this it will be crucial to continue to offer our customers highly attractive fee cause and at the same time consistently reduce costs and continually improving our earning power. This would be precisely our main focus in the coming months and years.

Speaker Change: Thank you very much.

Sebastian Rudolph: With this, I'd like to hand over to Sebastian Rudolph. Thank you very much, Arno, and thank you, Oliver, for these two presentations. With that, let's get started. We're happy to take your questions, dear colleagues. You either ask them right here in the room, and please, raise your hands if you want to put a question or also ask your questions in the chat window here on our stream, and I'm going to read those out then as well. Maybe you want to look to me for a while now until we see your hands here. Victoria Waldersee is going to start from Reuters. Please wait. That's Victoria right here. Wait until you get the roving microphone, and then we're ready to start. Hello. Thank you very much. I have two brief questions.

Arno Antlitz: With this, I'd like to hand over to Sebastian Rudolph.

Speaker Change: And with this I'd like to hand over to Sebastien Rudolph.

Sebastian Rudolph: Thank you very much, Arno, and thank you, Oliver, for these two presentations. With that, let's get started. We're happy to take your questions, dear colleagues. You either ask them right here in the room, and please, raise your hands if you want to put a question or also ask your questions in the chat window here on our stream, and I'm going to read those out then as well. Maybe you want to look to me for a while now until we see your hands here. Victoria Waldersee is going to start from Reuters. Please wait. That's Victoria right here. Wait until you get the roving microphone, and then we're ready to start.

Sebastien Rudolph: Thank you very much Arnaud. Thank you Oliver for these two presentations coming up and let's get started we're happy to take your questions to our colleagues for all of your other asking right here in the room and please raise your hands. If you want to put a question. All also ask your questions in the shop window here on a stream.

Speaker Change: I'm going to read those out in Venezuela. So maybe you want to look to me for a while though until we see your hands here Victoria both of its going to start from Reuters.

Speaker Change: Please wait let's Victoria right here, so wait until we've got a roving microphone and they weren't ready to start.

Victoria Waldersee: Hello. Thank you very much. I have two brief questions. Now, the fear of an economic downturn in the US, with the uncertainties that we see at the moment, for Donald Trump's policies, and this is actually something that has shown that the US share prices are plummeting this morning. How concerned are you about the recession, a possible recession in the US? How would you assess the customer sentiments in the US at the moment?

Speaker Change: Hello, Thank you very much I have two brief questions.

Victoria Waldersee: Now, the fear of an economic downturn in the US, with the uncertainties that we see at the moment, for Donald Trump's policies, and this is actually something that has shown that the US share prices are plummeting this morning. How concerned are you about the recession, a possible recession in the US? How would you assess the customer sentiments in the US at the moment? The second question, Mr. Blume, you announced a new vision for North America with a set of measures where you talked about local synergies. Now, could you say a little more what these measures would include? I know that tariff policies and upcoming tariff policies in a way are very hard to project, and it's hard to communicate also, I understand that.

Speaker Change: No.

Speaker Change: Fear of economic downtime in the U S. So with the uncertainty that we see at the moment.

Speaker Change: Donald Trump's policies and this is actually something that.

Speaker Change: That's shown that the U S share prices are plummeting. This morning, and how concerned are you about the recession a possible recession in the U S and how would you assess the customer sentiments are in the U S. At the moment and the second question. Mr. Bloomer, you run an unsteady revision for North America with a set of measures where you talked about local synergies.

Victoria Waldersee: The second question, Mr. Blume, you announced a new vision for North America with a set of measures where you talked about local synergies. Now, could you say a little more what these measures would include? I know that tariff policies and upcoming tariff policies in a way are very hard to project, and it's hard to communicate also, I understand that. Can you say something to reassure investors that the VW brand has a plan up their sleeve if in April those tariffs will come into effect versus Mexico, so we don't see a major hit on your financials?

Speaker Change: Could you.

Speaker Change: It's a little more what are these measures would include.

Speaker Change: I know that a tariff policies in upcoming tariff policies and the way are very hard to to protect and it's hard to communicate also I understand that but can you say something to reinsure investors that are the VW brand has a plan a sleeve if on an April those terrorists will come into effect versus spec.

Sebastian Rudolph: Can you say something to reassure investors that the VW brand has a plan up their sleeve if in April those tariffs will come into effect versus Mexico, so we don't see a major hit on your financials? Well, perhaps let me start with our vision there, and then, Arno, maybe you will follow up on the economic situation in the US and what our assessment of the situation is. Now, first off, we're deeply rooted in the United States in the sense that we've made major investments in our own activities in our plant in Chattanooga and also in South Carolina. We're talking about EUR 5 billion for each factory there. We have a software partnership now with Rivian, which comes in at another EUR 5 billion, so which is a powerful footprint.

Speaker Change: So we don't see a major hit on your financials.

Oliver Blume: Well, perhaps let me start with our vision there, and then, Arno, maybe you will follow up on the economic situation in the US and what our assessment of the situation is. Now, first off, we're deeply rooted in the United States in the sense that we've made major investments in our own activities in our plant in Chattanooga and also in South Carolina. We're talking about EUR 5 billion for each factory there. We have a software partnership now with Rivian, which comes in at another EUR 5 billion, so which is a powerful footprint.

Speaker Change: Perhaps let me start with our vision and then I know it might be if you will a follow up on the economic situation in the U S.

Speaker Change: Assessment of the situation is that first off we're deeply rooted in the United States in the sense that we've made major investments in our own activities.

Speaker Change: Planting Madden.

Speaker Change: Nougat and also in South Carolina, So we're talking about 5 billion for each a factory there.

Speaker Change: And also we have a software partnership now with Arabian which comes in another 5 billion.

Speaker Change: So which is a powerful footprint, we are employing tens of thousands of employees in North America. So great success last year with 15% sales increase unit sales inquiries for Volkswagen and 6% for the overall group than in the year before so we have a market share of about 4%.

Sebastian Rudolph: We are employing tens of thousands of employees in North America. Great success last year, 15 percent unit sales increase for Volkswagen, 6 percent for the overall group than in the year before. We have a market share of about 4%. Now, if you look at that large US market, which is the second-largest car market in the world, it shows you that with our big range of brands, there's certainly potential to leverage. This is exactly what we plan to do. We are investing in the future. We looked exactly at the segments. The biggest segment clearly is the pickup and large SUV segment, which accounts for about 1/3 of the overall volumes, but 1/2 of all sales.

Oliver Blume: We are employing tens of thousands of employees in North America. Great success last year, 15 percent unit sales increase for Volkswagen, 6 percent for the overall group than in the year before. We have a market share of about 4%. Now, if you look at that large US market, which is the second-largest car market in the world, it shows you that with our big range of brands, there's certainly potential to leverage. This is exactly what we plan to do. We are investing in the future. We looked exactly at the segments. The biggest segment clearly is the pickup and large SUV segment, which accounts for about 1/3 of the overall volumes, but 1/2 of all sales.

Speaker Change: If you look at that launch U S market, which is the second largest car market in the world.

Speaker Change: It shows you that without a big range of brands, there's certainly potential to leverage and this is exactly what we're planning to do we are investing in the future we looked exactly.

Speaker Change: The segments in the biggest segment clearly is the pick up in a large SUV.

Speaker Change: Men, which accounts for about one third of the overall volumes are about half of all yourself.

Sebastian Rudolph: It's for that reason that we decided to invest in that segment, and not with a traditional brand of the Volkswagen Group, but by launching a well heritage US brand, Scout, where we've acquired the naming rights. That brand in the past was one of the co-founders of the pickup segment. Therefore, we are going to revitalize it with electric vehicles and range extender. Last September, we've received excellent feedback, have many advance reservations for this vehicle also now. This is part of our vision for the future. Now, the individual brands are now also going to refine their product strategy. Take Porsche, for example. The US market is the largest single market for that brand. That's our plan going forward.

Oliver Blume: It's for that reason that we decided to invest in that segment, and not with a traditional brand of the Volkswagen Group, but by launching a well heritage US brand, Scout, where we've acquired the naming rights. That brand in the past was one of the co-founders of the pickup segment. Therefore, we are going to revitalize it with electric vehicles and range extender. Last September, we've received excellent feedback, have many advance reservations for this vehicle also now. This is part of our vision for the future. Now, the individual brands are now also going to refine their product strategy. Take Porsche, for example. The US market is the largest single market for that brand. That's our plan going forward.

Speaker Change: So it's for that reason that we decided to invest in that segment are not with a traditional brand of the Volkswagen group, but by launching a well heritage U S friends Scout well.

Speaker Change: We've required.

Speaker Change: Naming rights.

Speaker Change: And that brand in the past was one of the Cofounders of the pickup segment. So therefore, we're going to revitalize it with electric vehicles on range Extender last September we have received excellent feedback of many advanced reservation for this vehicle also now. So this is part of our vision for the future not to go virtual brands. I know also are going to refine that.

Speaker Change: Our product strategy take Porsche for example, the U S market is the largest single market without brand. So we see a lot of potential for them.

Speaker Change: So that's our plan going forward talking about tariffs.

Sebastian Rudolph: Talking about tariffs, well, there are a number of scenarios that we've calculated here. Mind you, this is a little more complex. It's not only about the US and Europe. It's about Canada. It's about Mexico. Nothing's on the table right now as we speak. We will rely on our strong footprint in the US and where we have invested, and we have plans going forward. I told you about that. We also are hopeful that there's going to be a fair compensation between the US and Europe when it comes to the trade balance. It takes many things to consider. It's not only commodities. It's digital flows of products, especially from the US to Europe. There's quite actually something coming in onto our continent. Therefore, we will be getting into a dialogue there and make our voices heard.

Oliver Blume: Talking about tariffs, well, there are a number of scenarios that we've calculated here. Mind you, this is a little more complex. It's not only about the US and Europe. It's about Canada. It's about Mexico. Nothing's on the table right now as we speak. We will rely on our strong footprint in the US and where we have invested, and we have plans going forward. I told you about that. We also are hopeful that there's going to be a fair compensation between the US and Europe when it comes to the trade balance. It takes many things to consider. It's not only commodities. It's digital flows of products, especially from the US to Europe. There's quite actually something coming in onto our continent. Therefore, we will be getting into a dialogue there and make our voices heard.

Speaker Change: Well there are a number of scenarios that we've calculated here and mind you. This is a little more complex, it's not only about the U S and Europe, It's about Canada, It's about Mexico Nothing's off the table right now as we speak we will rely on our strong footprint in the U S and why we have invested and we have plans going forward I told you about that but we also are hopeful.

Speaker Change: But that's going to be a fair compensation between the U S and Europe when it comes to the trade balance and it takes many things to consider it's not only a commodities its digital flows of product.

Speaker Change: Especially from the U S to Europe, there's quite actually something coming onto other continent. So therefore, we will be getting into a dialogue and make our voices heard but I know people like to say a word on the economic development Hello, guys. As you've said there is a certain uncertainty in the marketplace that is true.

Sebastian Rudolph: Now, Arno, would you like to say a word on the economic developments? Well, yes, as you've said, there is a certain uncertainty in the marketplace. That's true. We can only focus on what we can influence, where we have agency. As Oliver has just said, we have a global strategy, which we believe is spot on. We have a strong market share in Europe of about 25% that we want to defend. In China, no later than 2026, we want to grow back and attack and grow our market shares. 2025 probably will be another dip in our market share in China, but we want to grow in the US. As Oliver has just said, there are a number of plans that we have, and we are going to continue with that. Very single-minded, so. Okay, we'll stay with the agencies.

Oliver Blume: Now, Arno, would you like to say a word on the economic developments?

Arno Antlitz: Well, yes, as you've said, there is a certain uncertainty in the marketplace. That's true. We can only focus on what we can influence, where we have agency. As Oliver has just said, we have a global strategy, which we believe is spot on. We have a strong market share in Europe of about 25% that we want to defend. In China, no later than 2026, we want to grow back and attack and grow our market shares. 2025 probably will be another dip in our market share in China, but we want to grow in the US. As Oliver has just said, there are a number of plans that we have, and we are going to continue with that. Very single-minded, so.

Speaker Change: But we can only focus on what we can influence where we have agency and as all of US just said, we have a global strategy, which we believe is spot on we have a strong market share in Europe of about 25% that we want to defend in China. No later than 'twenty 'twenty six we want to grow Bakken attack and grow our market shares.

Speaker Change: Five probably will be another dip in our market share in China, but we want to grow in the U S. As Oliver has just added to the number of plants that we have and we're going to continue.

Sebastian Rudolph: Okay, we'll stay with the agencies. Frank Johannsen from DPA was next. Wait for the microphone, please.

Speaker Change: Single minded.

Speaker Change: Okay, we'll stay with your agents as Frank Johansson from D. Payer. It was next to so wait for the microphone. Please.

Frank Johannsen: Frank Johannsen from DPA was next. Wait for the microphone, please. Thank you. Good morning, everyone. A question on the US tariffs. Just to follow up, what may have been surprising that the US is going to impose tariffs against Canada. You're just building one of your battery factories there. Now, with hindsight, wasn't that perhaps not a good idea? Are you reconsidering that investment? Because those batteries from Canada should have been delivered to the US. Now, if they apply 25% of tariffs, it wouldn't make sense, would it? With your investment in Canada, that is. That was number one. Number two, with Porsche, you announced that you're going to build more ICE vehicles. Is that only true for Porsche, or do you have plans for other brands as well?

Frank Johannsen: Thank you. Good morning, everyone. A question on the US tariffs. Just to follow up, what may have been surprising that the US is going to impose tariffs against Canada. You're just building one of your battery factories there. Now, with hindsight, wasn't that perhaps not a good idea? Are you reconsidering that investment? Because those batteries from Canada should have been delivered to the US. Now, if they apply 25% of tariffs, it wouldn't make sense, would it? With your investment in Canada, that is. That was number one. Number two, with Porsche, you announced that you're going to build more ICE vehicles. Is that only true for Porsche, or do you have plans for other brands as well?

Speaker Change: Thank you.

Speaker Change: Good morning, everyone.

Speaker Change: Uh huh.

Speaker Change: Question on the U S tariffs and just to follow up on what may be surprising that Oh, it's going to impose tariffs against Canada, you'll just building one of your battery factories that now with hindsight wasn't that perhaps not a good idea are you reconsidering that investment because those batteries from Canada should have been delivered to their guests now if they apply 25.

Speaker Change: <unk> of tariffs it wouldn't make sense would it with you.

Speaker Change: But in Canada that is so that was number one and number two with Porsche you announced that youre going to build more I see vehicles.

Speaker Change: Is that only true for Porsche or do you have plans for other fronts as well because the sales numbers over for Evs for all of them, it's rather weak and the third question the carbon emission targets of the European Union. There's just been changes recently, which are in favor of the car industry does it mean.

Sebastian Rudolph: Because the sales numbers of EVs for all of them is rather weak. The third question, the carbon emission targets of the European Union. There has just been changes recently, which are in favor of the car industry. Does it mean you're on the right track? Can you tick it off? Is this carbon business okay, or will we be back to square one in three years' time with that discussion? Mr. Johannsen, let me start with Canada first. You're right in what you're saying. The battery cell factory has been sited there, and this is going to be a focus for the US market, but also for other regions when it comes to battery deliveries. Now, we have to see how this all plays out.

Frank Johannsen: Because the sales numbers of EVs for all of them is rather weak. The third question, the carbon emission targets of the European Union. There has just been changes recently, which are in favor of the car industry. Does it mean you're on the right track? Can you tick it off? Is this carbon business okay, or will we be back to square one in three years' time with that discussion?

Speaker Change: You're on the right track can you take it off is this carbon business, okay or will we be back to square one in three years' time without discussion by Mr. Johansson, Let me start with Canada first.

Oliver Blume: Mr. Johannsen, let me start with Canada first. You're right in what you're saying. The battery cell factory has been sited there, and this is going to be a focus for the US market, but also for other regions when it comes to battery deliveries. Now, we have to see how this all plays out. We do realize that the US car industry as well is strongly vertically integrated, both in Canada and Mexico. I would assume that discussions will be seen in that context, and we'll have to see and face up to what will happen. In terms of Porsche, our product strategy has been revised.

Speaker Change: Right.

Speaker Change: Staying in the battery cell factory has been selected there and this is going to be.

Speaker Change: Our focus for the U S market, but also for other regions. When it comes to Patrick deliberation that we have to see how this all plays out we.

Sebastian Rudolph: We do realize that the US car industry as well is strongly vertically integrated, both in Canada and Mexico. I would assume that discussions will be seen in that context, and we'll have to see and face up to what will happen. In terms of Porsche, our product strategy has been revised. That is also because we are currently looking at the ramp-up schedule for e-mobility across the different regions. Because our strategy has always to offer a mix of ICEs, hybrids, and BEVs. Now, what we do is hedging. What hedging means in the segments, we are going to invest in all drivetrain options. We expanded that plan in order to be as flexible as we possibly can, depending on the different speed at which the world regions develop.

Speaker Change: We do realize that the U S car industry as well as strongly vertically integrated both in Canada, and Mexico. So I would assume that our discussions will be seen in that context, and we'll have to see and face up to what will happen.

Speaker Change: In terms of portion of our product strategy is being revised.

Oliver Blume: That is also because we are currently looking at the ramp-up schedule for e-mobility across the different regions. Because our strategy has always to offer a mix of ICEs, hybrids, and BEVs. Now, what we do is hedging. What hedging means in the segments, we are going to invest in all drivetrain options. We expanded that plan in order to be as flexible as we possibly can, depending on the different speed at which the world regions develop.

Speaker Change: And that is also because we are currently looking at are the ramp up schedule for E mobility across the different regions because our strategy has always to offer a mix of Ics hybrid and ppvs now what we do is hedging what hedging means in the segments, we're going to invest in all drivetrain.

Speaker Change: And options.

Speaker Change: Pondered that plan in order to be as flexible as we possibly can depending on the different speed at which the world regions develop.

Sebastian Rudolph: We are scrutinizing all the brands in that context, because we have connected platforms, multi-brand platforms that we benefit from. For us, it is, if you will, an incremental revision of our product strategy, and we're very pragmatic about it, depending on the individual market developments in the regions of the world. As far as the carbon emission targets are concerned, which is currently in place for 2025, well, I'm very positive in terms of what the European Union has decided now. We were there two weeks ago meeting with President von der Leyen, and the EU did a reality check. The ramp-up of e-mobility was not quite as dynamic as has been expected a couple of years ago when those targets were defined.

Oliver Blume: We are scrutinizing all the brands in that context, because we have connected platforms, multi-brand platforms that we benefit from. For us, it is, if you will, an incremental revision of our product strategy, and we're very pragmatic about it, depending on the individual market developments in the regions of the world. As far as the carbon emission targets are concerned, which is currently in place for 2025, well, I'm very positive in terms of what the European Union has decided now. We were there two weeks ago meeting with President von der Leyen, and the EU did a reality check. The ramp-up of e-mobility was not quite as dynamic as has been expected a couple of years ago when those targets were defined.

Speaker Change: We're scrutinizing all the brands are in that context, because we have connected platforms multi brand platforms that we benefit from so for US. It is if you will and incremental revision of our product strategy and we're very pragmatic about it depending on the individual market developments in the regions of the world as far.

Speaker Change: Arista carbon emission targets are concerned which is currently in place for 2025, well I'm very positive in terms of what the European Union has decided no. We were there two weeks ago meeting with the president of underlying.

Speaker Change: And then you did a reality check the ramp up of E. Mobility was not quite as dynamic as has been expected a couple of years ago. When those targets were defined so therefore I welcome this push to employers.

Sebastian Rudolph: Therefore, I welcome this push to apply a softer schedule over three years, 2025, 2026, and 2027 in one go, as it were. We're not going to let up on the carbon emission side. It's just that the transition period has been stretched a little to give more flexibility to the car makers. We, beyond that, have also agreed that the following steps, you know, up to and including 2030 will be also talked about in the next couple of months. Why? Because we want to set the right milestones. We want to revise how e-mobility is developing throughout those years. It's not only about products, mind you. We're in good shape.

Oliver Blume: Therefore, I welcome this push to apply a softer schedule over three years, 2025, 2026, and 2027 in one go, as it were. We're not going to let up on the carbon emission side. It's just that the transition period has been stretched a little to give more flexibility to the car makers. We, beyond that, have also agreed that the following steps, you know, up to and including 2030 will be also talked about in the next couple of months. Why? Because we want to set the right milestones. We want to revise how e-mobility is developing throughout those years. It's not only about products, mind you. We're in good shape.

Speaker Change: We apply a softer schedule over three years 25, 26 and 27 in one go as it were.

Speaker Change: But we're not going to let up on the carbon emission side. It's just that the transition period has been stretched a little to give more flexibility to the car makers.

Speaker Change: We were above and beyond that has also agreed to that to the following steps up to and including 22. It will be also talked about in the next couple of months why because we want to set the right milestones we want to revise how E mobility is developing throughout those years, it's not only about product <unk>. So we're in a very well.

Sebastian Rudolph: We are by far a market leader for BEVs in Europe, but it's about the general conditions of charging infrastructure, energy prices, possible subsidy regimes, especially for entry-level vehicles, market regulation, that sort of thing. It's different in every country. Therefore, I very much welcome the initiative taken by the European Union and also with the new commissioners.

Oliver Blume: We are by far a market leader for BEVs in Europe, but it's about the general conditions of charging infrastructure, energy prices, possible subsidy regimes, especially for entry-level vehicles, market regulation, that sort of thing. It's different in every country. Therefore, I very much welcome the initiative taken by the European Union and also with the new commissioners.

Speaker Change: We're in good shape, we are by far the market leader for babies in Europe, but it's about the general conditions of charging infrastructure energy prices.

Speaker Change: Possible subsidy regimes serve especially for entry level vehicles market regulation that sort of thing. So it's different in every country. So therefore I very much welcome the initiative taken by the European Union and also with the new Commissioners.

Speaker Change: 100 <unk>.

[Company Representative] (Volkswagen AG): We will now have Handelsblatt, Spiegel, and Süddeutsche. Let's start with Lazar Backovic, second row. Over to you, sir. Microphone will be coming.

Sebastian Rudolph: We will now have Handelsblatt, Spiegel, and Süddeutsche. Let's start with Lazar Backovic, second row. Over to you, sir. Microphone will be coming.

Speaker Change: And all I have.

Speaker Change: Hundreds that Spiegel N Z launches, so let's start with less abaco rich a second trial.

Michael: Over to you Sir Michael.

Speaker Change: The microphone will be coming.

Lazar Backovic: Hello. Good morning. Thank you very much for the presentation. I would like to follow up on the question of Frank Johannsen, because I'm still not very clear about it. When we take a look at the drivetrain mix, you yourself are saying and underlining this in the strategy that you want to stay flexible. In concrete terms, what does that mean for the mix of drivetrains in the next years? Maybe you can give us a split EVs, hybrids, and ICEs. And with Porsche, you already have a new wording for your electric strategy. With Volkswagen, the core brand, you still have the target to no longer sell ICEs in 2033. Will you stay with that in Europe?

Speaker Change: Hello good.

Speaker Change: Good morning. Good morning, Thank you very much for the presentation.

Speaker Change: It's still up on the question of Frank Johansson, because I'm still not very clear about it.

Speaker Change: Take a look at the drive chain makes you yourselves are saying and underlining. This isn't a strategy that you want to stay flexible and concrete times, what does that mean for the mix of drive trains and next year's maybe you can give us a split evs hybrids and iced tea ease and Porsche you already have a new wording for U a E.

Speaker Change: Electric strategy with Volkswagen the call Ron you still have the target to no longer sell E. I see he's in 'twenty 33, So will you stay with us in Europe.

Sebastian Rudolph: Well, Porsche, just briefly to say that last year, Porsche had a share of electrified vehicles of 27%, half of them true EVs, EV only. That's a very positive result and quite a good situation compared to the competition. For this year, we ex-

Oliver Blume: Well, Porsche, just briefly to say that last year, Porsche had a share of electrified vehicles of 27%, half of them true EVs, EV only. That's a very positive result and quite a good situation compared to the competition. For this year, we ex-

Courts are well pushed us briefly to say that last year portion of share of electrified vehicles of 27% half of them eat to Evs EV only that's a very positive result, and did quite a good situation compared to the competition and for this year we expect.

Arno Antlitz: Expect a clear step further into the future. What is important, and this is true for all the other brands, despite all this, we want to have as big a flexibility as possible far into the 2030s and offer all of the various drive trains. At the end, the number of electrified vehicles will depend on market development. Customers decide what they will buy. We can make our contribution by having attractive cars on the market and also at the right, with the right pricing. Now with Volkswagen, we have given a clear signal. End of the year, we will offer cars for EUR 25,000. Last year, we presented ID. EVERY1 that will be at around EUR 20,000. On the volume side, that will bring a major push.

Oliver Blume: Expect a clear step further into the future. What is important, and this is true for all the other brands, despite all this, we want to have as big a flexibility as possible far into the 2030s and offer all of the various drive trains. At the end, the number of electrified vehicles will depend on market development. Customers decide what they will buy. We can make our contribution by having attractive cars on the market and also at the right, with the right pricing. Now with Volkswagen, we have given a clear signal. End of the year, we will offer cars for EUR 25,000. Last year, we presented ID. EVERY1 that will be at around EUR 20,000. On the volume side, that will bring a major push.

Speaker Change: A clearly a clear step further into the future what is important and this is true for all the other brands.

Speaker Change: Despite all this we want to have as big a flexibility as possible fall into the 20 <unk> and also all of the various drive trains and the number of electrified vehicles will depend on market development customers decide what they will buy we can make a contribution by having attractive cause on.

Speaker Change: The market and also at the right with the right price signal with Volkswagen we have given a clear signal end of the year. We will offer calls for 25000 U S. Last year, we presented I D. Every one that will be at around 20000 euros and on the volume side that will bring them.

Arno Antlitz: On the other side, and that's our entrepreneurial obligation, we have to have a broad spread. Arno Antlitz said it, of course, that's a burden for our result initially, but it gives us a clear, clearly higher robustness. The further targets we would show further milestones for, depending on the development of the global regions. We are prepared when customers want to move to EVs, we are prepared to move it up. This is just as true for Porsche. 80% could be delivered in an electrified fashion till 2030, but we deem it not to be realistic with the current development. For Volkswagen, we do exactly the same. For 2035, we will see how transition will be done for Europe.

Oliver Blume: On the other side, and that's our entrepreneurial obligation, we have to have a broad spread. Arno Antlitz said it, of course, that's a burden for our result initially, but it gives us a clear, clearly higher robustness. The further targets we would show further milestones for, depending on the development of the global regions. We are prepared when customers want to move to EVs, we are prepared to move it up. This is just as true for Porsche. 80% could be delivered in an electrified fashion till 2030, but we deem it not to be realistic with the current development. For Volkswagen, we do exactly the same. For 2035, we will see how transition will be done for Europe.

Speaker Change: You push on the other side and that's our entrepreneurial obligation we have to have a broad spread I know I've said it of course, that's a battle for a result, initially but it gives us a clear.

Speaker Change: So clearly higher robustness.

Speaker Change: Further targets, we would choose set of milestones for depending on the development of the global regions. We are prepared when customers want to move to Evs. We are prepared to move it up this is just as true for Porsche.

Speaker Change:

Speaker Change: 80% it could be delivered in an electrified fashion till 'twenty.

Speaker Change: Not to be realistic with the current development and for Volkswagen will do exactly the same in footprint 75, we will see how transition will be done for Europe and it would be my wish that it should be designed to get more flexible as you do it for 2025, but we have responsibility for sustainability. We go with Evs and we believe this is.

Alexander Demling: It would be my wish that it should be designed a bit more flexible as you do it for 2025. We have responsibility for sustainability. We go with EVs, and we believe this is the superior technology for the future. Let's stay in the second row. Alexander Demling, Der Spiegel, you get the microphone. Good morning, Mr. Blume. Last year, we have heard about the Chinese market say you're not participating in the price fight. You have to wait for it to somewhat settle. Last year, not so much has happened. What do you believe needs to happen so that this price fight comes to an end? How much consolidation do you have to see? What are you waiting for? Second question on the United States.

Oliver Blume: It would be my wish that it should be designed a bit more flexible as you do it for 2025. We have responsibility for sustainability. We go with EVs, and we believe this is the superior technology for the future.

Speaker Change: The superior technology for the future that stay in the second row Alexander dampening. Our speakers you get the microphone good morning, Mr Bloom them.

Sebastian Rudolph: Let's stay in the second row. Alexander Demling, Der Spiegel, you get the microphone.

Alexander Demling: Good morning, Mr. Blume. Last year, we have heard about the Chinese market say you're not participating in the price fight. You have to wait for it to somewhat settle. Last year, not so much has happened. What do you believe needs to happen so that this price fight comes to an end? How much consolidation do you have to see? What are you waiting for? Second question on the United States. In how far are you in a position in a certain case to move production from Puebla into the US? Would it be possible to build certain cars in Chattanooga to circumvent certain tariffs? Would that be an option? And finally, you said that you are looking for contacts to the Trump administration in order to get your position heard. Do you have these meetings, and at what level do they take place?

Speaker Change: Last year we.

Speaker Change: We have heard about the Chinese market say youre not participating in the price side, you have to wait for it to somewhat settle and last year and not so much has happened what do you believe needs to happen. So that this price fight. It comes to an end how much consolidation do you have to see what are you waiting for second question.

Speaker Change: On the United States and how far are you in a position in <unk>.

Arno Antlitz: In how far are you in a position in a certain case to move production from Puebla into the US? Would it be possible to build certain cars in Chattanooga to circumvent certain tariffs? Would that be an option? And finally, you said that you are looking for contacts to the Trump administration in order to get your position heard. Do you have these meetings, and at what level do they take place? Right. I would start with the last part of your question and then talk about China, and Arno Antlitz as our head of North America can tell us something about how we handle Mexico and Canada. Contacts with the US government, we have maintained those in the past, and we would wait for the following steps. First of all, something concrete has to be put on the table.

Speaker Change: Certain case to move production from play a lot into the U S would it be possible to build certain cause in Chattanooga to circumvent certain tariffs would that be an option and finally you said.

Speaker Change: Yeah.

Speaker Change: You are looking for contact to the Trump administration.

Speaker Change: In order to see.

Speaker Change: Position had do you have these meetings and at what level do they take place.

Oliver Blume: Right. I would start with the last part of your question and then talk about China, and Arno Antlitz as our head of North America can tell us something about how we handle Mexico and Canada. Contacts with the US government, we have maintained those in the past, and we would wait for the following steps. First of all, something concrete has to be put on the table.

Speaker Change: Right I would start with the last part of your question and then talk about China, and I know analysts as I'll head of North America can do something about how we handle Mexico and Canada. So contacts with a U S. Government, we have maintained days in the past.

Speaker Change: And we would wait for the following steps first of all something concrete has to be put on the table then.

Arno Antlitz: Between the US and Europe, there is the European Commission that is called for and once we have a new federal government. Afterwards, we would start the discussions once the parameters are clear and would express our position. Now on to China. What we can say is that the Volkswagen Group last year has worked in an economically feasible fashion as one of the very few companies in China, because we are still strong in the combustion engine and hybrid market. In e-mobility, we only have a very weak footprint. Two years ago, we have changed our product strategy quite decisively with the approach to develop far more in China for Chinese customers and to build the cars there. At the end, success will have to happen in China.

Oliver Blume: Between the US and Europe, there is the European Commission that is called for and once we have a new federal government. Afterwards, we would start the discussions once the parameters are clear and would express our position. Now on to China. What we can say is that the Volkswagen Group last year has worked in an economically feasible fashion as one of the very few companies in China, because we are still strong in the combustion engine and hybrid market. In e-mobility, we only have a very weak footprint. Two years ago, we have changed our product strategy quite decisively with the approach to develop far more in China for Chinese customers and to build the cars there. At the end, success will have to happen in China.

Speaker Change: Between the U S and Europe, there is the EU Commission.

Speaker Change: It's called for and once we have a new federal government and afterwards, we would start the discussions once the parameters are clear and would express are positioned now onto China.

Speaker Change: What we can say is that the Volkswagen group last year has black it in an economically feasible fashion as one of the very few companies in China.

Speaker Change: As we are still strong in the combustion engine and hybrid market in E. Mobility, we only have a very weak footprint two years ago, we have changed our product strategy quite decisively with the approach to produce far more in China developed pharma in China for Chinese customers to built the cause the end at the end.

Speaker Change: Success will have to happen in China, you have talked about the pricing competition. It will depend on having the right type of products attractive products, we're developing them as we speak with Iran. China platform for the Volkswagen Group with Orion, China Electronic architecture, which we are developing together with our partner Xiao Ping and without cat.

Arno Antlitz: You have talked about the pricing competition. It will depend on having the right type of products, attractive products. We're developing them as we speak with our own China platform for the Volkswagen Group, with our own China electronic architecture, which we are developing together with our partner XPENG and with our CARIAD partner. Then with the first products will come at the end of 2025 through Audi with a cooperation of SAIC, then with a big product drive in 2026. The decisive thing, in particular, when you're talking about the price competition, the decisive thing is to be in the right price position. For us, there's nothing to be said against developing at the same cost level and produce at the same cost level as our Chinese competitors do it.

Oliver Blume: You have talked about the pricing competition. It will depend on having the right type of products, attractive products. We're developing them as we speak with our own China platform for the Volkswagen Group, with our own China electronic architecture, which we are developing together with our partner XPENG and with our CARIAD partner. Then with the first products will come at the end of 2025 through Audi with a cooperation of SAIC, then with a big product drive in 2026. The decisive thing, in particular, when you're talking about the price competition, the decisive thing is to be in the right price position. For us, there's nothing to be said against developing at the same cost level and produce at the same cost level as our Chinese competitors do it.

Speaker Change: Partner.

Speaker Change: And then with a fast products will come at the end of 2025 foot argue with the cooperation of Spike then with a big product drive in 'twenty 'twenty six.

Speaker Change: The decisive thing and particularly when you're talking about the price competition decisive thing is to be in the right price positioning.

Speaker Change: For us there's nothing to be set against a developing at the same cost level and produce at the same cost level as our Chinese competitors do it and once we have the right type of product with a brand image at the quality that Volkswagen group has we are confident that we will be able to have success stories as we have them with I C E cars and hybrid and two.

Arno Antlitz: Once we have the right type of product with the brand image and the quality that Volkswagen Group has, we are confident that we will be able to have success stories as we have them with ICE cars and hybrids and to bring that into the electric segment. Maybe, Arno, you can talk about it. Yes, tariffs, of course. Everyone wants to know how things will be continuing. In the automotive industry, you can't have a short-term reaction. You can't move a car and localize it overnight or in a couple of weeks. We're looking at it. We see our American competitors having significant capital expenditure in Mexico. Part of their business happens there. This is true for other competitors. You simply have to wait and see what's happening there. There's one thing.

Oliver Blume: Once we have the right type of product with the brand image and the quality that Volkswagen Group has, we are confident that we will be able to have success stories as we have them with ICE cars and hybrids and to bring that into the electric segment. Maybe, Arno, you can talk about it.

Speaker Change: Bring that into the electric segment and maybe you can talk about it yes tariffs of course.

Arno Antlitz: Yes, tariffs, of course. Everyone wants to know how things will be continuing. In the automotive industry, you can't have a short-term reaction. You can't move a car and localize it overnight or in a couple of weeks. We're looking at it. We see our American competitors having significant capital expenditure in Mexico. Part of their business happens there. This is true for other competitors. You simply have to wait and see what's happening there. There's one thing.

Speaker Change: Everyone wants to know how things will be continuing in the automotive industry you can't have a short term reaction you can't.

Speaker Change: A move a car and localize it overnight.

Speaker Change: And a couple of weeks, we're looking at it we see our American competitors, having significant capital expenditure and makes it what parts of that business happens there and also this is true also true for other competitors you simply have to wait and see what's happening there that's one thing.

I didn't hear my business that.

Sebastian Rudolph: Which gives a bit of stability in the long run, and I have to preempt that this has nothing to do with tariffs and the discussion in the US. You know, in the Zukunft Volkswagen agreement, we're reducing capacity in, I'd say, the German plants. We adapt them to the market, to market conditions. We have also decided that we move the Golf to Mexico and to make space for further electric models in Wolfsburg. The core of the Golf is an European car, irrespective of the tariff situation that would also secure a certain utilization in the midrun. Now on to Paulina Werminghausen. Wait for the microphone. It's in the third row, please.

Arno Antlitz: Which gives a bit of stability in the long run, and I have to preempt that this has nothing to do with tariffs and the discussion in the US. You know, in the Zukunft Volkswagen agreement, we're reducing capacity in, I'd say, the German plants. We adapt them to the market, to market conditions. We have also decided that we move the Golf to Mexico and to make space for further electric models in Wolfsburg. The core of the Golf is an European car, irrespective of the tariff situation that would also secure a certain utilization in the midrun.

Speaker Change: Which gives a bit of stability in the long run and I have to preempt that this has nothing to do with tariffs in the discussion in the U S. You know in the Volkswagens Xu consent agreement, we are reducing capacity.

Speaker Change: And I'd say, the German plants, we adapt them to the market to market conditions, but.

Speaker Change: We have also decided that we moved it off to Mexico and to make space for the electric models and was back in the Gulf is at the core of the Gulf is an M. European car irrespective of the tariff situation that would also secures that utilization in the mid one again yet.

Sebastian Rudolph: Now on to Paulina Werminghausen. Wait for the microphone. It's in the third row, please.

Speaker Change: Now onto Paulina, Birmingham was and.

Speaker Change: Wait for the microphone, it's in the third row. Please.

Paulina Werminghausen: Paulina Werminghausen, Süddeutsche.

Speaker Change: And putting out any houses Paulina vitamin housing firms you tortured. So I took my sons lets you just said that you need to make sure I see vehicles competitive and at the same time investing to a fascinating evs now how difficult is the dual pronged strategy. One was when will be the year that you're producing there.

Sebastian Rudolph: Paulina Werminghausen from Süddeutsche Zeitung. Mr. Antlitz, you just said that you need to make your ICE vehicles competitive and at the same time invest into fascinating EVs. Now, how difficult is that dual-pronged strategy? When will be the year that you're producing the last ICE vehicles? And then the second question, you know, customers are not really overly enthusiastic about EVs. What do you expect of the incoming new government to improve that situation? Okay, maybe I take that first part and Oliver will talk about government relations. Now, what is important for us, if you look at the competitive landscape, you see that about three or four years ago we started with our new strategy, which is about investing into the last generation of internal combustion engines. The new Passat, the new Tiguan.

Paulina Werminghausen: Paulina Werminghausen from Süddeutsche Zeitung. Mr. Antlitz, you just said that you need to make your ICE vehicles competitive and at the same time invest into fascinating EVs. Now, how difficult is that dual-pronged strategy? When will be the year that you're producing the last ICE vehicles? And then the second question, you know, customers are not really overly enthusiastic about EVs. What do you expect of the incoming new government to improve that situation?

Speaker Change: Last is E vehicles.

Speaker Change: And then the second question if customers are not really overly enthusiastic about evs, what do you expect with incoming new government to improve that situation. Okay, maybe I take take that first part and I'll.

Arno Antlitz: Okay, maybe I take that first part and Oliver will talk about government relations. Now, what is important for us, if you look at the competitive landscape, you see that about three or four years ago we started with our new strategy, which is about investing into the last generation of internal combustion engines. The new Passat, the new Tiguan.

Speaker Change: But we will talk about our.

Speaker Change: Government relations.

Speaker Change: What's important for us if you look at the competitive landscapes, you see that about three or four years ago. We started with a new strategy, which is about investing into the last generation of internal combustion engines. So the new episodes and your take on we're getting a new T rock as well.

Sebastian Rudolph: We're getting a new T-Roc as well. At the same time, we have been very clear about ambitious ramp-up of EV vehicles, and we continue to do that. The ID.3, the ID.4, the ID.7, very successful vehicle. That, yes, was a double effort and that was borne out in our upfront investments. Some capital market players were criticizing us for that. The EUR 180 billion investments, they said was a tall order. We now see that this is justifying itself. We have still compelling vehicles, plug-in hybrid vehicles, the Golf, the Passat, with more than 100km of driving range. At the same time, we have the BEVs in our product range as well.

Arno Antlitz: We're getting a new T-Roc as well. At the same time, we have been very clear about ambitious ramp-up of EV vehicles, and we continue to do that. The ID.3, the ID.4, the ID.7, very successful vehicle. That, yes, was a double effort and that was borne out in our upfront investments. Some capital market players were criticizing us for that. The EUR 180 billion investments, they said was a tall order. We now see that this is justifying itself. We have still compelling vehicles, plug-in hybrid vehicles, the Golf, the Passat, with more than 100km of driving range. At the same time, we have the BEVs in our product range as well.

Speaker Change: At the same time, we have been very clear about ambitious ramp up of EV vehicles, and we continue to do that the RT three before the ITC seven very successful vertical and that yes was a double double effort and that was born.

Speaker Change: Born out in the upfront investment and some capital market players were criticizing us for that so the 180 billion investments. They said it was a tall order, but we now see I see that as a.

Speaker Change: Is justifying itself, we have still compelling vehicles plug in hybrid vehicles, the Gulf the preset with more than 100 kilometers of a driving range and at the same time, we'd have to babies.

Sebastian Rudolph: Yes, it is true that it weighs down on our financial KPIs, both CapEx and depreciation, sorry. Therefore, for 2025, the outlook that we're providing now is rather moderate, and only then do we expect a more dynamic growth and a further reduction of CapEx. 2025 and 2026 are important years because we see investments into ICE vehicles will be going down because those new vehicles will keep going, quite literally, until the 2030s. This is also what our financial cycle is. Our advantage of reducing investments going forward, because in the future it's only going to be 10% of our sales revenue that will be investments. That will also allow us to consolidate the cash flow. Ms.

Speaker Change: In our product range as well, but yes. It is true that it weighs down on our financial Kpis, both Capex and AR write off so.

Arno Antlitz: Yes, it is true that it weighs down on our financial KPIs, both CapEx and depreciation, sorry. Therefore, for 2025, the outlook that we're providing now is rather moderate, and only then do we expect a more dynamic growth and a further reduction of CapEx. 2025 and 2026 are important years because we see investments into ICE vehicles will be going down because those new vehicles will keep going, quite literally, until the 2030s. This is also what our financial cycle is. Our advantage of reducing investments going forward, because in the future it's only going to be 10% of our sales revenue that will be investments. That will also allow us to consolidate the cash flow.

Speaker Change: Depreciation sorry, so therefore for 2025 the outlook that we're providing now is rather moderate and only then do we expect a more dynamic growth and a further reduction of capex. So two.

Speaker Change: 2025, and 2026 are important is because we see investments into icy vehicles will be going down because those new vehicles will keep going quite literally until the 20th thirties and this is also what our financial cycle is.

Speaker Change: Vantage of reducing investments going forward because in the future, it's only going to be 10% of our sales revenue that will be our it investments and that will also allowed us allowed us to consolidate the cash flow.

Arno Antlitz: Ms. Werminghausen, you asked a question about the ramp-up of e-mobility in Germany for that matter, and it hinges, I must say, on a number of factors. Attractive products, obviously, that is true, and the pricing has to be right, and that is our job, clearly. The general framework conditions like charging infrastructure. We have the IONITY network in Germany, which features more than 800,000 charging outlets. There I would hope that the new incoming German government to not let up on growing the charging infrastructure. When it comes to our motorway network, and I drive a lot of electric vehicles, the motorway network is in good shape, but we need to do more across the country on secondary roads.

Sebastian Rudolph: Werminghausen, you asked a question about the ramp-up of e-mobility in Germany for that matter, and it hinges, I must say, on a number of factors. Attractive products, obviously, that is true, and the pricing has to be right, and that is our job, clearly. The general framework conditions like charging infrastructure. We have the IONITY network in Germany, which features more than 800,000 charging outlets. There I would hope that the new incoming German government to not let up on growing the charging infrastructure. When it comes to our motorway network, and I drive a lot of electric vehicles, the motorway network is in good shape, but we need to do more across the country on secondary roads.

Speaker Change: He Hasnt you asked the question about the ramp up of E mobility, and Germany for that matter and it hinges on let's say on a number of factors attractive products. Obviously that are that is true and the pricing has to be right and that is our job clearly, but then the general framework conditions like challenging infrastructure, we have the LTE network in Germany.

Speaker Change: Which features more than 800000 charging outlets.

Speaker Change: I would hope that the new incoming German government to not let up on growing the charging infrastructure. When it comes to our motor weight up where I can not drive a lot of electric.

Speaker Change: In electric vehicles. The motorway network is in good shape, where we need to do more.

Speaker Change: Across the country and secondary roads and also the pricing level, obviously much higher here in Germany than in other European countries in terms of electricity prices and Ive looked if you look at China kilowatt two prices are two to three cents right now, Germany. Therefore, so clearly.

Sebastian Rudolph: Also the pricing level, obviously much higher in Germany than in other European countries, in terms of electricity prices. If you look at China, their kilowatt prices are 2 to 3 cents. Right? Now, Germany, therefore, is clearly in different dimensions by double-digit factors, I should say, higher than in China when it comes to electricity prices. We need more support there. We also need incentives, subsidies for electric vehicles, and works really well in other European countries, like tax models. My proposal was to perhaps make this very straightforward, very easy.

Arno Antlitz: Also the pricing level, obviously much higher in Germany than in other European countries, in terms of electricity prices. If you look at China, their kilowatt prices are 2 to 3 cents. Right? Now, Germany, therefore, is clearly in different dimensions by double-digit factors, I should say, higher than in China when it comes to electricity prices. We need more support there. We also need incentives, subsidies for electric vehicles, and works really well in other European countries, like tax models. My proposal was to perhaps make this very straightforward, very easy.

Speaker Change: Dimensions.

Speaker Change: Double digit tractors, I should say higher than in China. When it comes to electricity prices, we need more support and also we need at our incentive subsidies for electric vehicles and works really well in other European countries like tax models.

Speaker Change: My proposal was to perhaps make this very straightforward very easy with your annual tax return at the end of year event at the end of the year may be you put an electric car on your on your documents like you like a use for any and he worked on the job, but it also deductible tax deductible in Germany.

Sebastian Rudolph: With your annual tax return or the end-of-year event at the end of the year, maybe you put an electric car on your documents like you use for any work done at your home that is also deductible, tax-deductible in Germany. That is a good incentive model. Or you could offer things like social leasing, where we are offering products as well. France, for instance, is doing that. What I'm saying is there is a plethora of different instruments, and we need to talk to the government about that, and we will submit our ideas, no doubt about it. Also the industrial conditions have to be right.

Arno Antlitz: With your annual tax return or the end-of-year event at the end of the year, maybe you put an electric car on your documents like you use for any work done at your home that is also deductible, tax-deductible in Germany. That is a good incentive model. Or you could offer things like social leasing, where we are offering products as well. France, for instance, is doing that. What I'm saying is there is a plethora of different instruments, and we need to talk to the government about that, and we will submit our ideas, no doubt about it. Also the industrial conditions have to be right.

Speaker Change: It's a good incentive model or you could offer things like social leasing leasing.

Speaker Change: Offering products as well, France for instance is doing that so what I'm, saying is there is a plethora of different instruments are we need to talk to the government about that and we will submit our idea is there's no doubt about it but also the industrial conditions have to be right.

Sebastian Rudolph: The transformation of existing factories, not only car factories, but also component factories, should be supported to provide some good incentive for the auto industry to change over to BEVs. Same is true also of battery cell production in Germany. What I'm saying is there are different conditions, general conditions, where the German government can help us, both when it comes to the ramp-up of BEVs, but also generally for the industry at large. Now, Oliver, you just talked about conditions and expectations. There's a question from David Secker from my colleague from Deutschlandfunk, which is very much in line with what you just said. Perhaps if you want to ask this question again, please drop us a line on the chat window.

Arno Antlitz: The transformation of existing factories, not only car factories, but also component factories, should be supported to provide some good incentive for the auto industry to change over to BEVs. Same is true also of battery cell production in Germany. What I'm saying is there are different conditions, general conditions, where the German government can help us, both when it comes to the ramp-up of BEVs, but also generally for the industry at large.

Speaker Change: Formation of existing factories, not only car factories, but also component factories should be supported to provide some good incentive for the auto industry to changeover true PV.

Speaker Change: P vs side, Mr. Also a battery cell production in Germany, So what I'm, saying is that different conditions general conditions weather German government can help us both when it comes to the ramp up of <unk> B V. But also generally for the industry at large.

Sebastian Rudolph: Now, Oliver, you just talked about conditions and expectations. There's a question from David Secker from my colleague from Deutschlandfunk, which is very much in line with what you just said. Perhaps if you want to ask this question again, please drop us a line on the chat window. I think from what we've just heard from Oliver has already answered your question. Okay, let's continue with Stuttgarter Zeitung, Stuttgarter Nachrichten, Business Insider, and then we do a big jump to Börsen-Zeitung. We continue with Klaus Köster. Can you put a hand up please? And there's the mic for you.

Speaker Change: Oliver you just talked about conditions and expectations.

Speaker Change: A question from David trick or from.

Speaker Change: To my colleague from Deutschland, Frank which was very much in line with what you just said so perhaps if you want to ask this question again, please drop US a line on the chat window, but I think from what we just heard from Oliver.

Klaus Köster: I think from what we've just heard from Oliver has already answered your question. Okay, let's continue with Stuttgarter Zeitung, Stuttgarter Nachrichten, Business Insider, and then we do a big jump to Börsen-Zeitung. We continue with Klaus Köster. Can you put a hand up please? And there's the mic for you. Thank you, Shane. Thank you very much. Mr. Blume, two questions. On German as a business or manufacturing location and competitiveness, because you said you're boosting competitiveness, and with your efficiency program, you're only at the beginning of that whole process and not at the end. What do you think would be the biggest challenge to get this all done? What is the effort that you are seeing now in order to reduce your workforce even beyond the demographic curve?

Speaker Change: Has already answer to your question, Okay, Let's continue with his two carats hard things to cut or not.

Speaker Change: <unk> business Insider and then we do a big jump to present typing. So we continue with close Kosta can you put your hand up please.

Speaker Change: And then Mike for you.

Klaus Köster: Thank you, Shane. Thank you very much. Mr. Blume, two questions. On German as a business or manufacturing location and competitiveness, because you said you're boosting competitiveness, and with your efficiency program, you're only at the beginning of that whole process and not at the end. What do you think would be the biggest challenge to get this all done? What is the effort that you are seeing now in order to reduce your workforce even beyond the demographic curve?

Speaker Change: Thank you Sarah and thank you very much.

Speaker Change: As to Bloom at two questions.

Speaker Change: On.

Speaker Change: Japan is a business manufacturing location in competitiveness, because you've said you're boosting competitive news.

With the efficiency program, we are only at the beginning of that whole process and not at the end what do you think would be the biggest challenge to.

Speaker Change: Get this all done so what is.

Speaker Change: Is the effort.

Speaker Change: That you are seeing are in order to reduce your workforce, even beyond the demographic curve better Volkswagen is a very competitive and appealing employer, how hard is it going to be how expensive is it going to be is it is it going to be for you to downsize the company and to.

Sebastian Rudolph: You know, Volkswagen is a very competitive and appealing employer. How hard is it going to be? How expensive is it going to be? Is it going to be for you to downsize the company and motivate people to quit? Now, secondly, as far as the exploratory talks are concerned, German and the German government, do you see that there's a trend to considering more the interest of industry than before? Is that going to be tailwind for you when it comes to the competitiveness of German industry? Mr. Köster, industry in Germany and the Volkswagen Group, let me cover that first. We are currently working to get a handle on all costs, beginning with R&D, material cost for our car production, including also fixed cost, including labor as well, of course, but also cost of sales are important.

Oliver Blume: You know, Volkswagen is a very competitive and appealing employer. How hard is it going to be? How expensive is it going to be? Is it going to be for you to downsize the company and motivate people to quit? Now, secondly, as far as the exploratory talks are concerned, German and the German government, do you see that there's a trend to considering more the interest of industry than before? Is that going to be tailwind for you when it comes to the competitiveness of German industry? Mr. Köster, industry in Germany and the Volkswagen Group, let me cover that first. We are currently working to get a handle on all costs, beginning with R&D, material cost for our car production, including also fixed cost, including labor as well, of course, but also cost of sales are important.

Speaker Change: Motivate people to quit.

Speaker Change: Now secondly.

Speaker Change: As far as the exploratory talks are concerned in Germany, and the German government do you see that as a trend to considering more the interest of industry than before and is that going to be tailwind for you. When it comes to the competitiveness of our German industry.

Speaker Change: Mr Kosta industry in Germany.

Speaker Change: On the Volkswagen Group, let me cover that first.

Speaker Change: We're currently working to get a handle on all cost beginning with R&D.

Speaker Change: <unk> cost for our car production, including also fixed cost, including labor as well of course, but also cost of sales are important we have a very structured program in place for more than two years now we've been running performance programs to optimize the operations of the individual brands now specifically at.

Sebastian Rudolph: We have a very structured program in place. For more than two years now, we've been running performance programs to optimize the operations of the individual brands. Now, specifically at Volkswagen, we have implemented one part of this initiative to improve our economic situation. We see that within our own company now here, if we look at our European operations outside of Germany, that is, and compare them with Germany, we are performing much worse in this country here. We are very confident, having said that we have achieved a good agreement at the end of last year. Our staffing structures will be adjusted to the production needs we have. At the same time, we are going to bring about structural changes in our factories, adjust capacities, and produce in a market-compatible way.

Oliver Blume: We have a very structured program in place. For more than two years now, we've been running performance programs to optimize the operations of the individual brands. Now, specifically at Volkswagen, we have implemented one part of this initiative to improve our economic situation. We see that within our own company now here, if we look at our European operations outside of Germany, that is, and compare them with Germany, we are performing much worse in this country here. We are very confident, having said that we have achieved a good agreement at the end of last year. Our staffing structures will be adjusted to the production needs we have. At the same time, we are going to bring about structural changes in our factories, adjust capacities, and produce in a market-compatible way.

Speaker Change: Volkswagen.

Speaker Change: We have implemented one part of this initiative to improve our economic situation and we see that within our own company and out here. If we look at our European operations outside of Germany that is and compare them with Germany. We are performing much worse in this country here.

Speaker Change: We're very confident having said that that we have achieved a good agreement at the end of last year stuffing structures will be adjusted to the production data we have and at the same time, we are going to bring about structural changes in our factories adjust capacities and produce in a market compatible way and there was really some.

Sebastian Rudolph: There was really some pent-up demand, and we're responding to that now. That is going to help us to tap cost synergies. For this year, we also see the impact of the labor cost agreements. As Arno and Lutz have said, we've signed them at the end of last year. Now it's to move ahead with those downsizing measures. In the next five years, we're talking about more than 35,000 jobs to be cut, but in a socially compatible way. Yes, we are riding the demographic curve, which helps us in that. Also we have a number of financial incentives there, like partial retirement, and also severance packages that we have in place.

Oliver Blume: There was really some pent-up demand, and we're responding to that now. That is going to help us to tap cost synergies. For this year, we also see the impact of the labor cost agreements. As Arno and Lutz have said, we've signed them at the end of last year. Now it's to move ahead with those downsizing measures. In the next five years, we're talking about more than 35,000 jobs to be cut, but in a socially compatible way. Yes, we are riding the demographic curve, which helps us in that. Also we have a number of financial incentives there, like partial retirement, and also severance packages that we have in place.

Speaker Change: Pent up demand and we're responding to that now and that is going to help us to top of the cost synergies for this year. We also see the impact of the labor costs to agreement says, let's I said, we've assigned them at the end of last year.

Speaker Change: And now it's a two to move ahead with those downsizing measures in the next five years, we're talking about more than 35000 jobs to be cut but in a socially compatible way. So yes, we are writing the democratic demographic curve, which helps us in that but also we have a number of financial incentives like.

Speaker Change: Partial retirement and also a separate severance packages that we have in place. This gives us a very clear plan.

Sebastian Rudolph: This gives us a very clear plan per year, per month, and per department or unit, and we're going to track that. This is the initial year of two years where this is going to be really incisive. The full structural measures will become effective in 2027 and beyond, because we are currently reducing the plant allocation schemes. We've shifted products to mother production sites. What I'm saying is, yes, as Arno has said, it's a lot of work. The agreement is just the first step, and we're now implementing it. In fact, it's true for other brands as well. In Germany, Porsche and Audi also have similar programs in place, which will give us a much better, much preferred, break-even situation, as it were. The risk situation is much higher than we had in the past decades, I must say.

Oliver Blume: This gives us a very clear plan per year, per month, and per department or unit, and we're going to track that. This is the initial year of two years where this is going to be really incisive. The full structural measures will become effective in 2027 and beyond, because we are currently reducing the plant allocation schemes. We've shifted products to mother production sites. What I'm saying is, yes, as Arno has said, it's a lot of work. The agreement is just the first step, and we're now implementing it. In fact, it's true for other brands as well. In Germany, Porsche and Audi also have similar programs in place, which will give us a much better, much preferred, break-even situation, as it were. The risk situation is much higher than we had in the past decades, I must say.

Speaker Change: Per month and per departmental unit that we're going to track that but this is the initial year of her two years, where this is going to be really incisive and the full structural measures will become effective in 2027 and beyond because we're currently reducing plant.

Speaker Change: K shouldn't schemes, we've shifted products to meet the production side. So what I'm, saying is yes, there's I know I said, it's a lot of work. The agreement is just the first step in when are implementing at a pet in fact is true for other brands as well in Germany, Porsche and Audi who also have similar programs in place, which will give us a much better and much prefer a breakeven situation.

Speaker Change: Is it worth the risk situation is much higher than we had in the past decades, I must say and therefore, we have to.

Sebastian Rudolph: Therefore, we have to get it right when it comes to our cost positions, be more robust. When it comes to policy making in favor of industry's concerns, yeah, I think this is exactly the right approach going forward. In Germany and Europe, for many decades, we have been living well off our development work, of our general prosperity, of this company. This is what we have been able to found or to base our prosperity on, our freedom and democracy that we've enjoyed. Our industry provides a lot of jobs, actually the largest share of jobs and industries. We have to be cognizant of that.

Oliver Blume: Therefore, we have to get it right when it comes to our cost positions, be more robust. When it comes to policy making in favor of industry's concerns, yeah, I think this is exactly the right approach going forward. In Germany and Europe, for many decades, we have been living well off our development work, of our general prosperity, of this company. This is what we have been able to found or to base our prosperity on, our freedom and democracy that we've enjoyed. Our industry provides a lot of jobs, actually the largest share of jobs and industries. We have to be cognizant of that.

Speaker Change: Got it right when it comes to our cost positions be more robust.

Speaker Change: When it comes to.

Speaker Change: Policymaking Eh.

Speaker Change: In favor of industry's concerns.

Speaker Change: Yeah I think this is exactly the right approach going forward in Germany and Europe.

Speaker Change: For many decades, we have been.

Speaker Change: Living well of.

Speaker Change: Development work, if I general prosperity Oh. This company. This is a what we have been able to found or two to base our prosperity on freedom and democracy that we've enjoyed and our industry provides a lot of jobs actually the largest share of shops in the jobs and industries. So we have to be.

Sebastian Rudolph: Therefore, I welcome very much what the German government has been saying now, and the incoming government, and also what the European Commission has said when it comes to R&D, when it comes to getting the conditions right for industry at large. Oliver, might I add one further thing, because you said something about the wording that I used with the necessary reduction of personnel to improve our cost structure. There's always two sides to it, and you have to distinguish between the two. The one thing is, when will the employees leave the company? When do they go to their well-deserved retirement? How do people leave the company? The second thing is, and that's really the challenge, that's why I'm saying work is only starting now.

Oliver Blume: Therefore, I welcome very much what the German government has been saying now, and the incoming government, and also what the European Commission has said when it comes to R&D, when it comes to getting the conditions right for industry at large.

Speaker Change: In the center of that and therefore, welcome very much what the German government has been saying that the incoming government and also with the European Commission has said when it comes to R&D when it comes to getting the conditions right for industry at large.

Sebastian Rudolph: Oliver, might I add one further thing, because you said something about the wording that I used with the necessary reduction of personnel to improve our cost structure. There's always two sides to it, and you have to distinguish between the two. The one thing is, when will the employees leave the company? When do they go to their well-deserved retirement? How do people leave the company? The second thing is, and that's really the challenge, that's why I'm saying work is only starting now.

Speaker Change: All of them, what I add one further thing because you said something about the wording that I used with the necessary reduction of personnel to improve our cost structure. There's always two sides state and you have to distinguish between the two the one thing is when will the employees leave the company. When you go do they go to their wages after retirement.

Speaker Change: How do people leave the company, but the second thing is and that's really the challenge, but that's why I'm, saying work is only starting now we have to set up our business in such a way that with these 30030 5000 people less we can scale our business to our business our productivity in the plants, that's something which we need to work through interactions we need to build more cars.

Sebastian Rudolph: We have to set up our business in such a way that with these 30,000, 35,000 people less, we can still our business, do our business. Productivity in the plants, that's something which we need to work through in workshops. We need to build more cars with less people. In indirect, as my financial area need to work with 25 percent people less. Tariffs, taxes, all these issues need to be covered. That's the issue that we need to work on. Both things that were reduction of, staff levels with socially compatible means. On the other side, we have to make, the prerequisites in order to have adequate productivity. We'll stay in the lower row. Mr. Krogh is next.

Speaker Change: With less people and indirect as my financial area need to work with 25 people less percent people less tariffs taxes. All these issues need to be covered that's the issue that we need to work on some things.

Speaker Change: That was a reduction of staff levels with socially compatible means on the other side, we have to make the prerequisite in order to have adequate productivity.

Speaker Change: We stay in the J.

Cook: Mr. Cook is next.

Henning Krogh: Henning Krogh from Hamburg. Good morning. Hello. I would like to address two brands that we haven't talked about yet. Mr. Blumer, for the economic well-being of the Volkswagen Group, North America with Canada, US, and Mexico is of utmost significance. Your Spanish sub-brand, Cupra, wants to enter the US market by the end of this decade. Now, with Donald Trump as a new president with sometimes strange behavior, this brings me to three individual questions. First, for Cupra, will you stay with the market entry at the end of this decade in North America? Secondly, can you say where the cars will be vertically integrated and built? Will it be Puebla, Chattanooga? Will it maybe be a completely different site? Background of that question is, your colleague Mr.

Monty Cook: And he called Osama with Monty Cook from Hamburg Hello.

Monty Cook: I would like to address two bonds that we haven't talked about yet Mr. Illumina for the economic well being off the lifestyle Group North America, with Canada U S and Mexico is of utmost significance and your Spanish sovereign Cooper once to enter the U S market by the.

Monty Cook: End of this decade now with Donald Trump, there's a new president with sometimes strange behavior. This brings me to three individual questions first for Cooper will stay with the market entry at the end of this decade in North America, and secondly can you.

Monty Cook: I'll say, where they cause will be vertically integrate and built will it be Puebla Chattanooga will it maybe be completely different site background of that question is your colleague Mr. Analysts quite rightfully said, you can't localize somewhere else overnight and they will have to be localized content for the U S. Mr until its use.

Henning Krogh: Background of that question is, your colleague Mr. Antlitz quite rightfully said, you can't localize somewhere else overnight, and there will have to be localized content for the US. Mr. Antlitz, you said the real work is only starting now. In the past, as a consultant with McKinsey, you have been active with such a big restructuring that you have now. One could imagine that you need more consultants. Will you have more consultants working for you than in previous years or less? A fast question on Lamborghini, Mr. Blume. At the upper end of your range, Lamborghini, at the end of the decade, wants to have a battery electric vehicle. I take it made in Italy is very important for Lamborghini, so the assembly will take place in Sant'Agata. But where will you do the body? You use the body shop.

Arno Antlitz: Antlitz quite rightfully said, you can't localize somewhere else overnight, and there will have to be localized content for the US. Mr. Antlitz, you said the real work is only starting now. In the past, as a consultant with McKinsey, you have been active with such a big restructuring that you have now. One could imagine that you need more consultants. Will you have more consultants working for you than in previous years or less? A fast question on Lamborghini, Mr. Blume. At the upper end of your range, Lamborghini, at the end of the decade, wants to have a battery electric vehicle. I take it made in Italy is very important for Lamborghini, so the assembly will take place in Sant'Agata. But where will you do the body? You use the body shop.

Monty Cook: Ted.

Speaker Change: The real work is only starting now and in the past as a consultant with Mckinsey.

Monty Cook: And you have been active with such a big restructuring.

Speaker Change:

Speaker Change: That you have now one could imagine that you'll need more consultants.

Speaker Change: And you will you have more consultants working for you than previous years or less and the first question on Lamborghini Mr. Bloomer at the upper end of your range Lamborghini at the end of the.

Speaker Change: Decade wants to have a battery electric vehicle I take it made in Italy is very important for lamborghini's and the assembly will take in place and son got her but where will you do with a body you use the body shop will it be Bratislava will it maybe be a site of audi's in Germany can you tell us a bit more about it.

Arno Antlitz: Will it be Bratislava? Will it maybe be a site of Audi's in Germany? Can you tell us a bit more about it? With that car, will you have high-rigid steels for the body, or will you use carbon materials, carbon-based materials? Right. Let me start with Cupra in the US. We see the American market as being very attractive for the Cupra brand. In the recent years, we have seen how great the brand image of Cupra has developed, the kind of great products we have there. We have a specific approach to build tailor-made US products by Cupra. Of course, we have to take a look at the prerequisites as they change in the United States for each and every strategy. It's important to check it against reality, what we're doing just now as well.

Henning Krogh: Will it be Bratislava? Will it maybe be a site of Audi's in Germany? Can you tell us a bit more about it? With that car, will you have high-rigid steels for the body, or will you use carbon materials, carbon-based materials?

Speaker Change: And with that.

Speaker Change: Uh huh.

Speaker Change: Will you have right M highbridge at steels for the body or will you use a carbon materials carbon based materials.

Oliver Blume: Right. Let me start with Cupra in the US. We see the American market as being very attractive for the Cupra brand. In the recent years, we have seen how great the brand image of Cupra has developed, the kind of great products we have there. We have a specific approach to build tailor-made US products by Cupra. Of course, we have to take a look at the prerequisites as they change in the United States for each and every strategy. It's important to check it against reality, what we're doing just now as well.

Speaker Change: Alright, let me start with Cooper in the U S and we see the American market as being very attractive for the Cooper brand in the recent years, we have seen how great. The market. The brand image of Cooper has developed a kind of great products, we have that and we have a specific approach.

Speaker Change: To build a tailor made U S products by Cooper of course, we have to take a look at the prerequisite as they change in the United States, where each and every strategy. It's important to check it against reality, what we're doing just now as well just have to take a look at how the relationship between I C E and Evs.

Arno Antlitz: We also have to take a look at how the relationship between ICE and EVs is developing in the US. Yes, we saw it by that we want to go into the US, but of course we will take a very close look at how decisions maybe need to be changed. That also means should we go to the US with Cupra, we need to see which sites we use for which products. First of all, we're planning for export of products, and then step by step you can think about this. As I said, our intention is there. We think it's attractive, but of course we can't avert our eyes from what's happening in the US. Then I'd like to answer the Lamborghini question, and you could answer the rest on the consultancy work.

Oliver Blume: We also have to take a look at how the relationship between ICE and EVs is developing in the US. Yes, we saw it by that we want to go into the US, but of course we will take a very close look at how decisions maybe need to be changed. That also means should we go to the US with Cupra, we need to see which sites we use for which products. First of all, we're planning for export of products, and then step by step you can think about this. As I said, our intention is there. We think it's attractive, but of course we can't avert our eyes from what's happening in the US. Then I'd like to answer the Lamborghini question, and you could answer the rest on the consultancy work.

Speaker Change: Is developing into guests. So yes, we aside by that we want to go into the U S. But of course, we will take a very close look at how decisions maybe need to be changed and so and that also means should we go to the U S that could probably would need to see which sites, we used for which product.

Speaker Change: First of all we are planning for export of products and then step by step you can think about this as I said our intention is that we think its attractive but of course, we can't.

Speaker Change: Our eyes from what's happening in the U S.

Speaker Change: And then I'd like to answer the Lamborghini question and you could answer the rest on the consultancy work.

Arno Antlitz: Lamborghini, yes, we are planning to have an electric vehicle. That's a big opportunity the Volkswagen Group has, that with a joint electric kit that we have, that we structurize in various dimensions with various core development responsibilities with Volkswagen, Audi, and Porsche, that we have a possibility to use synergies here. Lamborghini, we plan to go on the platform where development is dominated by Porsche at the moment. We're doing it together with Porsche, with Lamborghini, Bentley, and Audi. It's a very sporty one. We'll come up to 2,000 horsepowers. It's a very sporty setup with a voltage of 980 volts, which can be a very specific setup for Lamborghini. Assembly will of course be done in Sant'Agata. As regards the body concept, I'm not giving any statement yet.

Oliver Blume: Lamborghini, yes, we are planning to have an electric vehicle. That's a big opportunity the Volkswagen Group has, that with a joint electric kit that we have, that we structurize in various dimensions with various core development responsibilities with Volkswagen, Audi, and Porsche, that we have a possibility to use synergies here. Lamborghini, we plan to go on the platform where development is dominated by Porsche at the moment. We're doing it together with Porsche, with Lamborghini, Bentley, and Audi. It's a very sporty one. We'll come up to 2,000 horsepowers. It's a very sporty setup with a voltage of 980 volts, which can be a very specific setup for Lamborghini. Assembly will of course be done in Sant'Agata. As regards the body concept, I'm not giving any statement yet.

Speaker Change: And Lamborghini S. We are planning to have an electric vehicle, that's a big opportunity. The Volkswagen group has that with a joined electric kit.

Speaker Change: That we have that we struck dries in various dimensions with various core development responsibilities with Volkswagen Audi and Porsche that they have a possibility to use synergies here number of Guinea. We plan to go on the platform that is done where development is dominated by push at the moment, they're doing it together with.

Speaker Change: Push with Lamborghini.

Remember Guinea, Bentley and allergy its various 41, we'd come up to 2000 horsepower is it's a very sporty and whatsapp.

Speaker Change: Where the voltage of 908 T bolt.

Speaker Change: Which will be various speed, which can be a very specific set of four Lamborghini Assembly will of course be done in Santa I've got to as regards the body concept, we're not giving any statement yet they are in the concept stage concept development has progressed pretty fun at a later point of time, we will announce how we will do it but I can promise.

Arno Antlitz: We're in the concept stage. Concept development has progressed pretty fine. At a later point of time, we will announce how we will do it. I can promise it's going to be a typical Lamborghini, very emotional, and design. It gives a great impression. Just briefly, Mr. Krogh, of course, we said we need to save money. We reduce overheads, and consultancy work belongs to that. On the other side, in the future, we will have some questions where we simply don't have the expert know-how in our company, although, of course, we have great stuff and great people here. For example, with Rivian, we actually used consultants. With other complex questions in the future, that will also be the case. There will always be some cases, some questions coming up where rightfully we will use consultants.

Oliver Blume: We're in the concept stage. Concept development has progressed pretty fine. At a later point of time, we will announce how we will do it. I can promise it's going to be a typical Lamborghini, very emotional, and design. It gives a great impression. Just briefly, Mr. Krogh, of course, we said we need to save money. We reduce overheads, and consultancy work belongs to that. On the other side, in the future, we will have some questions where we simply don't have the expert know-how in our company, although, of course, we have great stuff and great people here. For example, with Rivian, we actually used consultants. With other complex questions in the future, that will also be the case. There will always be some cases, some questions coming up where rightfully we will use consultants.

Speaker Change: It's getting to be a typical lamborghini very emotional and design show it gives a great impression.

Speaker Change: Just briefly Mr. Cook off course, we said we need to save money, we reduce overheads and consultancy what belongs to that on the other side in the future. We will have some questions, where we simply don't have the expert knowhow and our company. Although of course, we have great stuff and great people.

Speaker Change: Here at <unk>.

Speaker Change: For example, with Raytheon, we actually used consultants and without the complex questions in the future that would also be the case that will always be some cases some questions coming up we're rightfully we will use our consultants, but of course, we'll see it against the backdrop of overheads and costs Alright, Let's go to the next so it's about.

Sebastian Schmidt: Of course we'll see it against the backdrop of overheads costs. Right. Let's go to the next slide. Sebastian Schmidt, share of software investment in this and which share is going to the partnership of Rivian so that you reckon with less capital expenditure in the next two years. As a further additional question, CARIAD has a more negative financial result last year than in 2023. Will you think there will be further growing losses in 2025 in that unit? What are the factors that it will be a bit less negative in the future? Thank you. Let me start with China. Our guidance is EUR half a billion to EUR 1 billion operating results, so that's a bit weaker still. It has two reasons.

Oliver Blume: Of course we'll see it against the backdrop of overheads costs.

Sebastian Rudolph: Right. Let's go to the next slide. Sebastian Schmidt

Speaker Change: Karen Schmitt bathroom side, Tom over to you.

Speaker Change: Yes. Thank you so much moving away from the U S to China back again in Q4, we had an operating result.

Speaker Change: Operating contribution that is in range for the entire year 2025, seven started maybe you can briefly tell us.

Once he contra EM country effect in China that may get sold more such a challenging year more challenging even in 2024 and midterm capital expenditure, which is clearly lower and I would like to know which shares our software investment in this and which sure.

Sebastian Schmidt: , Share of software investment in this and which share is going to the partnership of Rivian so that you reckon with less capital expenditure in the next two years. As a further additional question, CARIAD has a more negative financial result last year than in 2023. Will you think there will be further growing losses in 2025 in that unit? What are the factors that it will be a bit less negative in the future?

Speaker Change: Is it getting to the partnership of Raytheon says that you reckon with less capital expenditure and next in the next two years and the further an additional question Kerry at.

Speaker Change: He has a negative financial more negative financial result last year, then in 'twenty two 'twenty three.

Speaker Change: Do you think there will be further grading losses in 2025 and that unit well what are the factors that it will be a bit less negative in the future. Thank you.

Oliver Blume: Thank you. Let me start with China. Our guidance is EUR half a billion to EUR 1 billion operating results, so that's a bit weaker still. It has two reasons. Pricing competition in China is still very ambitious, and at the same time, we want to strike a good compromise between volume on the one side and price on the other, which is why we will again reduce market share in 2025 in order to be on the attack in 2026. 2025 will be mainly burdened by investment. We are preparing to be on the attack in 2026. Take our China Main Platform that Oliver Blume addressed. We are working in a partnership with Horizon Robotics, bringing driving assistance, driving functions, infotainment.

Speaker Change: We start with China.

Speaker Change: Guidance is half a billion to launch up to 1 billion operating results. So that's a bit weak is still it has two phases.

Arno Antlitz: Pricing competition in China is still very ambitious, and at the same time, we want to strike a good compromise between volume on the one side and price on the other, which is why we will again reduce market share in 2025 in order to be on the attack in 2026. 2025 will be mainly burdened by investment. We are preparing to be on the attack in 2026. Take our China Main Platform that Oliver Blume addressed. We are working in a partnership with Horizon Robotics, bringing driving assistance, driving functions, infotainment. We'll have LFP batteries in the car, and thus prepare in 2026 to have a far more competitive platform. Now, this costs money. It's capital expenditure. Then we have product partnerships, for example, between Volkswagen and XPENG.

Speaker Change: I think competition in China is still a very ambitious and at the same time, we want to strike a good compromise between volume on one side and price on the other which is why we will again and reduce market share in 2025 in order to be able to attack in 2026 2025.

Speaker Change: Will it be mainly bed and by investment we are preparing to be on the attack in 2026 and take a minor change.

Speaker Change: China main platform that Oliver Blume addressed we're working in partnership with Horizon robotics and bring in driving assistant assistance driving functions infotainment will have LSP batteries in the car that's prepared in 2026 to have a far more competitive platform now this costs money is.

Oliver Blume: We'll have LFP batteries in the car, and thus prepare in 2026 to have a far more competitive platform. Now, this costs money. It's capital expenditure. Then we have product partnerships, for example, between Volkswagen and XPENG.

Speaker Change: Capital expenditure than we have product partnerships for example between Volkswagen Xiaoping Volkswagen will launch two great cars, and Audi and Psych will say in DS and this investment will actually be an additional bed for 2025, and then in 'twenty six I don't want to be too precise but from the second or third quarter 'twenty six.

Arno Antlitz: Volkswagen will launch two great cars, and Audi and Porsche also. These and this investment will actually be an additional burden for 2025. Then in 2026, I don't want to be too precise, but from Q2 or Q3 2026 onwards, we will have everything in place in order to move forward full throttle and to regain market share in the EV sector. Those are the plans, but that means that 2025 will actually be burdened again. Maybe as regards the investment issue, CARIAD has been a bit worse in 2024 because a very important event happened, ramp-up of the 1.2 software platform for Macan Electric and Q6 e-tron. That was a real tour de force for CARIAD. CARIAD has the task to maintain 1.1 and to ramp up the 1.2.

Oliver Blume: Volkswagen will launch two great cars, and Audi and Porsche also. These and this investment will actually be an additional burden for 2025. Then in 2026, I don't want to be too precise, but from Q2 or Q3 2026 onwards, we will have everything in place in order to move forward full throttle and to regain market share in the EV sector. Those are the plans, but that means that 2025 will actually be burdened again. Maybe as regards the investment issue, CARIAD has been a bit worse in 2024 because a very important event happened, ramp-up of the 1.2 software platform for Macan Electric and Q6 e-tron. That was a real tour de force for CARIAD. CARIAD has the task to maintain 1.1 and to ramp up the 1.2.

Speaker Change: One, which we will have everything in place in order to move forward full throttle and to regain market share in the EV sector. Those other plants, but that means that 2025 will actually be bad.

Speaker Change: Again.

And maybe as regards the investment issue carrier has been a bit less in 'twenty 'twenty four because a very important event happened ramp up off the 1.2 software platform for even Mccann in Q six each one that was a real tour de force full carry it.

Speaker Change: Carriage has the task to maintain 1.1 and to ramp up the one point or two.

Arno Antlitz: With the cooperation with Rivian for the new platform for 2.0 and in China with XPENG, you can expect that CARIAD over the years will be clearly more positive. You know the business model. CARIAD's business model means that they invest or finance the investment, and they're paid by the brands through licenses car by car. On the one hand, the number of cars will be rising that will run on CARIAD 1.1 and 1.2 platforms, so CARIAD's income will be growing. On the other side, software expenditure, because of the joint venture with Rivian, for example, will go down. Breakeven will come sometime in 2026 and 2027. That's expected.

Speaker Change: I mean, that's.

Oliver Blume: With the cooperation with Rivian for the new platform for 2.0 and in China with XPENG, you can expect that CARIAD over the years will be clearly more positive. You know the business model. CARIAD's business model means that they invest or finance the investment, and they're paid by the brands through licenses car by car. On the one hand, the number of cars will be rising that will run on CARIAD 1.1 and 1.2 platforms, so CARIAD's income will be growing. On the other side, software expenditure, because of the joint venture with Rivian, for example, will go down. Breakeven will come sometime in 2026 and 2027. That's expected.

Speaker Change: With the cooperation with Raytheon for the new platform for 2.0 and in China with Shell Peng Ken.

Can expect that carriage over the years will be clearly more positive you know the business model carriage business model means that they invest or finance the aim investment and that paid by the brands through licensees call Mike.

Speaker Change: On the one hand, the number of cars will be rising that will rest on carrier at 1.1, and 1.2 platforms carriers income will be growing and on the other side software expenditure.

Speaker Change: Because of the joint venture with wavelength for example will go down break even will come sometime in 'twenty six 'twenty seven that's to expect one.

Arno Antlitz: With mid-term investment, roughly speaking, we can say that about one-third will go to you know, combustion engine technology, maybe a bit less, maybe 30%, and the rest will mainly be going towards future investment for e-mobility, for digitalization, and software. That's about a rough estimate. Of course, a lot goes into battery as well. Of the EUR 165 billion, about EUR 10 billion goes to capital expenditure for PowerCo and for our worldwide rollout. Also growth for, in the United States for Scout. Now, next round will be international guests, starting with Financial Times, then Les Echos, and then The Wall Street Journal. Patricia Nilsen is right there. Financial Times, please. You have the floor.

Oliver Blume: With mid-term investment, roughly speaking, we can say that about one-third will go to you know, combustion engine technology, maybe a bit less, maybe 30%, and the rest will mainly be going towards future investment for e-mobility, for digitalization, and software. That's about a rough estimate. Of course, a lot goes into battery as well. Of the EUR 165 billion, about EUR 10 billion goes to capital expenditure for PowerCo and for our worldwide rollout. Also growth for, in the United States for Scout.

Speaker Change: And with midterm investment.

Speaker Change: Goldman Sachs roughly speaking, we can say that about one third will go to come in a combustion engine technology, maybe a bit less maybe 30% and the rest will mainly be getting towards future investment for immobility for digitalization and software that's about.

Speaker Change: A rough estimate of course, a lot goes into battery as well of the 165 billion about 10 billion goes to capital expenditure for power co.

Speaker Change: And for all worldwide rollout also growth for in the United States for Scout.

Sebastian Rudolph: Now, next round will be international guests, starting with Financial Times, then Les Echos, and then The Wall Street Journal. Patricia Nilsen is right there. Financial Times, please. You have the floor.

Speaker Change: Next Frank will be international starting with financial times than lesser coat.

Speaker Change: And then the Wall Street Journal.

Speaker Change: Patricia Nielsen is right the financial times. Please you have the floor.

Patricia Nilsen: Thank you very much. I wanted to ask, you mentioned that operating profit was hit by restructuring costs. Can you give a bit more detail as to what you mean? Is this mainly voluntary redundancy packages and other types of labor costs? Secondly, I wanted to ask, Mr. Blume, you mentioned that you have clear targets or guidelines in terms of how much it can cost you to reach the goal of reducing 35 thousand jobs in Germany by 2030. How much can it cost? How much are you expecting it to cost? Thank you.

Patricia Nilsson: Thank you very much. I wanted to ask, you mentioned that operating profit was hit by restructuring costs. Can you give a bit more detail as to what you mean? Is this mainly voluntary redundancy packages and other types of labor costs? Secondly, I wanted to ask, Mr. Blume, you mentioned that you have clear targets or guidelines in terms of how much it can cost you to reach the goal of reducing 35 thousand jobs in Germany by 2030. How much can it cost? How much are you expecting it to cost? Thank you.

Speaker Change: Yeah.

Patricia Nielsen: Thank you very much I wanted to ask you mentioned that operating profit was hit by restructuring costs can you give a bit more detail as to what you mean is this mainly voluntary redundancy packages and other types of labor costs, and secondly, I wanted to ask and Mr. Blew me you mentioned that you have clear targets.

Patricia Nielsen: Guidelines in terms of how much it can cost you to reach the goal of reducing 35, and <unk> thousand jobs, and Germany by 2030, and how much can it cost how much are you expecting it to cost.

Patricia Nielsen: Are you.

Arno Antlitz: Yeah. I'll start with the first question. The one-off, let's call it restructuring, to make one example or some examples, it's almost a billion. I think it's EUR 880 million for early retirement program at Volkswagen AG, which is basically part of the overall agreement. This is one of. We booked that in 2024. Audi booked a significant amount of also magnitude above EUR 1 billion, for example, for the run out of the production of in the Brussels plant. We had EUR 100 million burden on MAN ES ramping down turbine business. Another restructuring was EUR 250 million burden at our FinCo for ramping down our bank in Russia.

Oliver Blume: Yeah. I'll start with the first question. The one-off, let's call it restructuring, to make one example or some examples, it's almost a billion. I think it's EUR 880 million for early retirement program at Volkswagen AG, which is basically part of the overall agreement. This is one of. We booked that in 2024. Audi booked a significant amount of also magnitude above EUR 1 billion, for example, for the run out of the production of in the Brussels plant. We had EUR 100 million burden on MAN ES ramping down turbine business. Another restructuring was EUR 250 million burden at our FinCo for ramping down our bank in Russia. These were some examples of the EUR 2.6 billion we adjusted for.

Speaker Change: Yeah, I'll start with the first question. So the the the one offs, let's call. It a affecting who make one example of a stomach soundbites. That's almost a billion I think 880 million for our early retirement program at Fox on energy, which is basically part of the overall agreement.

Patricia Nielsen: This is a one off we booked that in 2020 four.

Patricia Nielsen: And already booked a significant demand of what's the magnitude of above a billion.

Patricia Nielsen: For example for the run out of the production of in the process plant.

Patricia Nielsen: We had them.

Patricia Nielsen: Again, a burden on M I N S ramping down.

Patricia Nielsen: Turbine business.

Patricia Nielsen: Another restructuring was 250.

Patricia Nielsen: Burden.

Patricia Nielsen: At our at our physical four for ramping down our bank in Russia. So these are some examples of the of the 216 billion adjusted for.

Arno Antlitz: These were some examples of the EUR 2.6 billion we adjusted for.

Sebastian Rudolph: Yeah. In terms of targets, Arno mentioned the restructuring costs. I would like to talk more about the efficiency we are aiming to increase. In terms of labor costs, mid-term, we have a target to benefit from EUR 1.5 billion a year. This year we are expecting around EUR 1 billion, and at the end of our planning round in terms of all measures we are implementing, also the reduction of employees, we have the target to have a benefiting part of EUR 4.0 billion a year.

Oliver Blume: Yeah. In terms of targets, Arno mentioned the restructuring costs. I would like to talk more about the efficiency we are aiming to increase. In terms of labor costs, mid-term, we have a target to benefit from EUR 1.5 billion a year. This year we are expecting around EUR 1 billion, and at the end of our planning round in terms of all measures we are implementing, also the reduction of employees, we have the target to have a benefiting part of EUR 4.0 billion a year. This is part of an overall performance program we are running at Volkswagen, and this will lead at the end to EUR 15 billion a year. Yeah, so we have three important figures: EUR 1.5 labor cost, EUR 4 everything together with plant reduction, with personnel reduction, and EUR 15 billion for the whole program.

Patricia Nielsen: And in terms of targets.

Patricia Nielsen: Mentioned, the restructuring costs and I would like to talk more about the efficiency are we oh.

Patricia Nielsen: Our aiming to increase.

Patricia Nielsen: And in terms of labor costs midterm, we have a target.

Patricia Nielsen: <unk> Tau benefit from 1.5 billion euros, a year this year, we're expecting around a billion.

Patricia Nielsen: At the end of an hour planning round in terms of all measures. We are implementing also the reduction of of.

Patricia Nielsen: All the employees.

Patricia Nielsen: We have set targets to have a benefiting part of 4.0 billion euros a year and this is part of a overall performance program we are running.

Sebastian Rudolph: This is part of an overall performance program we are running at Volkswagen, and this will lead at the end to EUR 15 billion a year. Yeah, so we have three important figures: EUR 1.5 labor cost, EUR 4 everything together with plant reduction, with personnel reduction, and EUR 15 billion for the whole program.

It folks fun and this will lead at the answer to 15 billion Euro a year also we have fast three important figures 1.5 labor cost for everything together with plant reduction emphasis doesn't.

Patricia Nielsen: Wasn't a reduction and 15 billion for them for the whole program.

[Analyst]: Then

Sebastian Rudolph: Then I'll continue here. Les Echos.

Sebastian Rudolph: I'll continue here. Les Echos.

Patricia Nielsen: And all of their data.

[Analyst]: Thibaut Madelin.

Thibaut Madelin: Thibaut Madelin.

Patricia Nielsen: When you hear logical.

Sebastian Rudolph: Thibaut Madelin.

Patricia Nielsen: Not to bore Butler.

Thibaut Madelin: Yeah. Thank you. Thibaut Madelin, Les Echos.

Thibaut Madelin: Yeah. Thank you. Thibaut Madelin, Les Echos. Thank you very much. Thibaut Madelin from Les Echos. I have two questions. I understand that the carbon emission targets account for EUR 1.5 billion, or you would have paid EUR 1.5 billion. Now with the easing and the stretching to three years of European targets, what would your savings be? I understand your revenues are going to increase by 5%. What about unit sales? Are unit sales grow as well this year, or will they be lower?

Patricia Nielsen: Dunker Tivo Atlantis Ecu. She took 500, thank you very much T ball medlar from last cycle.

Sebastian Rudolph: Thank you very much. Thibaut Madelin from Les Echos. I have two questions. I understand that the carbon emission targets account for EUR 1.5 billion, or you would have paid EUR 1.5 billion. Now with the easing and the stretching to three years of European targets, what would your savings be? I understand your revenues are going to increase by 5%. What about unit sales? Are unit sales grow as well this year, or will they be lower?

Patricia Nielsen: I have two question I understand that the carbon emission targets account for 1.5 billion euros or you would have a paid.

Patricia Nielsen: Paid $1 5 billion, but now with the easing and the stretching to three years offer European.

Patricia Nielsen: Targets, what would be your savings P and I understand your.

Revenues are going to increase by 5% what about unit sales our unit sales grow as well to share or will they be lower.

[Analyst]: Yep.

Oliver Blume: Yep. Okay, let's start with the second one first. I need to explain that first. Unit sales are expected to be flat, by and large, we believe, so on the level of the prior year. We need to differentiate by the different regions of the world. Now, in Europe, we expect a slight increase, also a slight increase in the US, and in China we expect a reduction. Now, there's one thing that needs to be borne in mind, and you know that. The unit sales or volume sales of our joint ventures in China are not in our balance sheet. They're part of the at equity result, not at the volume sales result, but only the financial results.

Sebastian Rudolph: Okay, let's start with the second one first. I need to explain that first. Unit sales are expected to be flat, by and large, we believe, so on the level of the prior year. We need to differentiate by the different regions of the world. Now, in Europe, we expect a slight increase, also a slight increase in the US, and in China we expect a reduction. Now, there's one thing that needs to be borne in mind, and you know that. The unit sales or volume sales of our joint ventures in China are not in our balance sheet. They're part of the at equity result, not at the volume sales result, but only the financial results.

Patricia Nielsen:

Patricia Nielsen: I don't have an implied okay, let's start with the second one first I need to explain that first.

Patricia Nielsen: Unit sales are expected to be flat.

Patricia Nielsen: We believe so on the level of the prior year, but we need to differentiate by the different regions of the world.

Patricia Nielsen: In Europe, we expect a slight increase also a slight increase in the U S and in China, We expect a reduction.

Patricia Nielsen: There's one thing that needs to be borne in mind and you know that.

Patricia Nielsen: The units sales or volume sales of our joint ventures in China are not on our balance sheet. It's they're part of the equity result, not at the volume sales result, but any of the financial results now if we have constant deliveries forecast for the entire world. We would expect still an increase of revenue because.

Sebastian Rudolph: Now, if we have constant deliveries forecast for the entire world, we would expect still an increase of revenue because where the revenue is counted on our income statement is Europe and the US, where we expect a slight increase and a reduction in China. That reduction in China is only seen or mostly seen in the share of the operating result of EUR half a billion to 1 billion, i.e., in the financial result, as we talked about that. This is the reason why we are expecting a positive development. One more thing to say is that we're confident that we're seeing good momentum in Europe. Why? Because last year we had volume sales to the level of the prior year, but we had a robust, strong order bank.

Oliver Blume: Now, if we have constant deliveries forecast for the entire world, we would expect still an increase of revenue because where the revenue is counted on our income statement is Europe and the US, where we expect a slight increase and a reduction in China. That reduction in China is only seen or mostly seen in the share of the operating result of EUR half a billion to 1 billion, i.e., in the financial result, as we talked about that. This is the reason why we are expecting a positive development. One more thing to say is that we're confident that we're seeing good momentum in Europe. Why? Because last year we had volume sales to the level of the prior year, but we had a robust, strong order bank.

Patricia Nielsen: While the revenue is counted.

Patricia Nielsen: Our income statement as the Europe, and U S, where we expect a slight increase and a reduction in China that reduction in China is only seen or mostly seen in the share of the operating result of half a billion two 1 billion I E. The financial result, as we talked about that so this is the reason why we're expecting a positive development.

One more thing to say is that we're confident that the.

Patricia Nielsen: We are seeing good momentum in Europe, why because last year, we had volume sales to the level of the prior year, but.

We had a robust a strong order bank.

Sebastian Rudolph: The orders that we already had in the business, we used as a stabilizer and reduced them down to 850,000 in Europe. This is now back to the pre-COVID levels. What it means is in the first two months has allowed us to increase the order intake significantly. Our order intake now is more than 100,000 vehicles already. I'm seeing very positive signals in the first two months of the year. The second question was about carbon emissions. Well, yes, that was our target that we had forecast just around Christmas. We believe, we have belief that the theoretical burden for 2025, given our EV ramp-up schedule, would have been exactly that. Now we're seeing those two factors.

Oliver Blume: The orders that we already had in the business, we used as a stabilizer and reduced them down to 850,000 in Europe. This is now back to the pre-COVID levels. What it means is in the first two months has allowed us to increase the order intake significantly. Our order intake now is more than 100,000 vehicles already. I'm seeing very positive signals in the first two months of the year. The second question was about carbon emissions. Well, yes, that was our target that we had forecast just around Christmas. We believe, we have belief that the theoretical burden for 2025, given our EV ramp-up schedule, would have been exactly that. Now we're seeing those two factors.

Patricia Nielsen: So the orders that we already had in the business we used as a stable.

Patricia Nielsen: As a stabilizer and reduce them down to 850000 in Europe. So this is now back to the pre COVID-19 levels, but what it means is in the first two months.

Patricia Nielsen: It's allowed us to increase the order intake significantly older than tech now is more than 100000 vehicles already so.

Patricia Nielsen: I'm seeing very positive signals in the first two months of the year.

<unk>.

Patricia Nielsen: It's vital to the second question.

Patricia Nielsen: Sure.

Patricia Nielsen: Carbon emissions well.

Patricia Nielsen: Yes that was our target that we had to.

Patricia Nielsen: Our forecast, which is to run to Christmas. We believe we have to believe that the theoretical burden for 2025.

Patricia Nielsen: Given our EV ramp up schedule would have been exactly that but no. We're seeing those two factors so for one thing.

Sebastian Rudolph: For one thing, it's a more positive order intake. Now for the ID.7, we have an order intake on the level of the Passat, so we're confident when it comes to EVs, pushing this whole trend. A much better momentum, if you will, than we had expected. We need to get better, of course, no doubt about it, because we're at 18% in Q4 in Europe last year. Now we have to be more than 20% EV share, and we are getting there, we believe. That will allow us to reduce that burden. Then, as Oliver has just said, we have 3 more years now, or a total of 3 years to meet the emission targets.

Oliver Blume: For one thing, it's a more positive order intake. Now for the ID.7, we have an order intake on the level of the Passat, so we're confident when it comes to EVs, pushing this whole trend. A much better momentum, if you will, than we had expected. We need to get better, of course, no doubt about it, because we're at 18% in Q4 in Europe last year. Now we have to be more than 20% EV share, and we are getting there, we believe. That will allow us to reduce that burden. Then, as Oliver has just said, we have 3 more years now, or a total of 3 years to meet the emission targets.

Patricia Nielsen: More positive order intake for the <unk> seven we have an order intake on the level of the Prasad said, we're confident when it comes to Evs are pushing this whole trend so it much better.

Momentum if you will than we had expected.

Patricia Nielsen: But we need to get better of course.

Patricia Nielsen: No doubt about it because we had 18% in the fourth quarter in Europe last year, and now we have to be more than 20% of an EV share we're getting there.

Patricia Nielsen: I'll leave and that will allow us to reduce that burden and then it's all about as Joe said, we have three more years now or a total of three years to meet the emission targets. What we still expect that in 25, we're not going to hit the target, but we can compensated through 26 and 27, it's not alleviating the pressure at all.

Sebastian Rudolph: Well, we still expect that in 2025 we're not going to hit the target, but we can compensate it throughout 2026 and 2027. It's not alleviating the pressure at all because at 2026 and 2027, we need to overperform with the ID.2 and the ID.2 family and the ID.1, but it gives us a total of three years, right? This is why we welcome the proposal made by the European Commission, just because it gives us more breathing space in 2025 not to pay any fines, so actually reinvest that money into our business. Then in 2026 and 2027, we'll be hopefully performing better. Perhaps to add a few more facts and figures here, we are obviously very happy about the very positive order intake that we've noticed now at the beginning of this year, also thanks to our new products.

Oliver Blume: Well, we still expect that in 2025 we're not going to hit the target, but we can compensate it throughout 2026 and 2027. It's not alleviating the pressure at all because at 2026 and 2027, we need to overperform with the ID.2 and the ID.2 family and the ID.1, but it gives us a total of three years, right? This is why we welcome the proposal made by the European Commission, just because it gives us more breathing space in 2025 not to pay any fines, so actually reinvest that money into our business. Then in 2026 and 2027, we'll be hopefully performing better. Perhaps to add a few more facts and figures here, we are obviously very happy about the very positive order intake that we've noticed now at the beginning of this year, also thanks to our new products.

Patricia Nielsen: Because at 26, and 27, we need to over perform with the idea to.

Patricia Nielsen: Two family and the other one but it gives us a total of three years right and this is why we welcome. The proposal made by the European Commission, just because it gives us more breathing space in 2025 not to pay any fines so directly reinvest that money into our business and then in 'twenty six 'twenty seven will be hopefully performing better.

Patricia Nielsen: And perhaps.

Patricia Nielsen: To add a few more facts and figures here. We're obviously very happy about the very positive order intake that we've noticed at the beginning of this year also thanks to our new products.

Sebastian Rudolph: For EVs in Europe, we are by far the market leader now, and Arno Antlitz mentioned the ID.7. The ID.7 is the market leader in electric vehicles in Germany now, and that is very positive.

Oliver Blume: For EVs in Europe, we are by far the market leader now, and Arno Antlitz mentioned the ID.7. The ID.7 is the market leader in electric vehicles in Germany now, and that is very positive. When it comes to the first six best-selling electric vehicles in Germany, it's all of them are from the Volkswagen Group. Out of the 10, the first six are the Volkswagen Group, and that provides us a good tailwind.

For Evs in Europe, we are by far the market leader.

Speaker Change: I know analysts mentioned the idea of seven the Audi seven is the market leader in electric vehicles in Germany, now and that is very positive.

[Company Representative] (Volkswagen AG): When it comes to the first six best-selling electric vehicles in Germany, it's all of them are from the Volkswagen Group. Out of the 10, the first six are the Volkswagen Group, and that provides us a good tailwind.

Patricia Nielsen: Yes.

Patricia Nielsen: That's why when it comes to the first.

Patricia Nielsen: For the six best selling electric vehicles in Germany.

Patricia Nielsen: All of them are from the Volkswagen group So out of the 10. The first six the Volkswagen group and that provides us a good tailwind.

Arno Antlitz: We go to The Wall Street Journal. Stephen Wilmot, you get the microphone. Floor is yours.

Sebastian Rudolph: We go to The Wall Street Journal. Stephen Wilmot, you get the microphone. Floor is yours.

Speaker Change: Then we go to the Wall Street journal's Stephenville, not you get the microphone floor is yours.

Stephen Wilmot: Thank you. Well, you answered a lot of my questions, thanks to the question from my colleague from Les Echos. Maybe you can complete the picture in terms of current orders and where you expect this up to 5% growth to come from by explaining how things are progressing in the US, because you said you expect growth in Europe and growth in the US to offset the weaker market share in China. I mean, is this growth coming from volume growth, or is it higher prices? So where is this growth coming from? You've kind of answered that question in Europe, but maybe you can just complete it in the US.

Speaker Change: Thank you well you answered a lot of my questions.

Speaker Change: Thanks for the question for my colleague our families at home, but.

Speaker Change: You can.

Speaker Change: Complete the picture in terms of.

Speaker Change: Current orders and where you expect this up to 5% growth to come from by explaining.

Speaker Change: How things are progressing in the U S. Because you said.

Speaker Change: You expect growth in Europe and growth in the U S.

Speaker Change: To offset the weaker market.

Speaker Change: Our market share in China.

Speaker Change: And I.

Speaker Change: It is this growth coming from volume growth or is it.

Speaker Change: Higher prices.

Speaker Change: <unk>.

Speaker Change: That is why is this growth coming from you've kind of answer that question and you're in the in Europe, but maybe you can just completed in the U S. Secondly.

[Analyst]: Secondly, you talked about your CapEx guidance, including plant investments in the US for Scout. I'm just checking, are there any other plant investments included in your guidance for this year in the US?

Speaker Change: You talked about your Capex.

Speaker Change: Capex guidance, including plant investments in the U S for scout.

Speaker Change: I'm just checking.

Speaker Change: Any other plant investments included in your guidance for this year in the U S.

[Company Representative] (Volkswagen AG): Yeah. Mr. Wilmot, I take this question. Growth, yes, we had really good growth momentum last year already, specifically brand Volkswagen. I think brand Volkswagen was even 16 or 18 percent, something like this up in US. In 2025, the brand will bring the all-new Tayron. We want to grow in ID.4, we bring the ID. Buzz, and we want to continue with our current model portfolio. This is Volkswagen brand and then obviously Audi as well. They have the renewed model lineup, Q6 e-tron, Audi A6, Audi A5, which brand new cars, which will also hit the American showrooms throughout 2025. Porsche, I don't know, Oliver, whether you want to comment on Porsche.

Oliver Blume: Yeah. Mr. Wilmot, I take this question. Growth, yes, we had really good growth momentum last year already, specifically brand Volkswagen. I think brand Volkswagen was even 16 or 18 percent, something like this up in US. In 2025, the brand will bring the all-new Tayron. We want to grow in ID.4, we bring the ID. Buzz, and we want to continue with our current model portfolio. This is Volkswagen brand and then obviously Audi as well. They have the renewed model lineup, Q6 e-tron, Audi A6, Audi A5, which brand new cars, which will also hit the American showrooms throughout 2025. Porsche, I don't know, Oliver, whether you want to comment on Porsche.

Speaker Change: Yeah, I was with a woman that Texas Christian crossing Sps taught really good growth momentum last year already specifically Brent talks about I think Grand Forks, one was even 16 or 18% six something like this up in in U S.

Speaker Change: And in 2025.

Brad: Brad will bring the all new tyron.

Speaker Change: And and so we want to grow in the other four we bring the idea bus.

Brad: And we want to continue with our current modern portfolio.

Brad: This is a flex one brand and then obviously audience well there the renewed model lineup to six it drawn Audi a six.

Brad: Audi a five.

Brad: Which brand new costs, which will also hit the the American showrooms.

Brad: Throughout the year 2025, so and Pos.

Brad: I don't know, whether you want to comment on pause.

Oliver Blume: At Porsche, we have a complete new product portfolio with 5 of 6 model lines. The Cayenne is already in the market. The sales last year for the Cayenne was the best year ever. Now we are entering the US market also with the new Panamera, the new Taycan, the Macan Electric, and also the new 911 for the first time in history as a hybrid version. We are expecting also a continued growth in the US. The US is the biggest market for Porsche, the huge fan base. With the new products, that sounds very promising.

Brad: Is it possible you have a complete new product portfolio August five of six model lines, they and it's already in the market there.

Brad: The states last year for the Caribbean was the best year ever and now we are entering the market I'm also with a new panamera and your take on the electric Mccaughan and authors and United 11 for the first time in history is a hybrid version and so we are expecting also a continued growth in the U S. U S is the biggest.

Brad: <unk> four four quarter.

Brad: Huge fan base and with our new products, that's that sounds very promising in terms of investment of course, a major investment is Scott we are very excited about that.

[Company Representative] (Volkswagen AG): Yeah. In terms of investment, of course, a major investment is Scout. We are very excited about this project. This project will give us the opportunity to enter these all-American segments. Yeah. Pickup, rugged SUVs, some of basically the most promising segments in the market, and we will continue to ramp up there. We have investments in the planning for the Tayron, which is invested in Mexico. But we also start the ramp-up of our battery factory in Ontario, Canada. These are the major investments we included in our investment planning for 2025 for the US. Of course, model improvements in Atlas Cross Sport, but these are smaller amounts.

Oliver Blume: Yeah. In terms of investment, of course, a major investment is Scout. We are very excited about this project. This project will give us the opportunity to enter these all-American segments. Yeah. Pickup, rugged SUVs, some of basically the most promising segments in the market, and we will continue to ramp up there. We have investments in the planning for the Tayron, which is invested in Mexico. But we also start the ramp-up of our battery factory in Ontario, Canada. These are the major investments we included in our investment planning for 2025 for the US. Of course, model improvements in Atlas Cross Sport, but these are smaller amounts.

Brad: Protect will.

Brad: Will give us the opportunity to endo.

Brad: This all American segments out.

Brad: You pick up the rocket Suvs.

Brad: Basically the most promising segment in the market and we will continue the ramp up there we have investments in the planning for the Tyra, which is invested in in Mexico about.

Brad: We also start the ramp up of our better effective victory in Ontario in Canada. So these are the major investments.

Brad: We included in our planning investment planning for 2025 for the U S.

Brad: Of course.

Brad: <unk>.

Brad: Movements in Atlas Atlas Cross board, so, but these are smaller smaller months.

Marco Engemann: With a view to the time, we would go to the last round of questions and start with dpa-AFX, Marco Engemann. So please bring the microphone to him. Comes from the other side. Over to you, sir. Yes. Thank you so much, Mr. Antlitz. You've just briefly referred to it that you have planned for EUR 10 billion batteries in midterm financial planning. In your speech, it sounded as if you had tweaked that a bit. Did you reduce capacity somewhat or delayed them, or how do we have to imagine that? Yes. It's clear. I can give you the number. Two or three years ago, in the EUR 180 billion, we had EUR 15 billion included. That's, of course, our task. We are adapting the ramp-up of capacities in PowerCo to the demand.

Sebastian Rudolph: With a view to the time, we would go to the last round of questions and start with dpa-AFX, Marco Engemann. So please bring the microphone to him. Comes from the other side. Over to you, sir.

Speaker Change: MIT Blake after typing via I and with a view to the time, we would go to the last round of questions and start with D. P. A F X mark of animals.

Speaker Change: So please bring the microphone team comes from the other side over to you Sir yes. Thank you. So much Mr. Unclear as you have just briefly refer to it that you have planned for 10 billion batteries and midterm financial planning in your speech it sounded as if you had tweaked that a bit.

Marco Engemann: Yes. Thank you so much, Mr. Antlitz. You've just briefly referred to it that you have planned for EUR 10 billion batteries in midterm financial planning. In your speech, it sounded as if you had tweaked that a bit. Did you reduce capacity somewhat or delayed them, or how do we have to imagine that?

Speaker Change: Did you reduce capacity somewhat or delay them or how do we have to imagine that absolutely. Yes. Its clear I can give you the number two or three years ago in some of the 180. We had 15 billion included but that's of course, our task we are adapting.

Arno Antlitz: Yes. It's clear. I can give you the number. Two or three years ago, in the EUR 180 billion, we had EUR 15 billion included. That's, of course, our task. We are adapting the ramp-up of capacities in PowerCo to the demand.

Speaker Change: Ramp up of capacities in power, okay to the demand and the way you have to see this is we are staying with the three factories and says get out we are looking forward to the ramp up in 2025, and we have Valencia, and Ontario in Canada, and such a factory is not a kind of monolithic thing you in.

Arno Antlitz: The way you have to see this is we are staying with the three factories in Salzgitter. We are looking forward to the ramp-up in 2025. We have Valencia and Ontario in Canada. Such a factory is not a kind of monolithic thing. You invest into blocks per factory. A block has 18 or 20 gigawatt hours. What we've done, the SOPs for the three factories are fixed, but the ramp-up of the individual blocks, for example, in Canada or in Valencia, we have delayed a bit time-wise simply because we are planning less electric cars than in the past once we started with PowerCo, so we have more ICE cars now, and thus investment automatically is delayed somewhat from this planning round. Of course, we're keeping the ramp-up, and we are simply adapted to the market need.

Speaker Change: West into blocks per factory block has 18 or 20 gigawatt hours and what we've done is a piece of the three factories are fixed but the ramp up of the individual blocks for example in Canada or in Valencia, we have delayed time wise simply because we are planting less electric.

Speaker Change: In the past once we started with power closer we have more I C E cars now and thus.

Speaker Change: Mend automatically is delayed somewhat from this planning around but of course, we're keeping the ramp up and we have somebody adapted it to the market need.

Arno Antlitz: The one but last question, Kate Ferguson, Deutsche Welle. Over to you.

Sebastian Rudolph: The one but last question, Kate Ferguson, Deutsche Welle. Over to you.

Kate Ferguson: And one last question Kate Ferguson Deutsche Welle, it over to you.

Kate Ferguson: Hello, and good morning. Thank you. First question goes to Mr. Blume. We know there have been meetings with Chinese investors as regards the use of German factories. Can you give us a short update on these meetings and how a potential cooperation could look like? To Mr. Antlitz, you have mentioned that you want to have or that you have to have a more robust setup regionally. Apart from US and China, do you also look at other countries, specific countries like India, for example?

Kate Ferguson: Hi, Martin and Hello, and good morning. Thank you first question goes to Mr. Bloom, We know there have been meetings the Chinese investors as regards to use of German factories can you give us a short update on these meetings and how a potential cooperation could look like.

Speaker Change: And then to Mr. Unless you have mentioned that you wanted to have or that you have to have a more robust setup.

Speaker Change: Regionally apart from U S and China do you also look at other countries, especially in countries like India for example.

Arno Antlitz: First of all, I'd like to adjust one thing here. There have not been any talks with Chinese investors as regards the use of German factories.

Oliver Blume: First of all, I'd like to adjust one thing here. There have not been any talks with Chinese investors as regards the use of German factories. What we do, however, of course, we do have partners in China and the topic of Europe actually comes on the agenda, and we are being asked how something like that could be done. As regards the use of factories of the Volkswagen Group, there is no decision. We are giving information as to how we would do something as a lot entails, not just factories. You also need to build up a market. Because we have long partnerships for decades there. We are available, of course. But to make it very clear, that was a wrong interpretation.

Speaker Change: Yeah.

Speaker Change: First of all I'd like to just one thing here they have not been any talks that Chinese investors as regards to use of German factories.

Sebastian Rudolph: What we do, however, of course, we do have partners in China and the topic of Europe actually comes on the agenda, and we are being asked how something like that could be done. As regards the use of factories of the Volkswagen Group, there is no decision. We are giving information as to how we would do something as a lot entails, not just factories. You also need to build up a market. Because we have long partnerships for decades there. We are available, of course. But to make it very clear, that was a wrong interpretation. Our German plants, we have not looked at them so far. Ms. Ferguson, thank you very much for the question. I strongly focused on the three big markets, but we're not giving up the others.

Speaker Change: What we do however of course, we do have partners in China, and the topic of Europe actually comes on the agenda and we are being asked how something like that could be done.

Speaker Change: And as regards to use of factories of the Volkswagen Group There is no decision.

Speaker Change: We are giving information as to how we would do something is a lot into it not just factories you also need to build up a market because we have long partnerships for decades. There. We are available of course, but to make it very clear.

Oliver Blume: Our German plants, we have not looked at them so far. Ms. Ferguson, thank you very much for the question. I strongly focused on the three big markets, but we're not giving up the others.

Speaker Change: Does it run interpretation ones Jammin plants, we have not looked at them.

Speaker Change: So far this figure so thank you very much for the question I strongly focused on the three big markets, but we're not giving up the other is in South America, we want to continue to play a leading role at South Africa, we have a large factory there and India. That's a very good buzz word here, we've been in the Indian market for a long period.

Sebastian Rudolph: In South America, we want to continue to play a leading role in South Africa. We have a large factory there. India, that's a very good buzzword here. We've been in the Indian market for a long period, since 20 years or something, we've been in India with a plant. We have very successful products there when it comes to market entry, not so much volume. In India, you need very specific requirements. You have to be very cost competitive. You have a very good cost basis. You have to have local content. You have to have economies of scale, and the market is now moving towards EVs. We want to continue to work on the Indian market.

Oliver Blume: In South America, we want to continue to play a leading role in South Africa. We have a large factory there. India, that's a very good buzzword here. We've been in the Indian market for a long period, since 20 years or something, we've been in India with a plant. We have very successful products there when it comes to market entry, not so much volume. In India, you need very specific requirements. You have to be very cost competitive. You have a very good cost basis. You have to have local content. You have to have economies of scale, and the market is now moving towards EVs. We want to continue to work on the Indian market.

Speaker Change:

Speaker Change: 20 years or something we've been in India, where the plant we're very successful products that when it comes to the market entry not so much volume in India in India, you need very specific big ones you have to be very cost competitive you have a very good cost basis, you have to have local content you have to have economies of scale and the market is now moving towards Evs.

Speaker Change: We want to continue to work on the Indian must be want to be present in the Indian market, but will very likely only be able to do it with a partner and will only want to do it with a partner is has something to do with the fact that as regards.

Sebastian Rudolph: We want to be present in the Indian market, but we'll very likely only be able to do it with a partner, and we'll only want to do it with a partner. This has something to do with the fact that as regards the investment, we focus our approach. At the moment, we're in very good talks. It's much too early to communicate something, but we don't want to give up the Indian market. Quite to the contrary. I believe that is the next question. Oliver, they had asked a question on defense. This is from Hamburg, but it has been asked by Kate Ferguson. It's with Markus Schramm now from Donaukurier. First row, please. Thank you. Now, after the English question, I'm going to ask a variant question. I'm from Ingolstadt.

Oliver Blume: We want to be present in the Indian market, but we'll very likely only be able to do it with a partner, and we'll only want to do it with a partner. This has something to do with the fact that as regards the investment, we focus our approach. At the moment, we're in very good talks. It's much too early to communicate something, but we don't want to give up the Indian market. Quite to the contrary.

Speaker Change: The investment we focus our approach at the moment, we had very good talks it's much too early to communicate something but we don't want to give up the Indian market quite to the contrary if et cetera.

Sebastian Rudolph: I believe that is the next question. Oliver, they had asked a question on defense. This is from Hamburg, but it has been asked by Kate Ferguson. It's with Markus Schramm now from Donaukurier. First row, please.

Speaker Change: The next question.

Speaker Change: All of them they have to ask a question on defense this unopposed sometime book, but.

Speaker Change: It has to be noticed by focusing so it's with my customer snow from toner cooler first stroke. Please.

Markus Schramm: Thank you. Now, after the English question, I'm going to ask a variant question. I'm from Ingolstadt. We are a big size of CARIAD, and you didn't say a lot about CARIAD. What about its future? What about jobs at CARIAD? What about the structure? Is that going to be sidelined between Rivian and XPENG?

Speaker Change: Okay.

Speaker Change: But after the English question I'm going to ask a varian question I'm from Ingalls start we pick our sites of a carryout or you didn't say it but a lot about carryout what about its future.

Markus Schramm: We are a big size of CARIAD, and you didn't say a lot about CARIAD. What about its future? What about jobs at CARIAD? What about the structure? Is that going to be sidelined between Rivian and XPENG? Yeah. CARIAD. Okay. CARIAD. In the past 2 years, we've been looking into turning around CARIAD, and you know that really well. We had some larger problems there in the past years. The positive news is it has worked. Products have started successfully in different markets. We're getting good feedback for the software, so that was quite a big effort for the new CARIAD management team to get that done. This has happened.

Speaker Change: What about jobs at carrier what about the structure is that going to be a sideline.

Oliver Blume: Yeah. CARIAD. Okay. CARIAD. In the past 2 years, we've been looking into turning around CARIAD, and you know that really well. We had some larger problems there in the past years. The positive news is it has worked. Products have started successfully in different markets. We're getting good feedback for the software, so that was quite a big effort for the new CARIAD management team to get that done. This has happened.

Speaker Change: Sideline between Brooklyn and shopping.

Speaker Change: So carriers of.

Speaker Change: Carrier.

Speaker Change: They are stocked in the past two years, we've been looking into turning around carrier and you know that really well we had some larger.

Speaker Change: A lot of problems in the past years, but the positive news as it has work products have started to.

Speaker Change: Successfully in different markets, we're getting good feedback about the software. So that was a quite of a big effort by the new carrier management team to get that done. So this has happened but at the same time. We also looked at the futures, who software requirements or the different regions because the ecosystems of different China in the western World is quite different so.

Sebastian Rudolph: At the same time, we also looked at the future software requirements of the different regions because the ecosystems are different. China and the Western world is quite different. We'd like to move to a zonal architecture very soon, and that is why we have partnerships with XPENG in China and Rivian in the US. CARIAD in the future will be playing an important role in the general network of our global software strategies. In the past months, we also worked on a software governance scheme. In other words, we are spelling out who's doing what in what part of the world, where are the responsibilities and the objectives for each of those operations.

Oliver Blume: At the same time, we also looked at the future software requirements of the different regions because the ecosystems are different. China and the Western world is quite different. We'd like to move to a zonal architecture very soon, and that is why we have partnerships with XPENG in China and Rivian in the US. CARIAD in the future will be playing an important role in the general network of our global software strategies. In the past months, we also worked on a software governance scheme. In other words, we are spelling out who's doing what in what part of the world, where are the responsibilities and the objectives for each of those operations.

Speaker Change: We'd like to move to a zone all architecture very soon and that is why we have partnerships with shopping in China in Caribbean and the U S carriers in the future will be playing an important role in the general network of a global software strategies.

Speaker Change: We've been in the past months. We also worked on our software governance scheme in other words, we're spelling out who's doing what and what part of the world where other responsibilities and the objectives for each of those operations.

Sebastian Rudolph: In terms of CARIAD, we now need to work on the existing platforms that we already have, because those are the ones that will be there to stay way into the future, into 2030, the E3 1.1 and the E3 1.2 software package developed by CARIAD now. We're just launching it very soon with new vehicles. CARIAD will be playing an important role in our cross-divisional responsibilities. Autonomous driving happening in China. This is going really well with our partner, Horizon Robotics. The name now is CARIZON as a combination of CARIAD and Horizon Robotics, and Arno has talked about it. We also have a partnership with Bosch, which is now on a solid footing, which allows us to develop a European stack for autonomous driving.

Oliver Blume: In terms of CARIAD, we now need to work on the existing platforms that we already have, because those are the ones that will be there to stay way into the future, into 2030, the E3 1.1 and the E3 1.2 software package developed by CARIAD now. We're just launching it very soon with new vehicles. CARIAD will be playing an important role in our cross-divisional responsibilities. Autonomous driving happening in China. This is going really well with our partner, Horizon Robotics. The name now is CARIZON as a combination of CARIAD and Horizon Robotics, and Arno has talked about it. We also have a partnership with Bosch, which is now on a solid footing, which allows us to develop a European stack for autonomous driving.

Speaker Change: In terms of carrier, we now need to work on the existing platforms that we already have because those are the ones that will be there to stay way into the future and in the 2030, the three 1.1 and the three 1.2.

Speaker Change: Software package developed by carrier now and we're just launching it very soon with new vehicles. So carriers will be playing an important role in a cross divisional responsibilities autonomous driving that's happening in China. This is growing really well with us.

Speaker Change: Without a partner horizon robotics or the name now is call Roizen as a combination of carriage on horizon robotics and others talked about it. We also have a partnership with Porsche which is now on a solid footing, which allows us to develop.

Sebastian Rudolph: CARIAD also works on leads on entertainment and data management for cloud services in the back end. With that in mind, the important responsibilities for the future. We need to rescale the operations at CARIAD depending on the requirements needed for that operation. This is true for dimensioning of tasks, and this is an ongoing process. We do that for all of our operations, and CARIAD is no exception there. Again, I'm saying it's an important part of the software strategy, but the partner strategy is just as important to have the right partners for the right solutions that we need. Then I'd like to go back to something that Ms. Poys has asked. Earlier, we talked about China. Ms. Poys asked about defense.

Oliver Blume: CARIAD also works on leads on entertainment and data management for cloud services in the back end. With that in mind, the important responsibilities for the future. We need to rescale the operations at CARIAD depending on the requirements needed for that operation. This is true for dimensioning of tasks, and this is an ongoing process. We do that for all of our operations, and CARIAD is no exception there. Again, I'm saying it's an important part of the software strategy, but the partner strategy is just as important to have the right partners for the right solutions that we need. Then I'd like to go back to something that Ms. Poys has asked. Earlier, we talked about China. Ms. Poys asked about defense.

Speaker Change: European stock for autonomous driving carry it also works on the leads on infotainment and data management for cloud services in the backend.

Speaker Change: So with us in mind.

Speaker Change: Important responsibilities for the future.

Speaker Change: However, we need to rescale the operations at carrier, depending on the requirements needed for that operation.

Speaker Change: And also this is true for dimensioning of tasks and this is an ongoing process. We do that for all of our operations and to carry out is no exception. There. So again I'm, saying, it's an important part of the software strategy, but the partner strategy is just as important to have the right partners for the right solutions that we need and then I'd like to go back to something that.

Speaker Change: As Paul says asked earlier, we talked about China, I mean as far as asked about defense.

Sebastian Rudolph: First off, I think given the current geopolitical situation, what we are seeing now in Germany and Europe is exactly the right decisions that are being taken in the sense that we need to invest more in order to be safe again. We are not in specific talks about what Volkswagen can do. My take on is that if there was the option of military vehicles going forward, we would have to look at the concepts. We did that in the past. Volkswagen Group has automotive competence. We are ready to provide consultancy and advice. At where we are, this is just open-ended and initiatives will be brought forward by the defense industry more than anything. Therefore, there's nothing we can report about things that are ongoing.

Oliver Blume: First off, I think given the current geopolitical situation, what we are seeing now in Germany and Europe is exactly the right decisions that are being taken in the sense that we need to invest more in order to be safe again. We are not in specific talks about what Volkswagen can do. My take on is that if there was the option of military vehicles going forward, we would have to look at the concepts. We did that in the past. Volkswagen Group has automotive competence. We are ready to provide consultancy and advice. At where we are, this is just open-ended and initiatives will be brought forward by the defense industry more than anything. Therefore, there's nothing we can report about things that are ongoing.

Speaker Change: First off I think given the current geopolitical situation.

Speaker Change: What we are seeing now in Germany, and Europe is exactly the right decisions that are being taken in the sense that we need to invest more in order to be safe again.

Speaker Change: But we're not in specific talks about what Volkswagen can do.

Speaker Change: My take on it if there were.

Speaker Change: The board has the option of military vehicles going forward, we would have to look at the concepts. We did that in the past Volkswagen group has automotive competence, we are ready to provide consultancy and advice, but at where we are this is just open ended.

Speaker Change: Hum.

Speaker Change: Initiatives will be brought forward by the defense industry more than anything. So therefore, there's nothing we can report about about things that are going on.

Sebastian Rudolph: With that in mind, Oliver Blume, Arno Antlitz, thank you very much for those explanations. Now to all of you, either here in Wolfsburg or at Autostadt, and those of us joining online, thank you for this very constructive exchange. If you still have questions, please talk to us. The communications team is always at your disposal. Thank you very much indeed for your attention. See you. Bye-bye. Auf Wiedersehen. This was our annual media conference of Volkswagen Group. Thank you very much, everyone.

Speaker Change: With that in mind on all of our bloomer on the analysts. Thank you very much for those explanations.

Speaker Change: To all of you either here in both slug, it out to a start and also those joining online and thank you for this very constructive exchange. If you still have questions. Please talk to US. The communications team is always at your disposal. Thank you very much indeed for your attention and see you buy by a veto, saying this was a major.

Speaker Change: Media Conference of Volkswagen Group, Thank you very much everyone.

Speaker Change: [music].

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