The Volkswagen Group made significantly less profit last year due to the hard competition in the Far East and due to high conversion costs. The bottom line was that VW earned almost 31 percent less than a year earlier at 12.4 billion euros, as the company said. A significantly lower result came from the former winning charm China. In addition, high costs were due, among other things, for the Audi plant in Brussels. In day -to -day business, the operational result fell by a good 15 percent to 19.1 billion euros. This corresponded to a margin of 5.9 percent after seven percent in the previous year. VW kept up better than recently. In contrast, sales increased by almost one percent to 324.7 billion euros. The dividend is to be shortened by 30 percent to 6.36 euros per preferred preference share. This is a clearer average than expected. Board for refraining from salaries is now also involved in the group of salarys in the savings program. In 2025 and 2026 they forego eleven percent of their remuneration, a spokesman for the supervisory board confirmed. The Supervisory Board accepted a corresponding proposal from the top of the group at its most recent meeting. In the years afterwards, the remuneration should then be gradually taken up again. In fact, the waiver of five percent of the fixed content was agreed, which is only the smaller part of the remuneration. The bottom line was that CEO Oliver Blume even remained more, as can be seen from the annual report – namely 10.35 million euros, after 9.7 million euros a year earlier. According to the waiver agreement, the fixed content had shrunk by five percent from 1.3 to 1.235 million euros. Flower is not only the CEO of Volkswagen AG, but still leads the subsidiary Porsche AG, where its salary claim rose. In total, the nine group directors earned around 40 million euros last year.
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Even more bonus companies and union were getting on a renovation program for the core brand VW in December. 35,000 jobs are to be dropped in Germany by 2030, which corresponds to around every fourth place. In order to reduce the wage costs, various bonus payments and allowances are shortened and wage increases are put on ice. In return, VW waives for work closings and operating terminations. Shortly, VW employees do not have to do without their usual bonus payments. For the past year, the tariff employees receive a premium of 4799.50 euros and thus even a little more than in the previous year than the profit sharing was 4735 euros. The decisive factor for the height is the result of the brands VW (passenger cars and commercial vehicles) in the two past years. Around 120,000 employees get the bonus. After 1879.50 euros have been transferred, the larger sum (2920 euros) comes with the May content. More on the topic of a phase of increased investments, VW, meanwhile, wants to significantly reduce expenses in the coming years. From 2025 to 2029, a total of around 165 billion euros are to be put into new facilities, technology and software, said CFO Arno Antlitz. The Wolfsburgers had planned around 180 billion euros for the previous five -year period from 2024 to 2028. In addition, the investments in the combustion engine would gradually go back. However, the group wants to continue to focus on flexibility in order to be able to offer customers different drive types. “We will continue to adapt to the market environment of rushing up our battery division,” he said. Hoping on more growth people had reserved a lot of money for their own battery cell works, but the ride of electric cars is running more than expected in the industry. In addition, VW wants to get to the destination with software and networking through partnerships such as the US electric car provider Rivian. Despite the industry weakness, the VW group is aiming for growing sales this year. The proceeds at Group level should increase up to five percent compared to the previous year’s value. VW boss Oliver Blume expects the operational return on a range of 5.5 to 6.5 percent and thus remains roughly at the level of the previous year. According to VW, challenges arise primarily from an environment of political uncertainty, increasing trade restrictions and geopolitical tensions.
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