Our EV profit margins will match the ones for combustion engines sooner than planned, says Volkswagen CEO

  • Herbert Diess makes claim over EV profit margins at annual shareholder meeting
  • Bosses targeting replacing Tesla as world’s number one EV maker by 2025
  • VW wants half of its global output to be all-electric by 2030
  • It shifted some 452,000 BEVs around the world last year

Time 7:30 am, May 15, 2022

Volkswagen’s EV profit margins will match those of combustion engine-powered cars sooner than planned, the firm’s boss has said.

Herbert Diess, CEO of Volkswagen, didn’t put a specific date on when the landmark target would be hit but insisted things were ahead of schedule.

The Wolfsburg-based giant delivered some 452,000 BEVs around the world last year and wants half of its global output to be all-electric by 2030.

Bosses have also announced plans to build 800,000 full EVs worldwide this year before making 1.3m next year, Reuters reported.

Among Diess’s bolder targets is for VW to replace Tesla as the world’s biggest EV maker in the next three years.

Directors have conceded that they may be forced to increase EV prices before 2022 is out as they look to counter the rising cost of raw materials, but they insist margins are heading in the right direction.

Diess told VW’s annual shareholder meeting: ‘We expect that the e-mobility business will be as profitable as the combustion engine business earlier than planned.

‘Through good crisis management, we are financially robust and have strengthened our resilience.’

Earlier this month, Car Dealer reported that several Volkswagen Group brands had seen increased margins despite a 15 per cent fall in sales in the first quarter.

Volkswagen, Seat and VW Commercial Vehicles all saw an upswing, but Skoda suffered a decline because of consolidating its Russian business.

Jack Williams's avatar

Jack joined the Car Dealer team in 2021 as a staff writer. He previously worked as a national newspaper journalist for BNPS Press Agency. He has provided news and motoring stories for a number of national publications including The Sun, The Times and The Daily Mirror.

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