Volkswagen, the renowned German automaker, is banking on a wave of new models, including fully electric vehicles, to drive up orders in Western Europe in the coming months. The company, which recently introduced its ID.7 and has ambitious plans to unveil a record-breaking 30 additional models throughout 2024, reported a promising start to the year compared to the same period last year.

Acknowledging potential challenges in the automotive industry, such as rising costs and intense competition, Volkswagen has adopted a proactive approach. The company released a modest outlook for 2024 while simultaneously announcing a higher dividend, signalling confidence in its ability to navigate through the evolving market landscape.

Arno Antlitz, Volkswagen's finance chief, emphasized the importance of sustainable success by prioritizing the ramp-up of new vehicle production and cost reduction measures. Notably, Volkswagen is eyeing profitable growth in North America as part of its strategic focus for 2024.

To streamline operations and enhance efficiency, Volkswagen has unveiled plans to reduce administrative staff costs at its VW brand by 20 per cent, primarily through partial and early retirement schemes rather than layoffs.

Despite potential headwinds, Volkswagen reported a notable improvement in the operating profit margin for its core mass-market brands, rising to 5.3 per cent in the previous year from 3.6 per cent in 2022. The company has set an ambitious target of achieving an 8 per cent operating profit margin, reflecting its commitment to sustainable growth and financial performance.

(With Reuters inputs)