Volkswagen Group’s profits dropped 20% in Q1, but it remains confident in hitting 2024 targets
Volkswagen Group released its financial numbers for Q1 2024 today, following similar trends from other EU-based automakers. The numbers detail a slowing of sales and a drop in profits. Despite a 20% decrease, the Group remains optimistic that it will end the year at its financial targets.
Today’s Q1 2024 report from Volkswagen Group comes with little surprise, as the German automaker already gave the public an idea of its sales woes earlier this month when it shared its delivery numbers.
Deliveries for Q1 were up 3% overall year-over-year, but BEV sales fell. EV sales were up in China (+91% YOY) but stumbled in Volkswagen’s native Europe (-24%) and the US (-16%). It’s top-selling models in the first quarter were the ID.4/ID.5 (34,600 units), ID.3 (26,100), Audi Q4 e-tron (22,800), Skoda Enyaq (14,000), Audi Q8 e-tron (9,600), and VW ID.Buzz (7,000).
At the same time, Volkswagen Group shared that deliveries of Porsche’s lone EV, the Taycan, also fell by 54% in Q1 2024. Still, a bolstered 2025 model year Taycan is on the way alongside several new BEV models from Volkswagen that the auto conglomerate hopes will help it bounce back in 2024.
Today, we got a better idea of VW Group’s Q1 numbers beyond mere deliveries, which includes a 20% drop in profits.
Volkswagen’s sales and revenues dropped in Q1 2024
Per a detailed Q1 2024 report released by Volkswagen Group today, it is off to a slower start this year, although the German automaker states it anticipated this dip and relayed confidence going forward. Per VW Group CFO and COO Arno Antlitz:
As expected, our first quarter results show a slow start to the year. We remain confident of achieving our financial targets for 2024. A strong March, the solid order bank and the improving order intake in the past months are encouraging and should already have a positive impact in the second quarter. We expect additional momentum over the course of the year from the launch of more than 30 new models across all brands. At the same time the effects our efficiency programs will gradually unfold as the year progresses. In this context, it will be particularly important to vigorously counteract the increase in fixed costs and exercise investment discipline.
Notable figures include 75.5 billion euros in sales revenue, down from 76.2 billion in Q1 2023. Furthermore, VW Group reports EUR 4.6 billion in operating results, down 20% compared to a year ago with an operating margin of 6.1%. Volkswagen cites “lower sales volumes, an unfavorable country, brand and model mix as well as an increase in fixed costs” as the reasoning behind its negative Q1 2024 results.
In terms of overall sales, Asia-Pacific saw 2% growth while South America recorded record numbers, up 19% year over year. That said, sales in North America were down 10%, followed by the rest of the world at 5%, for a grand total of 2.1 million vehicles sold globally in Q1.
Despite many minuses on its Q1 2024 spreadsheet, Volkswagen Group anticipates a sales revenue increase of up to 5% and an operating margin between 7 and 7.5%, clearing the way for a clean 2024 outlook it remains confident in. Per the release:
In the Automotive Division, the Group assumes an investment ratio of between 13.5 percent and 14.5 percent in 2024. The automotive net cash flow for 2024 is expected to be between EUR 4.5 and EUR 6.5 billion. This will include in particular investments for the future and cash outflows from mergers and acquisitions for the battery business, which are a vital pillar of the Volkswagen Group’s transformation. Net liquidity in the Automotive Division is expected to be between EUR 39 billion and EUR 41 billion in 2024. It remains the Group’s goal to continue its solid financing and liquidity policy.
Challenges will arise in particular from the economic situation, the increasing intensity of competition, volatile commodity, energy and foreign exchange markets, and more stringent emissions-related requirements.
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The Hyundai IONIQ 6 N is finally here, and it delivers. Hyundai’s electric sports car is loaded with fun new features, a sleek design (including a massive rear wing), 641 horsepower, and much more.
Meet the Hyundai IONIQ 6 N
After teasing the new model for the first time last month, Hyundai created quite a buzz. Now, we are finally getting our first look at the upgraded high-performance EV.
Hyundai unveiled the new IONIQ 6 N at the famed Goodwood Festival of Speed on Thursday in West Sussex, England. The upgraded model follows Hyundai’s first high-performance EV, the IONIQ 5 N.
At the event, the company boasted that its new electric sports car marks “a pivotal milestone in Hyundai N’s electrification journey,” adding “Hyundai N is once again redefining the boundaries of high-performance electrification with the debut of the IONIQ 6 N.”
The IONIQ 6 N delivers an impressive 641 horsepower (478 kW) and 77 Nm of torque, enabling a 0 to 100 km/h (0 to 62 mph) sprint in just 3.2 seconds. Its top speed is about 160 mph (257 km/h).
That’s when using Hyundai’s Launch Control, one of the many performance features the new EV offers. Like its other N models, the IONIQ 6 is based on three pillars: Corner Rascal, Racetrack Capability, and, of course, an Everyday Sportscar.
Powered by two electric motors, a 223 hp (166 kW) at the front and another 378 hp (282 kW) motor at the rear, for a combined 600 hp (448 kW).
Redefining the EV driving experience
The upgraded IONIQ 6 “redefines the EV driving experience,” according to Hyundai, thanks to its advanced in-house vehicle control software.
Central to this is Hyundai’s N Active Sound + system, which mimics the feel and sound of a traditional engine. An added N e-Shift simulates shifting gears.
And that’s just the start. Other performance features, such as N Drift Optimizer, N Grin Boost, and N Torque Distribution, give you even more control over the vehicle while delivering increased power.
The IONIQ 6 N is powered by an 84 kWh battery, providing a WLTP range of up to 291 miles (469 km). However, EPA figures will be revealed closer to launch. Given the IONIQ 5 N has an EPA-estimated range of up to 221 miles, you can expect it to be slightly higher when it arrives.
With a 350 kW DC fast charger, Hyundai’s new performance EV can recharge from 10% to 80% in about 18 minutes.
With a length of 4,935 mm, a width of 1,940 mm, and a height of 1,495 mm, the IONIQ 6 N is about the size of the Porsche Taycan.
Hyundai will showcase the new high-performance EV during the hillclimb event alongside other models like the IONIQ 5 N, IONIQ 6 N Drift Spec, and IONIQ 6 N with N Performance parts. Hyundai promises each vehicle brings unique capabilities to the event, “guaranteeing a dynamic and thrilling on-track experience for all attendees.” Check back soon for more info.
What do you think of Hyundai’s new electric sports car? Would you buy one over the Porsche Taycan? Let us know in the comments.
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Elon Musk said that Tesla owners will “soon” have access to Grok, a large language developed by Musk’s xAI startup, days after the AI started calling itself ‘MechaHitler’.
Yesterday, xAI launched Grok 4, the latest version of its large language model.
The new model is benchmarking very well, but that’s generally the case with the latest model to come out. It edges the latest models from Google and OpenAI on intelligence by a few points, but it falls behind on speed:
At the launch event, Musk announced that Grok will “soon” be integrated into Tesla vehicles.
This is something that the CEO has been discussing since founding xAI, which has been controversial because Musk has also positioned Tesla to compete in the AI space. He even stepped down from his role at OpenAI due to a “conflict of interest with Tesla.”
The announcement of the imminent integration of Grok into Tesla vehicles comes just days after the language model went haywire on X and started praising Hitler, referring to itself as ‘MechaHitler’, and made several antisemitic comments.
xAI acknowledge the issue and put Grok on timeout while they fixed it:
We are aware of recent posts made by Grok and are actively working to remove the inappropriate posts. Since being made aware of the content, xAI has taken action to ban hate speech before Grok posts on X. xAI is training only truth-seeking and thanks to the millions of users on X, we are able to quickly identify and update the model where training could be improved.
The “bug” came just a few weeks after Musk stated that he was displeased with Grok supporting left-wing narratives, even though it didn’t say anything inncurate, and that he would update Grok to “fix” it.
Now, the large language model (LLM) is expected to power the new voice assistant inside Tesla vehicles.
LLMs are becoming quite common in cars, especially premium vehicles. Ford, Mercedes-Benz, Stellantis, and a few others have all integrated Chat-GPT in some models.
Many Chinese automakers have also developed their own and deployed them in cars, even entry-level ones.
Tesla is playing catch up on that front.
Electrek’s Take
As I have previously stated, I think Musk is setting up Tesla to invest or even merge with xAI at a ridiculous valuation – making Tesla shareholders virtually pay twice for Twitter, which is now part of xAI.
This is how he will be able to gain wider control over the company’s share.
Of course, it will be widely challenged in court. In fact, shareholders have already filed a lawsuit alleging that Musk was in breach of fiduciary duties to Tesla shareholders when he started xAI.
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Pipeline Winding in Summer Mountain Landscape
Sarkophoto | Istock | Getty Images
From the first discovery in Prudhoe Bay in 1968, Alaskans have had a love-hate relationship with oil.
On one hand, it allowed Alaska to abolish its state income tax, fund most government operations and provide every Alaskan with a dividend that continues to this day. On the other hand, it has left the state at the near total mercy of the global oil market.
In recent years, that has proven to be a bad bet. And it is the major reason Alaska finishes at the bottom of the CNBC America’s Top States for Business rankings in 2025.
With the price of Alaska North Slope crude oil down by double digits from a year ago, according to the Alaska Department of Revenue, Alaska has America’s worst economy as measured by the CNBC study. Economy is the heaviest-weighted category under this year’s methodology.
Alaska’s gross domestic product growth is in the bottom ten nationally. The state’s economy grew by just 1.5% last year, compared to 2.8% nationally.
More crucially, the state’s fiscal year 2026 budget is based on a forecast of $68 per barrel for crude oil, and it is unclear if that will hold. Alaska North Slope crude traded as low as $63.49 on May 5 before rebounding above $70 in recent weeks. State forecasters are counting on oil for around 70% of the state’s revenue over the next ten years, or nearly half the state’s operating budget. And some localities are far more dependent.
“When you look at the economic engine by default,” North Slope Borough Mayor Josiah Patkotak told CNBC last month, “That happens to be oil and gas by about 98% of our operating budget.”
$40 billion bet on natural gas as diversifier
For decades, Alaska has sought ways to diversify its economy, but it has had limited success. Proposals have involved alternative energy, agriculture, and the state’s tourism sector.
Alaska Governor Mike Dunleavy speaks during a news conference at his office in Anchorage, Alaska, U.S. March 22, 2022.
Yereth Rosen | Reuters
In 2023, Gov. Mike Dunleavy, a Republican, signed legislation to put Alaska into the carbon market, using the state’s vast public lands for carbon storage, and to generate carbon offset credits for high carbon emitters in other states. But the program is still in the study phase. A report to the legislature in January said the program is not expected to generate any revenue until at least 2027.
More recently, the Trump administration is backing a proposal to build a natural gas pipeline alongside the Trans-Alaska oil pipeline, allowing the U.S. to ship liquid natural gas — a byproduct of North Slope oil production — to Asia.
The idea has been around for years, but the price tag, estimated at around $40 billion, was impossible for the industry to swallow even when petroleum prices were high.
Now, however, administration officials think that trade tensions might change the economics.
“There [are] countries around the world looking to shrink their trade deficit with the United States, and of course, a very easy way to do that is to buy more American energy,” U.S. Energy Secretary Chris Wright told CNBC’s Brian Sullivan in Prudhoe Bay last month.
“If you get the commercial offtakers for the gas, financing is pretty straightforward,” Wright said.
If the project gets off the ground, it could provide a huge boost to Alaska’s economy, though it would still be at the mercy of commodity prices.
Lack of tech infrastructure, high costs
Alaska’s struggling economy is a major reason for its poor competitive performance, but it is not the only one.
The state ranks No. 49 in Infrastructure. While the state’s roads and bridges are in better shape than in many states in the Lower 48, its virtual infrastructure leaves much to be desired. Fewer than 2% of Alaskans have access to affordable broadband service, according to BroadbandNow Research. The data center boom has passed Alaska by thus far, with only four in the entire state.
Alaska is a notoriously expensive place to live, especially in the many remote parts of the state.
“When you’re paying 16 bucks a gallon for milk, we’ve got to figure out how to make sure that you can afford to buy the milk so you can live here. We’ve got to make sure you can afford to buy the gas so you can hunt here,” said Patkotak.
But one aspect of life is a bargain in Alaska. At a time of soaring homeowner premiums, online insurance marketplace Insurify projects Alaska homeowners insurance premiums will average $1,543 this year, the second lowest in the nation.
Join the conversation. Didn’t see your state mentioned? You can see where it ranked overall, and in all 10 categories of competitiveness, in the full rankings of the 2025 America’s Top States for Business.
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