At 6.4%, operating return was well within the target corridor of 6-7% for 2024. All brands contributed to this achievement, reporting higher returns on the basis of focused cost management as well as increased implementation of synergy and efficiency measures within the Brand Group. The financial performance in the first quarter felt the impact of offsetting effects – these included, for example, the abrupt termination of government incentives for electric cars in the German market and the related discount measures at the beginning of the year. Furthermore, there was high depreciation attributable to investments in product campaigns and the related ramp-up of electric products.
The Brand Group Core was, however, able to counteract these effects in the first quarter of 2024 with a balanced product mix. The slight dip in demand for all-electric vehicles (BEV) was offset by higher deliveries of ICE models. Overall, stable Q1 unit sales figures at Brand Group level reflect these effects.
Key financial performance indicators confirm the strength and resilience developed by the Brand Group Core: with unit sales of 1,191,926, the Brand Group’s vehicle sales almost matched the high prior-year level (Q1 2023: 1,192,974 vehicles). Even though sales revenue came in at 32.8 billion euros – thus slightly lower than the very strong sales level of the previous year (Q1 2023: 33.2 billion euros) – operating profit before special items grew 21% to 2.1 billion euros (Q1 2023: 1.7 billion euros). The operating return (before special items) improved by 1.2 percentage points to 6.4%. Cash outflows in the first quarter were mainly attributable to preparations for new model ramp-ups. The Brand Group Core delivered 1,543,500 vehicles to customers in the first quarter of the year, 6.2% more than the same prior-year quarter (Q1 2023: 1,453,500 vehicles).