Business Development
Volkswagen AG (Condensed, in accordance with the German Commercial Code)
VEHICLE SALES
Volkswagen AG sold a total of 2,584,375 (2,632,144) vehicles in fiscal year 2017. Vehicles sold abroad accounted for a share of 70.0 (69.7)%.
PRODUCTION
Volkswagen AG produced a total of 1,224,609 vehicles at its vehicle production plants in Wolfsburg, Hanover and Emden in the reporting period (−1.3%). Volkswagen AG’s average daily production was 5,370 (5,423) units.
EMPLOYEES
As of December 31, 2017, a total of 117,420 (113,928) people were employed at the sites of Volkswagen AG, excluding staff employed at subsidiaries. Of this figure, 4,953 (4,999) were vocational trainees. 4,380 (2,936) employees were in the passive phase of their partial retirement.
Female employees accounted for 17.1 (17.0)% of the workforce. Volkswagen AG employed 5,069 (4,721) part-time workers. The percentage of foreign employees was 6.1 (6.1)%. 83.4 (83.5)% of the employees in Volkswagen AG’s production area had completed vocational or additional training in the reporting period. The proportion of graduates was 18.9 (18.8)% in the same period. The average age of employees in fiscal year 2017 was 43.6 (43.2) years.
(XLS:)
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EMPLOYEE PAY AND BENEFITS AT VOLKSWAGEN AG |
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|---|---|---|---|---|---|---|---|---|
€ million |
2017 |
% |
2016 |
% |
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|
|
|
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Direct pay including cash benefits |
7,637 |
70.7 |
7,138 |
71.2 |
||||
Social security contributions |
1,361 |
12.6 |
1,337 |
13.3 |
||||
Compensated absence |
1,161 |
10.7 |
1,099 |
11.0 |
||||
Retirement benefits |
640 |
5.9 |
456 |
4.6 |
||||
Total expense |
10,799 |
100.0 |
10,030 |
100.0 |
||||
RESEARCH AND DEVELOPMENT
Research and development costs for Volkswagen AG under the German Commercial Code increased to €4.8 (4.7) billion in the reporting period. 12,332 (12,380) people were employed in this area at the end of the reporting period.
EXPENDITURE ON ENVIRONMENTAL PROTECTION
When measuring expenditure on environmental protection, a distinction is made between investments and operating costs for production-related environmental protection measures. Of our total investments, only those that are spent exclusively or primarily on environmental protection are included in environmental protection investments. We distinguish here between additive and integrated investments. Additive environmental protection measures are separate and independent of other measures relating to the production process. They can be upstream or downstream of the production process. In contrast to additive environmental protection measures, integrated measures reduce the environmental impact already during the production process. In 2017 we invested primarily in soil and water pollution control.
The operating costs recognized for environmental protection relate exclusively to production-related measures that protect the environment against harmful factors by avoiding, reducing, or eliminating emissions by the Company. Resources are also conserved. For example, these include expenditures incurred to operate equipment that protects the environment as well as expenditures for measures not relating to such equipment. As in the previous year, the emphasis in 2017 was on sewage and waste management.
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VOLKSWAGEN AG EXPENDITURE ON ENVIRONMENTAL PROTECTION |
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|---|---|---|---|---|---|---|---|---|---|---|
€ million |
2017 |
2016 |
2015 |
2014 |
2013 |
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|
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Investments |
17 |
11 |
21 |
19 |
14 |
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Operating costs |
227 |
223 |
244 |
226 |
224 |
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OPERATING COSTS FOR ENVIRONMENTAL PROTECTION AT VOLKSWAGEN AG 2017
Share of environmental protection areas in percent
BUSINESS DEVELOPMENT RISKS AND OPPORTUNITIES AT VOLKSWAGEN AG
The business development of Volkswagen AG is exposed to essentially the same risks and opportunities as the Volkswagen Group. These risks and opportunities are explained in the Report on Risks and Opportunities.
RISKS ARISING FROM FINANCIAL INSTRUMENTS
Risks for Volkswagen AG arising from the use of financial instruments are the same as those to which the Volkswagen Group is exposed. An explanation of these risks can be found in the “Financial risks” chapter.
DEPENDENT COMPANY REPORT
The Board of Management of Volkswagen AG has submitted to the Supervisory Board the report required by section 312 of the AktG and issued the following concluding declaration:
“We declare that, based on the circumstances known to us at the time when the transactions with affiliated companies within the meaning of section 312 of the German Stock Corporation Act (AktG) were entered into, our Company received appropriate consideration for each transaction. No transactions with third parties or measures were either undertaken or omitted on the instructions of or in the interests of Porsche or other affiliated companies in the reporting period.”
The Annual Financial Statements of Volkswagen AG (in accordance with the HGB) can be accessed from the electronic companies register at www.unternehmensregister.de.