On July 27, German carmaker Volkswagen said it expected to deliver between 9 million and 9.5 million vehicles this year due to the uncertain economic situation, down from its previous target of 9.5 million.。

The company added that its 2023 financial target remained unchanged and said it would compensate for the drop in deliveries through higher pricing and improved productivity.。

Volkswagen said the company's supply of key components such as semiconductors improved, but transportation and logistics delays put pressure on it in the first half of the year.。As VW raises prices and cuts costs, the company hopes to improve cash flow in the second half of the year。However, the company expects vehicle delivery wait times to be significantly shorter in the second half of the year, and said demand is stable and its orders have reached 1.65 million vehicles.。

Volkswagen's outlook for the full year contrasts sharply with that of other European carmakers。

Mercedes-Benz raised its full-year group earnings forecast, while French carmaker Renault reported strong profit margins due to higher new car prices and cost cuts.。The results revealed by Strantis this week also beat expectations.。

Volkswagen's second-quarter adjusted operating profit of 5.6 billion euros fell short of analyst expectations。Between April and June, the Volkswagen Group delivered 2.3 million vehicles worldwide, up 18 percent from a year earlier.。

Core brands such as Volkswagen Passenger Cars, Volkswagen Commercial Vehicles, Seat, Skoda and Cupra posted operating margins of 5% in the first half of the year..About 5%。Brands such as Audi, Lamborghini, Bentley and Ducati made about 10% of their operating profit.。

Chief Financial Officer Arno Antlitz said: "In the first half of the year, we achieved solid financial results and took significant steps to improve our competitiveness.。The second half of the year is focused on strengthening net cash flow。"

VW, which still plans to limit its full-year net cash flow to between €6bn and €8bn, said it had taken steps to ensure it reached the lower end of that range after reporting weak figures of €2.5bn in the first half of the year.。

All of Volkswagen's brands are currently engaged in so-called performance plans, such as Volkswagen's commitment to increase by about 10 billion euros by 2026.。

Holding hands with Xiaopeng: Reaching a long-term strategic partnership

On the evening of July 26, the Volkswagen Group announced that the Volkswagen brand and Xiaopeng, as well as the Audi brand and SAIC, had reached strategic cooperation.。These two cooperation, the most eye-catching is the public and Xiaopeng "hand in hand."。

According to Xiaopeng's official public number, the two companies signed a framework agreement on strategic technical cooperation, while the Volkswagen Group signed a share purchase agreement for a strategic minority stake in Xiaopeng.。

Specifically, Xiaopeng Motors will issue approximately $15 per ADS to the Volkswagen Group after the completion of the transaction..99% of Class A common stock with a total value of approximately $700 million。

In terms of strategic technical cooperation, Xiaopeng and Volkswagen will jointly develop two B-class electric vehicle models based on their core competitiveness and Xiaopeng's G9 model platform, smart cockpit and advanced assisted driving system software.。Related models are expected to start production in 2026。

In addition, the two sides will explore other potential strategic cooperation in a number of areas, including future electric vehicle platform, software technology and supply chain cooperation.。

After the news was released, both Hong Kong and U.S. stocks of Xiaopeng Motors surged today。Among them, Xiaopeng Auto-W's share price rose 33% today to close at HK $81.。It is worth noting that Xiaopeng's share price has doubled in the past six months。

For this cooperation, He Xiaopeng, Chairman and CEO of Xiaopeng Motors, said that the highly complementary advantages of Volkswagen Group and Xiaopeng Motors are the basis for the long-term strategic cooperation between the two sides.。"I look forward to the" big "and" small "hand in hand, the best technology, the best products, the best brand to the world."。

Ralf Brandstaetter, Chairman and CEO of Volkswagen Group (China), said: "Together with Xiaopeng, we have another strong partner in key technology areas in China.。"

In another collaboration, Audi said it would expand its partnership with SAIC to produce luxury electric vehicles for the Chinese market.。The two companies plan to develop a new platform for high-end electric vehicles, but did not disclose further details.。

Including Xiaopeng's stake, Volkswagen has invested nearly 5 billion euros in China this year alone。Volkswagen now has four carmaker partners in China, namely FAW, SAIC, JAC and Xiaopeng。

The two deals come as Volkswagen has seen a drop in sales in China, one of the company's most important markets。In the first half of the year, the company's electric vehicle sales in China increased by 20%, but overall sales declined。This side highlights the fierce competition in the domestic auto industry, so that the global auto giants who have been working in China for many years are a bit "unbearable."。Public data show that BYD (excluding Tengshi) overtook Volkswagen in the first quarter, with BYD selling more than 440,000 vehicles in China in the first quarter, while the Volkswagen brand's total sales in China over the same period were 42.70,000 vehicles。

After understanding that electrification is an irreversible trend in the automotive industry, Volkswagen has been working hard to expand its electrification scale。The company said in March that it plans to invest nearly $200 billion in electrification between 2023 and 2027 as electric vehicle deliveries increase.。