VW CFO: EV Margins Still Lag ICE; SSP Platform May Launch by 2030 to Boost Profitability

Volkswagen Group CFO Arno Antlitz stated during an earnings call that electric vehicles (EVs) still have significantly lower profit margins compared to internal combustion engine (ICE) vehicles. He noted that EV profitability is unlikely to match that of ICE vehicles until the next-generation Scalable Systems Platform (SSP) enters production. The SSP will replace Volkswagen’s current MEB and PPE EV platforms, originally slated for debut this year but now expected to launch before 2030. Volkswagen aims for the SSP to reduce production costs by 20% compared to the MEB platform. Antlitz added that the company has already made progress in improving EV profitability. For example, updated MEB Plus platform models now use lower-cost lithium iron phosphate (LFP) batteries and cell-to-pack battery structures, which have helped mitigate margin dilution. As an illustration, the ID.2 Cross achieves a profit margin of approximately 70% to 80% relative to its ICE counterpart. Volkswagen Group CEO Oliver Blume previously set a target to raise the group’s overall operating margin to 8%–10% by 2030, emphasizing that this goal hinges on strict cost and investment discipline. However, the automaker has faced market pressures in recent years, with sales declining by 10% in North America and 8% in China in 2025. During the call, Blume projected that the group’s full-year operating margin for 2026 would range between 4% and 5.5%, up from 2.8% in 2025.