VDL Nedcar is undergoing a transition from an independent car manufacturer to a broader partner in sustainable e-mobility.
After a somewhat hesitant start, the year 2022 has mainly been a year of great growth for VDL Groep. Despite uncertain geopolitical conditions and external challenges due to shortages of employees and materials and partly due to rising costs, three of the four divisions have shown double-digit sales growth. The fourth division has risen slightly. The result also shows growth. Because the order book (excluding the Car Assembly division) remains at a high level, 2023 will again be dominated by organizing growth.
The combined annual turnover in 2022 amounted to 5,752 billion euros, an increase of 16 percent compared to the annual turnover in 2021 (4,995 billion euros). The net result has grown from 225 million euros in 2021 to 298 million euros in 2022, of which 122 million euros incidental and 176 million euros operational.
“A fine example of strength through the cooperation of our employees is, of course, that our VDL companies, despite challenging external circumstances, have been able to achieve substantial growth in turnover. Three of the four divisions, Supplies, Buses and Finished Products, together grew by no less than 26 percent in the past year."
According to Van der Leegte, the fact that turnover at the fourth division, Car Assembly, has grown slightly (2 percent), while at VDL Nedcar a quarter of the production days had to be canceled mainly due to material shortages, is an excellent achievement by the employees in Born. “The overall growth of 2022 is confirmation that our strong and long-standing investments in innovation are clearly paying off. We are well positioned in our five growth markets, Science, Technology & Health, Mobility, Energy & Sustainability, Infratech and Foodtech, to continue to provide added value to our customers. In complex circumstances, the past year was largely devoted to organizing that growth.”
car assembly
The turnover of the Car Assembly division grew slightly in 2022: from 2,051 billion euros in 2021 to 2,085 billion euros in 2022 (an increase of 2 percent). The fact that production at VDL Nedcar was forced to be canceled in a quarter of the cases, mainly due to material shortages, had a major impact. Nevertheless, the total production volume of VDL Nedcar in 2022, thanks to the flexibility of the employees, will amount to 101.672 vehicles.
In recent years, land has been purchased and permit processes have been completed to transfer these broad activities to VDL Nedcar in Born.
That process has not been facilitated by current developments in the automotive industry, such as the Russian invasion of Ukraine and protectionist measures, such as the Inflation Reduction Act. Developments that have played a disruptive role in the choice of OEMs for their production locations. As a result, new entrants to the global passenger car market who want to make the move to Europe have reconsidered their priorities.
On the other hand, VDL Nedcar is in talks with various potential clients for the serial production of cars and is also focusing on other automotive-related activities.
Meanwhile, VDL Nedcar is undergoing a transition from an independent car manufacturer to a broader partner in sustainable e-mobility, with the aim of more added value and better future-proofing. The broadening of activities at VDL Nedcar in Born is visible in three areas: the assembly of vehicles for various clients, various sustainable mobility solutions in the Mobility Innovation Centre and facilitating the growth strategy of VDL sister companies that, like VDL Nedcar, are active in mobility.
bus division
The turnover of the Buses division increased by 2022 percent in 18, from 384 million euros in 2021 to 454 million euros in 2022. This is mainly due to a further increase in the turnover of public transport buses. The general tendency among coach operators is that 2022 has been a very decent year. In 2022, sales and deliveries for VDL Bus & Coach will have moved in line with market developments. There has been a focus on reducing stock.
VDL Bus & Coach has been able to resume production during the economic downturn through orders for coaches for regulated transport, which has been less affected by the consequences of the corona pandemic. In 2022, VDL Bus & Coach will continue to be a leading transition partner on the road to zero-emission public transport. VDL Citea Electrics were delivered in Germany, Italy, Iceland, Luxembourg, Norway and in the home markets of the Netherlands and Belgium, among others.
Despite all the turbulence in the global automotive industry, we remain optimistic about the long-term prospects of VDL Nedcar and the associated employment opportunities in Born. VDL Nedcar has proven its ability to adopt a flexible attitude for clients and to respond to the dynamics of the sector.
The growth of 2022 is expected to continue in 2023 at VDL Groep. The forecasted growth of the industrial family business with its head office in Eindhoven is estimated at 5 to 10 percent for the entire year. As a result, annual turnover is expected to exceed 6 billion euros this year. VDL Groep's investment agenda for the current year is even more ambitious than that of the past year. The more than 100 VDL operating companies are expected to invest a total of approximately 2023 million euros in buildings and other operating assets by 300.
Brainport region Eindhoven, home base of VDL Groep, is also growing fast and is on its way to becoming the country's most important economic growth engine. Everyone who wants to contribute to this should be given the opportunity to do so. In addition, sufficient attention must be paid to the preconditions that must be in order to facilitate this growth: the region must be accessible, there must be room for affordable housing in an attractive residential, living and business climate, there must be sufficient talent must be available and the energy network congestion must be resolved.
Source: VDL News – VDL TBP Electronics
