Opportunities and risks from mergers and acquisitions and/or other strategic partnerships/investments

The most significant risks from the regular GRC process and QRP are linked to the cooperation with other partners.

Opportunities and risks from partnerships

As part of our future program TOGETHER 2025+, we are stepping up our efforts to forge collaborations, both for the transformation of our core business and for the establishment of the new mobility solutions business.

In the area of battery cells, possible risks could arise from potential disagreement with our partners, possible delays in battery cell development, or delayed battery cell production.

With the marketing of the Modular Electric Drive Toolkit to third parties, as is conceivable as part of the strategic alliance with Ford, for example, damage claims could arise in the event of problems with procurement, production and quality.

By entering into partnerships at a local level, we aim to identify regional customer needs more precisely, establish competitive cost structures and thus develop and offer market-driven products. Going forward, we will concentrate to a greater extent than previously on partnerships, acquisitions and venture capital investments. This will enable us to generate maximum value for the Group and its brands and to expand our expertise, particularly in new areas of business. At the same time, there is a risk that the interests of business partners differ from our own. Volkswagen owns a large number of patents and other industrial property rights and copyrights. Partnerships can lead to patent and licensing infringements and thus to the unauthorized disclosure of company-specific expertise. Volkswagen monitors the sales markets and also protects its expertise with legal action.

Risks arising from the recoverability of goodwill or brand names

Volkswagen tests at least once a year on the basis of underlying cash-generating units, if the value of the goodwill or the brand names has been impaired. If there are objective indications that the recoverable amount of the asset concerned is lower than the carrying amount, then Volkswagen recognizes this as a non-cash impairment. An impairment can be caused, among other things, by an increase in interest rates or deteriorating business prospects.

Risks from the disposal of equity investments

An unexpected need for funding, for example in connection with the diesel issue, may lead to assets having to be sold for an amount not equivalent to their value.