VDL’s bus division is loss-making

Dutch industrial group VDL has seen turnover from its bus division fall 40% in the first six months, from 251 million euros a year ago to 153 million euros at the end of June. This is shown in the group’s income statement.

The division is also loss-making, but for how much VDL does not share. The group also has a bus plant in the Belgian Roeselare. However, the VDL Nedcar car plant in Born in the Dutch province of Limburg will see some 1 800 jobs disappear from November.

‘Entire industry is struggling’

As an explanation for the falling turnover, the group refers to “challenges in supply chains, making vehicle deliveries difficult”. According to VDL, the entire industry is struggling with these problems. Noticeably, with 242 electric buses registered, VDL Bus & Coach, the group’s division, remained the European market leader in the first half of 2022.

VDL Groep as a whole did see its turnover rise in the first six months by 22% to 3,2 billion euros. Last year’s chip shortages for the car plant VDL Redcar in Born are now off the table, and the plant was able to produce much more.

Net profit was down though (-22% to 43 million euros), due to provisions for the planned restructuring at Redcar. From November, 1 800 jobs would disappear as BMW withdraws as a customer of the assembly line.

Without the provision for Redcar, VDL did see its operational result improve by 44% compared to the first half of last year, to 78 million euros. For the whole of 2023, VDL Groep expects turnover to be 5 to 10% higher than last year. Profit would then be lower again than in 2022 due to circumstances at VDL Redcar and at the bus division.

Present at Busworld 2023

VDL Bus & Coach will also be present next month at Busworld 2023, Europe’s largest bus & coach trade fair. That is scheduled from 7 to 12 October in Brussels. With 511 exhibitors, it is “the biggest international commercial platform for the bus and coach sector”.

VLD’s buses are exported to some 30 countries. Early this year, VLD missed out on a large order for 500 electric articulated buses for De Lijn. The order was eventually won by Italian manufacturer Iveco. VDL did manage to secure a smaller order for 75 e-buses.


Ready to join the conversation?

You must be an active subscriber to leave a comment.

Subscribe Today

You Might Also Like

%d bloggers like this: