Since the end of last year's ordinary AGM, the supervisory board, there have been changes in its composition. The labor side representatives on the supervisory board of the Volkswagen AG, Overhooq, has resigned with effect of 8th February 2019. The Registrar Court Brunswick pursuant to Section 104 Stock Corporation Act has appointed as its successor with effect on the 21st February, 2019, Mr. Werner Verich, as member of the Supervisory Board of Volkswagen Aksingegev. Mr.
Verich is Chairman of the General and the group's working counsel of Porsche AG. We're looking forward to working with him. Mr. Hook, who's left the supervisory board, I'd like to thank him on behalf of all supervisory board members for the good cooperation. Pursuant to Section 11 Subsection 2 of the articles of association of Frosjang Nakhsenkasecha, in addition, the term of office of the members of the Supervisory Board ends and this applies to Doctor.
Hesa Sotan Al Jaber and Doctor. Hans Michel Pirsch and Doctor. Ferdinand Oliver Porsche. The term of office ends with the end of today's ordinary annual general meeting. As you can see from the agenda, the supervisory board proposes to this annual general meeting with effect of the end of this ordinary AGM on this day, the following persons to be appointed, Ms.
Doctor. Hesse Sotan Aljabem, Doctor. Hans Michael Pysh and Doctor. Ferdinand the Annual General Meeting to decide on the approval of the act of management for fiscal 20 2023 into the supervisory board. The supervisory board has asked Doctor.
Al Jaber, Doctor. Pich and Doctor. Porsche that they have the time to sufficiently contribute to the work of the Supervisory Board. Doctor. Hans Michel Pich is the greatest shareholder of Volkswagen acting as aircraft and due to his long standing experience for different other companies within the Volkswagen Group has special experience and knowledge in the business fields of this company, which according to the conviction of the supervisory board will in the future also be available in the interest and to the benefit of this company.
The supervisory board for this reason has resolved after long deliberations and detailed discussions to propose Doctor. Michel Peich for reelection to the supervisory board, although he has reached the age limit of 75 years stipulated in the rules of procedure. In the annex to the agenda, you'll find the CVs of Doctor. Ajaberg, Doctor. Pyshe and Doctor.
Porsche are next and the proposals and explanations on the proposals for reelections all have already declared that they accept the appointment to their office. In the case, you should resolve to do this. So much on the changes of the conversation of the Supervisory Board. Ladies and gentlemen, as already mentioned, fiscal 2018 for the Volkswagen Group and the Supervisory Board was characterized by the further development of the management structure. The diesel resolution was another area of focus.
Exceeding this, the Supervisory Board looked into the implementation of the electro campaign, the electrification of the fleet, the digitalization and the implementation of new business models. Regularly during this fiscal year, the supervisory board intensively looked into the situation and development of the company corresponding to the mandate which encoms us following the law, the rules of procedure and our articles of association, we regularly monitored and supported the Board of Management in operations and questions of management of this group. We, of course took into account the recommendations of the German Corporate Governance Codex. For all decisions that were of great significance for the group, we, the supervisory board, have been consulted. In addition, we discussed strategic matters with the Board of Management.
Considering the upheaval of our automotive industry, the past fiscal year had particular significance, particularly since the transformation of Volkswagen and the entire motor industry is in a phase of growing risks from the economic national economic development and political uncertainty. Let me just mention the trade dispute between the great economies of the U. S. And China and the still unresolved topic of the Brexit and the ever more pressing carbon emissions regulation, not only in Europe. This requires an unknown measure of flexibility from companies and their management, particularly in strategic matters.
It is expedient to permanently and critically ask how to realign your own position and the strategic direction the company takes. We're faced with a huge challenge not only to master the system change towards electromobility with its manifold repercussions, But concomitantly, we must also prepare the next wave of transformation, the digitalization and in conjunction with this, the stronger development towards a company for which software in the future will be a central linchpin factor. Both requires massive investments. The Supervisory Board in this conjunction must also take great care to provide the necessary resources for the implementation of the strategic decisions to be implemented. The Volkswagen Group continues to have at its disposal tremendous financial clout as you can read in our management report.
And we are boldly and decisively using it to secure our competitiveness and our ability to master the future. For instance, to implement our electrification campaign, we have provided funds and opened this avenue. However, our funds are not unlimited and therefore we must prioritize and consider carefully. And these far reaching decisions have to be taken with circumspection in this insecure and uncertain environment. It is not about our strategy and the financing of its implementation alone, but last and not least, it is about matters of leadership, the employees and the organization, matters which are of great significance and impact for the enterprise as a whole.
Such decisions must be intensively prepared with circumspection and sometimes there is intensive deliberation needed to have all parties on board and supporting these important decisions. This applies for the Board of Management and the Supervisory Board just as for the discussions between the Board of Management and the Supervisory Board. I believe I can speak on behalf of my colleagues and for myself, of course, in saying that these discussions have been led with all seriousness and bearing in mind how serious the decisions are. And I'm sure we all have the best possible result for the Volkswagen Group in mind in doing this. We have an extensive culture within this Volkswagen company of constructive discussions only if we honestly look into all matters here will we have the quality and also the reliability of these decisions, which we need to lay the foundation for this dynamic change, which we need in the Volkswagen Group.
Ladies and gentlemen, this change is happening and the supervisory board regularly is updated on it.
The Board of Management regularly and comprehensively informs us in writing or in person on all matters of relevance to the company relating to its strategy, the business development and the company's planning and position. This also includes the risk situation and risk management. In this respect, the Board of Management also informed the supervisory board of further improvements to the risk and compliance management system. In addition, the supervisory board received information about compliance related topics and other issues by the Board of Management on an ongoing basis. In all cases, we received the documents relevant to our decisions in good time for our meetings.
And what's more is that we received a detailed report from the Board of Management on the current business position and the forecast for the current year. Any deviations in performance from the plans and targets previously drawn up were explained in detail by the Board of Management, either in person or in writing. Together with the Board of Management, the reasons for these deviations and try to derive countermeasures at the meetings of the special committee on diesel engines. The Board of Management represented regular reports on current developments in connection with the diesel issues. In addition, the Chairman of the Supervisory Board consulted with the Chairman of the Board Management at regular intervals between meetings to discuss important current issues.
Apart from the diesel issue, they included the Volkswagen Group's strategy and planning, its business development and the risk situation at risk management, including the questions concerning integrity and compliance of the Volkswagen Group. But the supervisory board did not only have a regular exchange with the Board of Management, but it also actively participated in the dialogue with our stakeholders. For example, as envisaged by the German corporate governance codex, I also had a lot of discussions with investors about topics concerning the supervisory board. So the supervisory board held a total of 14 meetings in fiscal year 2018 and the average attendance rate amounted to 90%. In addition to that, particularly urgent matters were discussed in writing or by using electronic means of communication.
All the members of the supervisory board participated in more than half of the meetings of the supervisory board and the committees that they are members of. During the last fiscal year, 4 out of the 5 committees of the supervisory board met. The executive committee held 13 meetings in total. The nomination committee met once. The audit committee held 5 meetings in the course of last year and the special committee on diesel engines held 4 sessions.
The great number of meetings of the supervisory board and its committees goes to show that the supervisory board intensively supervised and consulted the Board of Management also throughout the fiscal year 2018. The mediation committee did not have to be convened at all in the year 2018. You will find a detailed description of the meetings of the supervisory board and its committees in the annual report on pages 12 to 17. Ladies and gentlemen, the Board of Management and the Supervisory Board issued their annual declaration on the 16th November 2018 according to PERA 161 Stock Corporation Act on the recommendations of the German Corporate Governance Code, an explanation of all the deviations compared to this compliance declaration can be read up in this declaration. The compliance declaration can also be found on the website of the Volkswagen Aksdien Gesellschaft.
Additional information on the corporate governance of the company and the implementation of the recommendations and ideas of the German Corporate Governance Code can also be found in our corporate governance report. This can be found on Page 59 and following in our annual report. The report submitted by the Board of Management on the relationship to affiliated companies was approved and audited by the auditor of PricewaterhouseCooper. The supervisory board also reviewed this report and approved the results of the auditor. The supervisory board mandated PricewaterhouseCooper also to audit the comprehensive special non financial report for the fiscal year 2018.
This report is based on the corporate social responsibility directive of the the European Union. It is the overarching objective of this target and the report to bring about more transparency on ecological and social aspects of companies within the EU. Upon completion of its own examination, the Supervisory Board approved of the results submitted to it by PricewaterhouseCooper on the combined special non financial report 2018 and raised no objections. I would also like to draw your attention to the report on the supervisory board. As mentioned before, you will find it on Page 12 following within the annual report.
Dear shareholders, the members of the Board of Management received a total remuneration according to the German commercial code amounting to a total of €50,300,000 The approach for the remuneration of the Board of Management decided 1, 2 years ago during the ordinary general shareholder meeting in 2017 has not been changed ever since. Ladies and gentlemen, let me draw your attention to the diesel issue, which has kept us very busy also during the last fiscal year. We put a very strong focus on optimizing our structures and processes in such a way that comparable incidents cannot happen anymore. This is why we intensively try to make sure and make a major effort in order to bring about integrity and compliance as a main guideline for all our activities within the Volkswagen Group. Furthermore, we are very happy about the fact that we have managed to meet tremendous challenges in the course of last year with regard to the diesel issue.
In June 2018, against the Volkswagen AG, due to the ongoing administrative fine proceeding, an administrative fine order was issued by the public prosecutor and Brunswick amounting to EUR 1,000,000,000 and that the proceedings were terminated. Volkswagen accepted the fine and decided not to seek any legal remedy. In October 28, the public prosecutor in Munich issued an administrative fine order against Audi Igi amounting to €800,000,000 Audi also accepted the fine order and refused to lodge an appeal. A couple of days ago, the public prosecutors in Stuttgart issued an administrative fine against Porsche AG amounting to €535,000,000 Also Porsche AG decided to accept the fine and did not seek any legal remedy. Thus, all the so called NOX proceedings against members of the group have been concluded.
The Board of Management of Volkswagen Aptzing Gesellschaft and Audi Aptzing Gesellschaft and Porsche AG had to design take a final decision on the fine orders. And all the members of the Board of Management decided that despite the major financial repercussions that these fines had, it was in the interest of the company to accept the administrative fine orders. In this particular fashion, we managed to terminate all the annex proceedings against Volkswagen AG, Audi and Porsche, and we have thus again managed to restore legal certainty. This was particularly important because we wanted to show that the Volkswagen Group adopts its responsibility in this regard. The supervisory board concerned itself with the administrative fine orders issued against Volkswagen AG and Audi.
The administrative fine orders were rather painful for us. There is no doubt about it. But also based on the evaluation of the supervisory board, the termination of the proceedings and the legal certainty restored in this particular fashion were compelling reasons to agree on these administrative fine orders in order to restore legal certainty and this was also a reason not to lodge an appeal. Ladies and gentlemen, as you might know, the Society For Perception of Society's holders in Germany applied for a special order to be appointed by court after the ordinary general shareholders meeting in 2016. The district court in Hannaford decided that the preconditions for such employment would not be applicable and therefore the high regional court of sale decided to appoint such a special auditor in November 2017.
We hold the view that the decision of the High court in SELO was incorrect, and this is why we tried to launch an appeal. A final decision is thus still pending. The appointment of the special auditor did not happen and the auditor did not take any action. And that is why the DSW decided to replace this special auditor, but this request has not yet been decided upon. We hold the view that such a replacement of the special auditor is not possible, and therefore, the request of the DSW is inadmissible and ungrounded.
We think that a special audit is inappropriate and meaningless. The development of the diesel issue is comprehensively being dealt with in the course of comprehensive and intensive investigations within the group. In addition to that, Volkswagen is very strongly supervised by the compliance monitor appointed by the American DoD. In addition to that, the public prosecutors in Brunswick and Munich are carrying out comprehensive investigations. This has led to tremendous costs and an intensive burden on us on a daily basis.
An additional investigation by a special auditor would lead to additional costs and even more tremendous burdens, but it would not help us acquire more knowledge. Ladies and gentlemen, the investigation of potential claims for compensations against former and current members of the board are still going on. We take these investigations rather seriously and we always receive comprehensive information of the ongoing proceedings by the law firm, Gleislut and Professor Goethe, the former Chairman of the 2nd Civil Senate of the Federal Supreme Court responsible for corporate law. Our investigation only and exclusively focuses on the interest of the company. But the usual issue is one of the most comprehensive and intensive investigations ever in the German industrial history.
Several German law firms are involved with hundreds of experts and operational support of Deloitte. They are doing a lot of comprehensive researches in various different databases. The world over, at 10,000 employees, approximately 30 4,000 electronic data carried, including desks, mobile phones and sticks, were seized. The databases in Germany and the U. S.
Alone consist of more than 250,000,000 documents. In addition to that, more than 1,000 interviews were conducted. Ladies and gentlemen, the public Of course, the indictment is available to our external lawyers and will be analyzed comprehensively. The indictment according to the information that we received from our lawyers do not contain any facts that have not yet been covered in our own investigations. But the indictment contains deviating legal appraisals and conclusions.
Irrespective of that, we will consider the results of the proceedings and new aspects that will be brought about in the course of the investigation. By the way, the investigations of the public of the supervisory board is being carried out independently from the courts and the public prosecutors. We try to examine everything unreservedly irrespective of the persons, But it is also important to note that Mr. Winterkorn and all the other persons accused are subjected to the principle of the presumption of innocence. On the monitor, the compliance monitor, Larry Thompson, has been with us for almost 2 years.
With his team, he's very active in analyzing, monitoring and supporting the entire company and the transformation processes. According to plan, the man of monitorship will end in a little more than a year. The monitor issues very valuable pieces of recommendations and tells us about what needs to be done from his particular angle. We expect his 2nd annual report to be submitted to us in summer, within which he will summarize last year. At the end of ship, the monitor will have to decide whether he can attest that our compliance and ethics program is appropriate.
We are doing everything in our power and we leave no stone unturned and make this to our utmost priority to see to it that we will be given this attestation. This of course includes our culture of integrity throughout the entire group, which needs to be deeply rooted and filled with life. Several different transformation changes have already been brought about, which are very visible and very tangible. I myself can see that topics are being discussed at a much earlier state and much more openly than ever before. Integrity and compliance are the very foundation of all the activities of the Board of Management and the Supervisory Board.
All the members of the Board of Management and Supervisory Board live these values and try to see to it that they become integral parts and parcels of our corporate culture and will continue to stay that way. With our group wide umbrella program together for integrity, with all these different concepts, we try to reach out to all the executives and employees the world over. Employees from all the different business areas actively work as integrity ambassadors. At the plant in Volsberg alone, there are 220 of them. They have a regular exchange on experience concerning integrity on a regular basis and discuss these topics in their departments.
In legal development, golden rules were introduced, which provide for a stricter control in the field of approval and product development. In addition to that, we've set in place and modernized our whistleblower system. The hotline is now available in more than 51 countries 20 fourseven. Our executives need to take on very special responsibility. They've got to live integrity and compliance and create awareness for this in their teams in order to make it possible for each and everyone to live the principle of integrity.
With all our challenges and transformation processes, we put a very strong focus on our corporate culture. Of course, we are subjected to pressure in the field of competition and innovation, but we try to see to it if that integrity and compliance will not be neglected, but will be considered to be equally significant. During the last year of his monitorship, Larry Thompson will provide us with important new ideas. The supervisory board observes the work of Larry Thompson and his team very closely. I think the discussion with him is extremely effective and productive, and I would like to thank him most cordially for his valuable contributions.
It is our objective to see to it that the monitorship is considered to be a successful milestone in coming to terms with the diesel issue. That's what we're working on on a daily basis. Ladies and gentlemen, the Board of Management and the Supervisory Board independently from each other reviewed and discussed the motions for resolutions to be submitted to you in the General Shareholders Meeting to approve the actions of the members of the Board of Management and the Supervisory Board for the fiscal year 2018. In this regard, the law firm, Gleis Lutz, provided a lot of consultancy. Professor Gutter, the former Chairman of the 2nd civil senate of the Federal Supreme Court responsible for corporate law, were approved of.
The supervisory board decided to propose the general shareholders' meetings to postpone the approval of the actions of the member of the board, Rupert Schlaader, due to the pending investigation on the diesel issue. And all the other members of the Board of Management are to be given approval for their actions in the fiscal year 2018. In this particular fashion, we would like to express our confidence and trust in the actions of the Board of Management. In addition to that, the supervisory board decided to propose the approval of the actions of all the other members of the supervisory board. Of course, there were also some changes within the composition of the Board of Management.
We already informed you about the appointment of Doctor. Oliver Blum and the change of Matthias Muller and the appointment of Doctor. Herbert Diess and the replacement of Doctor. Karl Heinz blessing by Gouna Killian is something I informed you about already last year and I also informed you about the fact that Doctor. Garcia Sands has left the company.
The successor of Doctor. Garcia Sands in the field of components and procurement will be Doctor. Stefan Zama with effect of the 1st September 2018. With effect of the 2nd October 2018, Hooperstadler has left the Board of Management of the Volkswagen AG and Audi AG. His successor is a member of the Board of Volkswagen AG and as a Chairman of the Board of Management of Audi AG with effect of January 1, 2019, with Abraham Schott.
Mr. Schott in the group board of management is now responsible for the Brand Group Premium. Since June 19, 2018, he also participated in as a guest in the meetings of the Board of Management of Volkswagen AG. On the 10th January 2019, Professor Doctor. Heitzmann retired from the Board of Management of Volkswagen AG.
Within the group board the Chinese market. On behalf of the supervisory board, I would like to thank all the members of the board and the supervisory board members who left for their commitments and the excellent results that were achieved. Ladies and gentlemen, thank you very much for your attention. So far now, I would like to ask Doctor. Diess to take the floor and present the report of the Board of Management to us.
Thank you very much.
Shareholders, ladies and gentlemen, on behalf of the entire Board of Management, I would like to bid you a very warm welcome to the Annual General Meeting of Volkswagen AG. Thank you for coming to Berlin today so that you can gain a personal impression of your company's business activities and prospects. In a nutshell, the outlook for the future of the Volkswagen Group is good. Our core product, the automobile, is and remains a key economic and technological pacesetter. It continues to create innovation, growth and prosperity in numerous regions the world over and it keeps society mobile.
At the same time, the car is undergoing a fundamental transformation towards electric mobility to digitally connected and in the long term to autonomous driving. All that makes our product even more technologically sophisticated and demanding and it lends it new qualities. The car will be cleaner, much safer and much more comfortable than it is today. And what's more, it will remain emotional and fascinating, strong and aspirational brands will still be vital in the future for the purchase decision that our customers make for a car. We at Volkswagen believes this transformation harbors a huge opportunity and we intend to seize these opportunities with a very clear plan for 0 emission driving for connecting and digitizing our vehicles and for new services.
We are more resolved than our competition in shaping the future and driving the change. The foundation for all this is a successful and robust business for the Volkswagen Group. 2018 was a good year with new all time highs in our operating activities and it was a year in which we took some important strategic decisions. For fiscal 2018, however, we must say that the diesel crisis was part of things once again. It is and remains a major watershed.
So far, it has cost us some €30,000,000,000 Yet the crisis also marked the beginning of our group's fundamental realignment in terms of technology, personnel and our culture. We have a sound foundation as we head into the future with 12 strong brands for all segments and customer wishes. With a network of developers and experts who day in, day out turn in top notch technological performance with the motivated employees at our plants and with the sales team that is at home in all regions of the world and not only know our customers, but also take them seriously. And this is why in 2018, we developed better than the competition did. 10,800,000 vehicles were delivered to customers in fiscal 2018.
Our brands launched more than 70 new models. Our sales revenue rose by 2.7 percent to €236,000,000,000 We grew our profit before special items to €17,100,000,000 and our return on sales was 7.3%, which was at the upper end of our target range. And that makes us one of the few automotive companies that was able to meet its annual forecasts. So the bottom line is that we improved our group's earnings after tax to €12,200,000,000 The Board of Management and the Supervisory Board, therefore, proposed to the AGM an increase in the dividend €4.80 per ordinary share and €4.8 6 per preferred share, which means that we intend to distribute a total of €2,400,000,000 to you, which is a payout ratio of 20.4%. Our stock price last year followed the decreasing market trend.
The peak for the ordinary share was €188, and the preferred share peaked at €188.50 Currently, the ordinary share price is €150.30 and the preferred share is at €148.60 As a result, our conviction is that your company is still undervalued. We see there's plenty of potential to increase the company's valuation, and we intend to leverage that potential step by step. Ladies and gentlemen, 2018 was characterized by new regulatory requirements, including more demanding test cycles. In addition to that, we faced growing geopolitical uncertainties such as in China or in the UK. And nevertheless, our business proved to be robust and resilient.
This success was achieved by our brands and regions, thanks to a strong team effort. They're all working to make the group more viable for the future and to enhance its performance. In nearly all areas, we were able to achieve improvements. And I would like to take this opportunity to congratulate our teams on that. Yes, I think they do deserve a hand.
Volkswagen, our core brand, posted new records for unit sales and sales revenue, thanks amongst other things to many new products. The new version of the Touareg has been very well received. The brand's flagship SUV boasts impressive technology, design and performance. For its size, the vehicle is very easy to handle and emphasizes our commitment to high quality innovative and dynamic vehicles. Tiguan still is also exceptionally successful.
It is a vehicle that has sold just under 800,000 units. It's definitely become a global success. And in China now, it wins over customers under the Tehran name, the T Roc and the new T Cross expand our ex UV portfolio at the lower end that is into the golf and polo class. And the Passat II still plays a key role for us. If you include all local variants and derivatives, around 1,500,000 vehicles were sold last year, making it the world's highest volume sedan.
In terms of productivity and efficiency, the brand has enhanced its competitiveness in the past few years. However, we still have great potential for improvement when it comes to lean administration and efficient production. Our pact for the future has already given us some initial success, and we now intend to systematically and rigorously build on that. Stora is continuing to grow and posted an operating return on sales of 8%. Following the success of the Kodiak, its smaller sibling, the Carac has also become a bestseller.
The recently launched Kamik rounds off our SUV range at the lower end. And thanks to great demand, STODA's plants are operating at more than 120 percent of capacity. And that's why we are planning to build an additional multi brand plant in Europe. We've conducted a thorough review of potential sites over the past few months and at yesterday's Supervisory Board meeting, the decision was made to begin specific and concrete negotiations on the new plant with the remaining potential sites. In addition to that, Skoda will begin assuming more responsibility in the group, for instance, for the development and production of the new generation of the Passat family.
Skoda will also be responsible for group activities in India. In the next few years, some €2,000,000,000 will be invested in new vehicles there that are designed specifically for the Indian market. So in other words, we are going to stay in this demanding growth market while some of the competition is withdrawing from it. The Siet team is proud of the most successful year in the history of the company. It increased deliveries by more than 10%, making SIET Europe's fastest growing brand.
It has already achieved a return on investment of more than 13%, which means that the return level is now acceptable. The return on investment will in the group in the future become our most important key economic indicator. SEAT attracts the youngest customers to the group with the Arona, the Atika and the Terraco, which is built in Wolfsburg. And as a result, Siet now has an attractive SUV portfolio. The brand assumes general group responsibilities too, such as in developing the North African markets and for our production site in Algeria.
For Audi, 2018 was a challenging year. They switched over to the new test cycles, temporarily restricted output and unit sales quite a bit. And also there was a change at the helm of the company, Bramshot. Audi's new CEO is also responsible for group sales management. The Audi team generated an operating profit before special items of €4,700,000,000 and an operating return on sales of 8%.
With the introduction of the Q3 and the Q8, Audi has once again sent out strong signals in terms of products. Another highlight is the all electric SUV. E Tron, the 1st electric car that meets the requirements of premium segment customers in every respect and once again lives up to Audi's value proposition of Forsbrundorff Technik. Backed up by a well filled product pipeline new all time highs. Its operating return on sales was 17.4%, which is the best in the group and in the entire automotive industry.
Oliver Blumet is responsible not just for the Porsche brand, he's also responsible for group production and recently also became responsible for group quality. He's preparing the selection of the location for the new multi brand plant that I just mentioned And the new 911, Porsche's brand icon, has been further improved in all of the features that make the 911 a 911. With up to 4 50 horsepower, the 8th generation is more powerful than ever before and comes with a high number of driver assistance systems. It boasts the world's first wet mode, which means the car detects water on the road, prepares its control systems and alerts the driver. Porsche is readying itself systematically to take the leap into electric mobility.
It has made the decision to withdraw from diesel engines. Today already more than 60% of European Panameras are e hybrids. And with the Taycan, Porsche is launching this year its first genuine all electric sports car. It will be the world's sportiest electric car. Lamborghini has launched the Urus, an extremely sporty SUV and has thus established a brand new segment, the super sport SUV.
With more than 2,500 units, the Urus has becoming the best selling Lamborghini at one stroke and is boosting the company's growth. All in all, the brand increased its deliveries last year by more than 50%. Bentley is making good progress with its turnaround after a difficult previous year. The team in crew once again in 2019 in Q1 generated a profit. Its bestseller, the Bentley Bentayga, is also an SUV.
And as of last year, it has been available as a hybrid version, which means that Bentley is taking its first step toward electrification of its product portfolio. Volkswagen Commercial Vehicles brand in 2018 posted the 2nd best result in its history. Its cooperation with Ford will in the future ensure the continued existence of the Amarok and open up new growth opportunities worldwide in the midsize pickup segment. And discussions about further projects with Ford are going well. The partnership will enable Volkswagen Commercial Vehicles to achieve economies of scale superior to those of competition.
And in addition to that, Volkswagen Commercial Vehicles is assuming responsibility for key issues of future at the group level. The Hanover plant will become the center of excellence for electrically powered commercial vehicles. And starting in 2022, the fully electric ID Buzz will be coming off the production line there. It's our new brand, Icon, the new version of its van. In addition to that, we are clustering group activities related to new mobility services such as Moa and robo taxis for fully autonomous driving in Hanover.
We have also clustered our heavy commercial vehicle activities and that was done in TRATON under the umbrella of Volkswagen AG, the market leader for trucks in Europe and Brazil. TRATON has been able to gain additional market share. Sales revenue across all brands rose by 6% to nearly €26,000,000,000 in 2018. Adjusted operating profit was up by about 13% to some €1,700,000,000 Profit in the Q1 of 2019 increased once again by nearly 22% year on year, which shows that with its strong brands of MAN, Scania and Volkswagen, Carminos, E. Onibus, Traton is on course to become a global champion.
We will continue to systematically pursue our plans for an IPO backed by approval from the supervisory board. The Board of Management resolved yesterday to go ahead with the planned IPO of TRATON SE. And subject to further market developments, it could be done before the summer break this year in 2019. Ladies and gentlemen, our global market initiative is founded on powerful platforms. We're rolling out our major group modular systems, the modular transfer system or MQB, the modular longitudinal system, the MLV and in the future, the modular electric drive system, the MEV, worldwide.
And they will enable our group brands to launch new models quickly and efficiently and benefit from jointly developed technologies that creates significant economies of scale at the group in development in material costs and in production. There's still plenty of potential to cut costs further here in the years to come, and we intend to tap into that. The NPV alone will grow to around 8,000,000 units a year. In particular, the fast growing SUV segment has recently proved to be a key driving force behind our success. 1 in every 4 models sold by the group worldwide is now an SUV.
However, the market share of SUVs in many regions is already about 50%. So we believe there's still a lot of further potential for growth for us. And here too, we are leveraging the advantages of our modular strategy. For example, last year, we launched the Volkswagen Touareg, the Audi Q8 and the Lamborghini Urus. And these models are all based on our MLB modular system, as is the case for the Audi Q7 and the Porsche Cayenne.
They're manufactured in our production network in Bratislava, Leipzig and Sikow. And we've also got the MQB A0, a superior modular system for small vehicles with which we can also hold our own in fiercely competitive markets. The MQB A0 enables top class technology at attractive prices. For example, the new Audi A1, the Polo and the T Cross. This modular system has been almost fully rolled out, for example, in India, China, Latin America and South Africa.
Then the MEB, here we're applying the modular system principle to the world of electrification. It will be the platform for by far the biggest group of electric vehicles in the world. The first car will be the Volkswagen ID. 3 to begin production this year and it will be followed in quick succession by models from the Audi, Skoda and Si brands. We're planning for a total in the first wave up to 2022 in the entire group of some 15 MEB models.
Possible applications range from compact cars to large sedans through to electrically powered vans. And emotional low volume vehicles are also conceivable. The more cars that are manufactured on the MEB, the cheaper they become. And that's why we are also opening this platform up to 3rd parties. Apart from our platforms, ladies and gentlemen, the Volkswagen Group's global footprint is one of its major strengths.
We have improved our position in most markets. This was done in the past fiscal year despite a tough market environment and intense competition. Europe remains the backbone of our business. 4,400,000 group brand vehicles were delivered, thus showing an increase of 1.2%. Then in China in 2018, the automotive market declined for the first time in 2 decades.
Nevertheless, with our joint venture partners, we were able to set a new all time high in deliveries. We increased our market share to 18.5%, making us by far the leader in the world's biggest automotive market. And we anticipate a pickup from the second half of the year onward as a result of the value added tax cut and our model initiative. And by 2020, we intend to double our range of SUV models, which are particularly important in China. Locally made e vehicles will further increase unit sales and for a young audience we presented at the auto show in Shanghai in April our new sub brand, Jetta.
Its high quality safety and emotionality appeal to China's rapidly growing middle class and expands our market coverage toward the bottom end for the Volkswagen brand. Then the North America region here, we're gradually making headway toward achieving a turnaround. We reduced our unit sales in Mexico by just over 15% by deliberately withdrawing from unprofitable segments. In contrast, we increased deliveries in the U. S.
By around 2%. With our new models such as the Atlas and the long wheel based version of the Tiguan, we've stabilized our market position and even expanded it. We're also making significant progress in South America, the new Polo, the T Cross and the Virtus, which have been developed for the region, are the benchmark in this market, we are on a growth trajectory in Brazil, where we increase unit sales by over 13%. Our restructuring is gaining traction. We're aim to locally produce vehicles tailored to market needs, which aim to locally produce vehicles tailored to market needs, which will help us get back into the black this year once again.
Ladies and gentlemen, 2018 was all in all a successful year for the Volkswagen Group
and
this is based on our strong team. And I'd like to take this opportunity, therefore, and I think it's also something I can do on your behalf, to express our sincere thanks to our more than 650,000 Volkswagen employees the world over. Together, we've helped move our operating business forward and created the strategic conditions for our company's further development. They also include the new management structure, which we implemented last year. Responsibility for the group is now shared by several people.
We make decisions whenever possible at the lowest level, close to actual operational activities. And the new brand groups for volume, premium and sport and luxury also work in accordance with this principle. And in addition, individual brands are assuming overarching responsibilities for specific regions. The brand groups, the brands and regions are in charge of operations. The group focuses on major synergies, the modular systems, our product portfolio, the cross brand workforce in factories and allocation of vehicles to the factories than sourcing in vehicle electronics and vehicle IT.
The last two points in particular may reap the greatest economies of scale for the Volkswagen Group in the future and we're already beginning to tap into them. In addition, we've strengthened the independence of the group components division, for example. It's been working as an independent business unit since the beginning of the year. And at a stroke, we have created one of the world's largest suppliers with a business volume of some €35,000,000,000 and more than 80,000 employees. The Group Components division plays a vital part in the success of the electric car.
It not only makes electric components for the MEB, but it also clusters tasks for the most important element, the battery. From cell research to battery system manufacturing and second life use all the way on to recycling. In our component plants in Skitter, Kassel and Brunswick, we are accomplishing the transformation from the combustion engine to electric mobility. We also intend to open up electric car components and the entire MEB to 3rd parties in the future. Stefan Sommer heads the Group Component division and Procurement and ensures optimal in house and external manufacturing.
Ladies and gentlemen, a great deal of money is needed for the major technologies of the future. Cooperation and partnerships are the right response to that. I've already mentioned cooperation with Ford in the field of light commercial vehicles. In addition, we've teamed up with Ladies and gentlemen, what's crucial for the success and the future proofing of Volkswagen is that in the transition of our corporate culture and leadership culture, we've got to continue to make progress. Volkswagen must become an even better, more transparent company that acts with complete integrity in every respect.
We are backed to that by the U. S. Monitor, Larry Thompson, a strong supporter and with a great deal of experience. He and his team are helping us to boost our realignment and drive our development in a critical yet constructive manner. So I'd like to take this opportunity to express my sincerest thanks to Larry Thompson and his staff.
Together, in 2018, we achieved some important milestones such as the golden rules in vehicle development, the code of contact for the group and the integrity program for all brands and regions. And we've strengthened our whistleblower system. We impose rigorous sanctions in response to misconduct and we also report on that in our internal media, while of course safeguarding all privacy rights. There were major changes recently in key posts at the company. All in all, last year, nearly 40 top positions were reallocated last year.
Gunnar Kurian is now in charge of Human Resources. Our new board member, Stefan Sommer, is responsible for the Components division and procurement. Ram Schott has taken over as the new CEO of Audi and Ralf Braunschtatter is the Chief Operating Officer, who is responsible for the day to day business activities of the Volkswagen brand. In particular, we aim to fill top hosts from our own ranks in the future. And to enable that, we will develop the skills of our top managers in a more pinpointed and systematic way so as to prepare them for their upcoming steps in their career.
We need even more managers who lead a culture of change and do so by example. Here too, we want to become more international and more diverse. As part of that, we are committed to creative drive, a willingness to change and strong leadership. That's why for the first time we've launched our own development program, almost 400 managers from the entire group are taking part in it. And we are revising the management remuneration system fundamentally.
The increase in the company's value will become the key indicator for defining the performance and compensation of our management. What will count in the future is not whether individual targets are achieved, for instance, those at the brand level, rather what will count is the overall result. Ladies and gentlemen, the Volkswagen Group has the substance global positioning and the financial strength to accomplish its transformation successfully. And I'm therefore convinced that we have a good opportunity not only to help shape the transformation in our industry, but to also drive it forward. Volkswagen will also play a leading role in the new world of mobility.
And nevertheless, we still have to contend today with some cumbersome structures, complex processes and high costs. There's a lot of work to do. We cannot afford to have a lot of ballast weighing us down over the long term. And that's why we and I myself are setting a fast pace for transforming our company. We're speeding up implementation of our group strategy Together 2025 and developing our objectives and performance indicators even further.
The Volkswagen Group is becoming more transparent, more agile, more efficient, more innovative and more profitable. And that's what counts as we move forward. 2019 will be a crucial year for all of this once again. Despite faltering economic momentum and political uncertainties, we have made a good start in the new fiscal year. In the Q1, we grew sales revenue by 3.1% despite a slight fall in deliveries.
The main reasons for that were improvements in the mix and the good performance
of the
Financial Services division. Operating profit before special items was up by $600,000,000 to $4,800,000,000 which was, of course, also aided by a revaluation of derivatives. We are sticking to our targets for the current fiscal year. Sales revenues, we expect these to rise by up to 5% and we anticipate an operating return on sales of between 6.5% and 7.5%. At all brands, we are conducting efficiency programs in order to safeguard our earnings and continue to fund the significant future investments under our own steam.
That also includes a stronger focus on our core automotive business, and we are reviewing whether we are still the best owner for various businesses. We have made a start by resuming preparations of an IPO at TRATON SE, at its meeting yesterday, the supervisory board requested the Board of Management to develop a forward looking, industrially meaningful solution for MAN Energy Solutions and RINC. The focus lies on opening future oriented growth perspectives for mechanical engineering in the group, for instance, by means of a joint venture, partnerships or a partial or full sale. Shareholders, ladies and gentlemen, the core tasks for all brands this year will remain to build on their market position. In 2019, we'll also remain on the offensive.
Our brands will launch a total of more than 90 new models. One of the highlights will be the new version of our iconic Volkswagen car. In October in Wolfsburg, we will be presenting the 8th generation of the Golf. It will continue the success story of the Mark 7 Golf, which still basically wins all comparison tests the world over despite the fact that it's at the end of its life cycle. We sold around 830,000 of them last year, so the Golf was, it is, a key vehicle for our group.
The new version will again set the benchmark in the compact class in terms of consumption, fuel economy and CO2 emissions, driving comfort, workmanship and connectivity. The car is fully connected and has, for the first time, a mild hybrid drive with gasoline, diesel and plug in hybrid versions and a range of 80 kilometers on one charge, the Golf offers a broad cutting edge drive portfolio. We can use it in just about all vehicle classes, in particular, in markets where e mobility is making a slower headway. The new Golf will also be available as a CNG model. We are the world leader for gas powertrains and better positioned in this field than the competition.
And we will also continue to expand and enhance this technology. And nevertheless, we are pushing ahead with electric mobility. It is for U. S. Shareholders too by far the most efficient way to achieve decarbonization and the fleet wide CO2 targets.
2019 will be a key year in our group wide electrification initiative. The car must become clean so as to make sure that individual mobility remains possible for as many people as possible and only then does auto mobility have a good future and we're at a turning point. Climate change is the key challenge facing mankind. If we do not significantly reduce CO2 emissions, the consequence for coming generations will be devastating. As the world's largest carmaker, we, our company in particular, has a special obligation.
Some 14% of CO2 emissions worldwide stem from the transportation sector. This includes passenger cars and trucks, but also airplanes and ships. The vehicles alone from our passenger car brands are responsible for 1% of global CO2 emissions. We aim to bring that 1% down to 0% by 2,050. We're committed to the targets set under the Paris Climate Agreement.
By 2,050, at the latest, the Volkswagen Group is to become CO2 neutral. That not only applies to our vehicles, but also to procurement, production and administration. And to achieve that, our Board of Management has agreed on an initial comprehensive program of decarbonization. We are guided in this by 3 principles. 1st, making effective and sustainable cuts to CO2.
2nd, switching to renewable energy sources for power supply. And third, offsetting emissions whenever they can't be avoided. We are involving our suppliers too in our efforts to reduce the CO2 emissions of our vehicles. We're making CO2 emissions a core component of agreements with suppliers. For instance, production and delivery of the batteries for the Audi E Tron is carbon neutral.
The vehicle is built at the CO2 neutral plant in Brussels. Production of the IT of the ID in Zwickau II will be CO2 neutral. We're converting our own power stations in Wolfsburg from coal to gas. And starting in 2023, that will cut CO2 emissions by 1,500,000 tonnes per year, the equivalent of annual emissions from 870,000 vehicles. Furthermore, we're committed to the use of renewable energies in our plants.
And to offset unavoidable CO2 emissions in vehicle production in the medium term, we're planning large scale investments in climate protection projects such as for reforestation. These measures will be paid for out of Volkswagen's own CO2 fund with €50,000,000 earmarked in a first stage. All this together is the most ambitious and comprehensive climate protection program ever undertaken in our industry. Ladies and gentlemen, the key element in our CO2 strategy is electric mobility. For the foreseeable future, there is no alternative to the battery powered electric drive over its entire lifecycle of some 200,000 kilometers.
An electric car produces just about half the CO2 of a vehicle with an internal combustion engine. The electric car is also far more energy efficient than other alternative drivetrains. The fuel cell for synthetic fuels may gain an importance over the medium and long term, and we continue to conduct research intensively on both of these options. Audi plays the lead role in the group in that regard. It will make the H Tron Quattro a fuel cell model, part of its low volume production starting in 2020.
And Audi and Porsche are laying the groundwork by carrying out research into synthetic fuels, but neither the fuel cell nor synthetic fuels will be available at reasonable prices or on an industrial scale with the necessary energy efficiency by the mid-2020s. Moreover, a completely new additional fueling infrastructure would have to be established for the fuel cell and the technology will only become a real alternative if the hydrogen comes from surpluses from renewable energies, and we are a long way from having achieved that. And that's why we are calling for a clear commitment to electric mobility and resolute action by all parties. Volkswagen is leading the way here. The Audi E Tron is on the market.
The interest among customers is huge. It will be followed by the global debut of the Porsche Taycan in September. By far, the sportiest electric car on the market. And here too, there is huge customer interest. More than 20,000 prospective buyers have registered so far.
Porsche is already preparing to expand capacities and the next highlight will be the presentation of the ID. 3 at the Frankfurt Motor Show in September. With its ID. 3, Volkswagen is introducing the first fully functional electric car that will cost as much as a comparably equipped Golf that is less than €30,000 That figure will fall even further, thanks to the government incentive in Germany. Pre booking began here in Berlin a week ago.
The reception so far has exceeded our expectations. Over 15,000 customers have secured an early production slot so far and we assume that the launch edition of the ID will already be sold out when it is unveiled at the Frankfurt Auto Show. The ID. 3 is the 1st vehicle based on the modular electric drive system that I have already mentioned. The MEB has been developed as an all electric platform.
It makes optimum use of the latest technologies in terms of performance, space and digital offerings. The MEB means we can achieve ranges in excess of 5 50 kilometers according to WLTP and the battery technology is going to become a key expertise at Volkswagen in our center of excellence in Salzgifta. Now with regard to increasing demand, we are focusing on establishing and running a battery cell production system together with a partner company at this plant. And yesterday, the supervisory board approved an investment volume of just under EUR 1,000,000,000 We're planning battery cell production in Germany, specifically in the city of Salzketa in the state of Lower Saxony, assuming that the economic fundamentals are right and CO2 neutral energy is available. The electrification initiative is also changing our vehicle factories.
The lead factory for the MEB will be our plant in Zikau, where conversion is already in full swing. Production of the ID3 will begin this year. And in addition to that, our plants in Emden and Hanover will be converted to production of electric vehicles, which is expected to begin in 2022. And this will create the largest production network for electric cars here in Europe and in North America. Chattanooga will be our site for the production of electric vehicles.
There, we'll invest some EUR 700,000,000 and create up to 1,000 new jobs. Our U. S. Subsidiary, Electrify America, is investing a total of $2,000,000,000 in establishing the charging infrastructure and on information campaigns on electric mobility in the United States. Then China in Anting and Foshan, 2 MEB plants that can make up to 600,000 electric cars a year are currently being built.
And just a couple of months after Zikal, we'll begin production there. Further potential plants are already in the planning stage. China is the world's leading electric mobility market. We will offer the largest portfolio of electric vehicles there and they will cater to all relevant market segments. Ladies and gentlemen, in the next few years, we will be launching many attractive electric cars.
For many customers, they will be the first choice, the best choice when it comes to running costs, connectivity, state of the art features and of course, eco friendliness. But people will only opt to buy them when they are sure that they can charge their electric cars anytime, anywhere. Together with industry partners, together with Ionity, we're building a European wide charging network. Between now and 2020, 400 fast charging stations with more than 2,400 points will be installed along Europe's major roads and highways and freeways, a quarter of them in Germany. With the charging opportunity once every 120 kilometers on the average.
And our subsidiary, And we are setting up our own charging points on employee parking lots and dealerships. The Volkswagen brand alone is installing around 3,500 stations for electric vehicles at its German locations. And we're also entering into partnerships with large retail chains. Customers will be able to charge their vehicles in front of the supermarket where they shop. Tesco in the U.
K. Is where we're beginning and further partners will follow. Shareholders, ladies and gentlemen, Volkswagen is better positioned for e mobility than the competition. As a group, we will make electric car successful with the right products, superior modular systems and global economies of scale. And as a result, we will make it affordable for broad sections of society.
Then the 2nd megatrend, digitization and software, is an area where we are moving forward with a similarly ambitious plan. Software will shape the car of the future. The main initiatives and innovations in the vehicle will come from this field in particular. Our customers expect us to provide them with updates and new services virtually every week over the entire lifecycle of the vehicle. And we're reorganizing Volkswagen to address this radical change, which demands completely new expertise and capacities.
We're transforming more and more from being a hardware producer to becoming a software based technology company, but without renouncing our traditional strengths in developing and producing great vehicles. We're the 1st carmaker to set up separate hardware and software development functions. Christian Singer recently took charge of the digital car and services function on the board of the Volkswagen brand with responsibility for group activities. And in the future, we will set greater store by software developed in house for all brands and regions. What this means for the Volkswagen Group will be explained by Christian Singer tomorrow at a separate event with media representatives tomorrow.
And you're warmly invited to take part. Software know how is also vital to expanding our business model beyond the car. Looking into the future, Volkswagen already is represented in all relevant area with polyline projects, for instance, with our Moia subsidiary, Moia and other shuttle services will be able to reduce traffic in cities and make it more sustainable. There was first Hanover and now recently we started operating in Hamburg too. Specially developed shuttle buses made in Asselberg and based on the crafter are used here.
They are a good complement to local public transportation. Ladies and gentlemen, the Volkswagen Group has picked up speed. In 2018, we have had a successful year. Our brands and regions made a good start in 2019. And with regard to the major issues for the future, electric mobility and digitization, we have taken some important strategic decisions and we're working systematically and rigorously on eliminating our weaknesses.
We are shaping mobility of the future. That is our aspiration. Volkswagen can do this better than any other automotive company. In 2019, we will see that the year is going to be an important stage on that road. We will also stick to our course in operational terms and do everything needed to make and meet our annual forecast.
Then in the long term, we want to become a stronger company for our employees, a more innovative company for our customers, a better and more environmentally aware company for society and a more valuable company for you, our shareholders and our investors. So in a nutshell, we want to become a Volkswagen that is valued and respected for the contributions it makes. We shape mobility for us and coming generations. I would now like to take this opportunity to thank you for your support and your financial commitment to Volkswagen. We're persuaded and convinced that it will continue to be worthwhile.
And thank you for your attention.
Thank you, Doctor. Diess. Ladies and gentlemen, at this juncture, I would like to say goodbye to all those who followed the proceedings of this Annual Chairholder Meeting on the Internet.