Volkswagen AG (VW) expects the protracted shortage of chips to ease in the second half of the year and contribute to a surge in output, offsetting months of curtailments.
VW confirmed a projection that deliveries are to rise by as much as 10 percent this year, it said yesterday, even after production slumped by 12 percent during the first three months.
Robust prices and demand for high-end premium vehicles helped to offset lower production, it said.
“Volkswagen’s global set up helped us mitigate many of the adverse effects we are currently seeing,” CEO Herbert Diess said in a statement. “Even in a more polarized world, Volkswagen is firmly committed to expanding its global footprint.”
The company said that its upbeat forecast hinged on further developments from Russia’s war against Ukraine and China’s strict COVID-19 policies weighing on the global economy.
The company has managed to navigate the shortages of chips and wire harnesses from suppliers in Ukraine by reallocating resources between its main markets in Europe, China, and North and South America, it said.
Automakers such as Mercedes-Benz AG and BMW AG have so far come through the supply-chain crisis by raising sticker prices for new and used vehicles to offset the drop in production.
VW last month announced preliminary first-quarter earnings of 8.5 billion euros (US$8.95 billion), almost double that of a year earlier.
The jump was due to a surge in the value of the company’s nickel hedging position following a historic short squeeze.
VW yesterday said that price increases for its volume brands and customers choosing “well-equipped” premium vehicles had helped to offset a drop in production.
Robust demand for the group’s sport and luxury vehicles — especially for Porsche’s 911, Panamera and Cayenne models — helped boost operating profit to 1.4 billion euros and deliver an operating margin of 18.6 percent, the company said.
●Origin：TaipeiTimes
●Link：https://www.taipeitimes.com/News/biz/archives/2022/05/05/2003777723
VW confirmed a projection that deliveries are to rise by as much as 10 percent this year, it said yesterday, even after production slumped by 12 percent during the first three months.
Robust prices and demand for high-end premium vehicles helped to offset lower production, it said.
“Volkswagen’s global set up helped us mitigate many of the adverse effects we are currently seeing,” CEO Herbert Diess said in a statement. “Even in a more polarized world, Volkswagen is firmly committed to expanding its global footprint.”
The company said that its upbeat forecast hinged on further developments from Russia’s war against Ukraine and China’s strict COVID-19 policies weighing on the global economy.
The company has managed to navigate the shortages of chips and wire harnesses from suppliers in Ukraine by reallocating resources between its main markets in Europe, China, and North and South America, it said.
Automakers such as Mercedes-Benz AG and BMW AG have so far come through the supply-chain crisis by raising sticker prices for new and used vehicles to offset the drop in production.
VW last month announced preliminary first-quarter earnings of 8.5 billion euros (US$8.95 billion), almost double that of a year earlier.
The jump was due to a surge in the value of the company’s nickel hedging position following a historic short squeeze.
VW yesterday said that price increases for its volume brands and customers choosing “well-equipped” premium vehicles had helped to offset a drop in production.
Robust demand for the group’s sport and luxury vehicles — especially for Porsche’s 911, Panamera and Cayenne models — helped boost operating profit to 1.4 billion euros and deliver an operating margin of 18.6 percent, the company said.
●Origin：TaipeiTimes
●Link：https://www.taipeitimes.com/News/biz/archives/2022/05/05/2003777723
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