End of supply crisis in sight at VW
THE VOLKSWAGEN GROUP is confident that its supply issues will ease in the second half of 2022, as its global scale and spread of production facilities enable it to weather the storm that has afflicted car makers since the pandemic began.
As a result, the firm has confirmed its business outlook for 2022, predicting a surge in demand later this year.
Its first-quarter report did also say, however, that it remains cautious of the effects of the war in Ukraine and any further Covid flare-ups.
Sales revenues in Q1 rose by 0.6% to €62.7 billion for an operating profit of about €5bn.
The average price paid for a car from all volume-selling group brands increased. Seat, Volkswagen and Volkswagen Commercial Vehicles widened their margins, with Skoda only failing to do so because it’s “consolidating the Russian business”.
Operating profits for the premium and sports brands (Audi, Bentley and Porsche) were even stronger. Porsche is running at an 18.6% margin, thanks to high demand for the 911, Panamera and Cayenne.
Volkswagen Group CEO Herbert Diess told investors that “as a truly global company, we have extensive production capacities in all major growth and sales markets worldwide. Our global set-up helped us to mitigate many of the adverse effects we’re currently seeing.”