Volkswagen recovers from covid 19 fallout, chip shortage slows china business

Volkswagen recovers from covid 19 fallout, chip shortage slows china business

The Volkswagen Group reported today that its brands delivered nearly five million vehicles worldwide between January and June.

The increase of around 28 percent compared to the first half of 2020 is due to a pronounced catch-up effect. At that time, during the peak of the first Covid 19 wave, temporary closures of plants and handlers as well as the slump in demand had hit the automotive industry hard.

In Western Europe, sales were now up almost 31 percent, where the recovery had stalled in some areas in the spring. Volkswagen reported a half-year increase of over 45 percent for North America, as well as for the South American countries.

There was also strong growth in all regions of the world in the second quarter – with the exception of China, including Hong Kong. There, the Group brands sold 12 percent fewer vehicles to customers from April to June. The three months before that (plus 61 percent) had still been strong, so that in the end a good 16 percent increase was achieved overall.

In the most important market, parts for the recovery are missing

One main reason is said to be the ongoing bottlenecks in semiconductors. Volkswagen’s China boss Stephan Wollenstein therefore spoke of a "particularly challenging year" for the most important car market in the world. In the People’s Republic, business with more expensive cars in particular is doing better – other manufacturers are therefore also giving priority to the production of such models in the quantities of chips still available.

Wollenstein estimates that the problems triggered by this will be largely overcome during the second half of the year: "While the chip shortage has had a temporary impact on our sales development in recent months, we do not expect it to have a long-term impact." Sales of e-cars in China are also growing strongly.

Good compared to 2020

All brands gained ground globally. Since the beginning of the year, deliveries in VW’s main passenger car division have grown by almost 23 percent, Audi’s by more than 38 percent, and Porsche’s by more than 31 percent. Seat sold about 45 percent more cars. In June, the Group as a whole achieved an increase of 6.5 percent. However, all the figures should be seen in relation to the mixed initial level in 2020.

Higher deliveries increase profits. According to preliminary figures, the VW Group’s operating profit had already reached around eleven billion euros by the middle of the year – more than the total for 2020. The full figures will be released on. July. Other manufacturers also earn handsomely. Daimler just reported an adjusted operating profit of 5.42 billion euros for the second quarter of the year.

Like this post? Please share to your friends:
Leave a Reply

;-) :| :x :twisted: :smile: :shock: :sad: :roll: :razz: :oops: :o :mrgreen: :lol: :idea: :grin: :evil: :cry: :cool: :arrow: :???: :?: :!: