Volkswagen profits surge despite selling fewer cars

Volkswagen mentioned Friday its internet earnings jumped final 12 months regardless of promoting fewer automobiles as a result of semiconductor scarcity as consumers forked out for better-equipped automobiles.

The German automaker’s internet revenue rose 75 % to fifteen.4 billion euros ($16.8 billion) in 2021.

The 12-brand group offered 8.6 million automobiles final 12 months, 600,000 fewer than in 2020 and a couple of.4 million under 2019 ranges.

Nevertheless, gross sales income rose 12 % partly as a consequence of “beneficial pricing” and lowered prices.

The world’s second-largest automotive group expects gross sales volumes to rise by 5 to 10 % in 2022 regardless of the persevering with impression of chip shortages, it mentioned.

This prediction “is topic to the additional growth of the conflict in Ukraine and specifically the impression on the group’s provide chains and the worldwide economic system as an entire,” VW mentioned in a press release.

Revenues are anticipated to rise between 8 and 13 % in 2022, with working return on gross sales to succeed in between 7 and eight.5 %—in contrast with 7.7 % in 2021 and 4.3 % in 2020.

In 2021, “clients have been ready to purchase better-equipped automobiles” and “premium manufacturers fared barely higher” than cheaper “quantity” manufacturers, VW’s monetary director Arno Antlitz advised a web-based convention.

As well as, Volkswagen was in a position to give fewer reductions and focus its semiconductor sourcing on Europe on the expense of different much less worthwhile areas, Antlitz mentioned.

© 2022 AFP