Volkswagen continues to benefit from the strong recovery in car sales, and is expected to have an operating profit of approximately 11 billion euros in the first six months of this year.
The preliminary figure exceeds the automaker’s 10.6 billion euros in 2020 and 9.6 billion euros in the first half of 2019.
In a brief statement, Volkswagen, the world’s second-largest automaker, also reported that in the six months to the end of June, net cash flow was approximately 10 billion euros.
But the Wolfsburg-based company also owns brands such as Audi, Porsche and SEAT, but warns that “the bottleneck of semiconductors has shifted and will happen.”.. Affect us [the second half of the year]”.
This week, the German car lobby group VDA stated that it expects 400,000 fewer cars produced In the country in 2021, it is mainly due to a shortage of chips. Volkswagen has said that it expects its shortfall to reach “six digits.”
In response to the global shortage of key components, Volkswagen stated that it has prioritized the production of high-margin high-end models, which will help ease the financial blow.
He added that increased demand for used cars has also increased the profitability of the company’s financial services division, which provides loans to customers.
“One quarter after another, these people are doing really well,” said Bernstein analyst Arndt Ellinghorst.
“It’s refreshing to see such huge numbers from traditional manufacturers,” he added. “It’s definitely harder to earn than some Spac cash flying around these days.”
Although Volkswagen’s car sales recovery in its largest single market, China, has slowed, it still released data. The sales of the group’s dedicated electric vehicle ID in the country are also disappointing. 3. ID card. 4. Domestic brands cannibalize more local market shares.
But the company benefits from a higher percentage of deliveries in Europe, which has higher profit margins than other regions, and strong sales in the United States.
Last month, Volkswagen revealed that compared with last year, global deliveries from January to May increased by 33%. Truck brands Man and Scania saw the strongest growth, with sales increasing by 68% and 61%, respectively.
According to the latest forecast, Volkswagen’s stock price has risen by more than 3%. The company will release the complete financial report for the first half of the year on July 29.
In addition, on Friday, the Volkswagen Supervisory Board voted to extend the contract of CEO Herbert Diss until his 67th birthday in October 2025.
Dis is a former BMW executive who joined the group in 2015. He planned the company’s 35 billion euros plan to enter electric vehicles. Last year, he had two conflicts with powerful unions, which opposed his radical cost-cutting measures.
Last month, a report commissioned by Volkswagen confirmed that Diss was in the room in 2015 when his predecessor was told there was a “Dieselgate” software can deceive emission tests, But the report concluded that Diss, who had just joined from BMW, “has reason to believe that competent Volkswagen institutions and employees will do the same… Communicate with U.S. authorities and customers in accordance with their responsibilities.”