VW keeps 2022 outlook as chip supply expected to improve

Europe

FRANKFURT — Volkswagen Group on Wednesday stuck to its outlook for the current year after its global production network helped it offset supply chain disruptions caused by the war in Ukraine and the coronavirus pandemic.

Global carmakers, like many industrial sectors, face a scarcity of key components in the wake of COVID-related lockdowns and Russia’s invasion of Ukraine, compounding an ongoing shortage of semiconductors.

The automaker said in a statement it expects sales to rise 8 percent to 13 percent and an operating profit margin of 7.0 percent to 8.5 percent in 2022, pointing to its global network that allowed it to move parts to those regions and brands that needed them most.

“As a truly global company, we have extensive production capacities in all major growth and sales markets worldwide,” CEO Herbert Diess said in a statement. “Volkswagen’s global setup helped us to mitigate many of the adverse effects we are currently seeing.”

It still pointed to uncertainty from the conflict in Ukraine and the pandemic, adding the company could currently not foresee the full impact a deterioration of the situation would have on its business.

Volkswagen, which could list luxury division Porsche in a partial initial public offering later this year, said it still expected chip supply to improve in the second half of the year.

The company reported sales of 62.7 billion euros for the first three months of the year, up 0.6 percent on the same period in 2021.

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