Despite chip shortage, Volkswagen YTD sales go up by 3.3%

MANILA: Because of the ongoing semiconductor shortage, Volkswagen said that its net operating cash flow saw a reduction of € 0.7 billion after nine months.

The German carmaker reported that the increased inventories of unfinished vehicles, battery cells, and raw materials, auxiliaries and consumables are a result of the supply issue.

Despite the reduced earnings, Volkswagen delivered around 3.8 million vehicles to customers worldwide in the first nine months (up 3.3% YTD). During the reporting period, sales revenue grew to €55.5 billion (+18%) and the operating profit increased by €2.6 billion. 

 

"Despite the massive challenges caused by the impact of the COVID-19 pandemic and the ongoing shortage of semiconductors, Volkswagen’s performance in the first nine months of 2021 improved on the prior-year period," Volkswagen Chief Financial Officer Alexander Seitz reported. 

He added: "It was no longer possible to mitigate the impact of the semiconductor shortage in the third quarter that resulted in substantial production losses and low inventory levels. The cash flow is also influenced by work in progress on components and vehicles for other VW Group brands." 

VW also reported that its EV offensive continues to gain momentum. In the first nine months, its global electrified-vehicle deliveries accounted for 167,800 battery-electric vehicles (+169% YTD) and 86,900 plug-in hybrid EVs (+98%). Volkswagen said it is "the market leader for all-electric vehicles in Europe and is meeting its targets in the USA." 

In China, Volkswagen’s sales of the ID. Family increased . Just after the launch, more than 6,000 ID. models were already delivered to customers in the second quarter. This figure rose to around 23,000 in the third quarter. The upward trend accelerated further in October to the expected delivery of some 14,000 units. As well as the ID.4, the seven-seater ID.6 (above) has proved popular, with more than 7,000 units already sold since the SUV was launched.

Photos from Volkswagen

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