Despite a drop to deliveries of over a fifth in the second quarter, Volkswagen Group is sticking to its previous profits guidance for the year and expects to see deliveries rebound as supply shortages ease.
Despite the slump to deliveries, second quarter VW Group sales revenue was up 3.3 percent at EUR69.5bn on higher pricing actions. Operating profit (before special items) however, was down 27.7 percent at EUR4.7bn.
“Despite unprecedented global challenges, Volkswagen has demonstrated remarkable financial robustness. The operating margin in the first half of the year reflects the strong product substance and proportionately higher sales in the premium segment. In addition, the volume group has proven that it can deliver good results even in a challenging environment,” said CFO Arno Antlitz.
BEV demand continued to grow rapidly in Q2, with the order intake in Western Europe for H1 2022 40 percent above the previous year’s level. Despite supply bottlenecks, a temporary stop of production in Europe and Covid-related lockdowns in China, 118k BEVs were delivered in Q2 – reflecting a share of total deliveries of 6 percent. In the first half of the year, BEV deliveries increased by 27 percent to 217,000 vehicles.
Volkswagen added production capacities for the ID.4 in Emden, Chattanooga and for the ID. Buzz in Hanover in the second quarter to support the planned increase of global BEV production in the second half of the year and beyond.
Volkswagen Group confirmed its outlook for 2022 as supply constraints ease. The supply of wiring harnesses has been managed successfully and is mostly back to normal levels, it said. The group expects the product mix to normalize in H2 as the semi-conductor situation improves in combination with a strong order book. A noticeable recovery of the monthly sales towards the end of Q2 additionally bodes well for H2 sales, VW said.
However, VW warned it is still not possible to conclusively assess the specific effects of the war in Ukraine or effects of the Covid-19 pandemic on the Volkswagen Group’s business, on the global economy and growth in the industry in fiscal year 2022. In Europe in particular, there are uncertainties regarding energy supply, VW noted.