Despite the dire situation, VW has doubled its profits. The reasons for this are clear. However, VW warns of “unprecedented challenges” in the future.
VW got off to a good start in 2022: The Wolfsburg-based company almost doubled its profits in the first quarter. After tax, VW revenue for the period from January to March rose from 3.4 billion euros to 6.7 billion euros. System conditions and the ongoing lack of treats, supply restrictions due to the war in Ukraine and problems due to the frequent closure of the corona in China are not very easy.
Pre-tax benefits: 8.5 billion euros
Prior to tariffs, interest and special items from the diesel issue, VW’s operating profit rose from 4.8 billion euros to 8.5 billion euros. According to VW, this is due to fencing activities, which have increased in value as a result of rising commodity and energy prices. But things were also going well in the big car dealership: the most expensive brands especially of the groups got the highest sales price here – customers need no hope for discounts in times of scarcity.
A few fifth cars were brought in
Because of the semiconductor problem, VW built 12 percent fewer cars and delivered fewer than five cars. Despite this, sales increased slightly by 0.6 to 62.7 billion euros. The figures also include the hijacking of US truck manufacturer Navistar in July 2021 for $ 3.7 billion (currently equivalent to approximately 3.5 billion euros).
Diess warns of “unprecedented challenges”
However, the chip crisis and explosive energy costs make VW very uncomfortable when looking at the future. CEO Herbert Diess warns of “unprecedented challenges”. The supply of small-scale processors and raw materials has not yet been strengthened and is likely to be more difficult due to the Russian invasion of Ukraine. And in VW’s most important market, China, there is a constant threat of production suspension due to corona closure. In addition, at present there seems to be no end to rising energy costs. This is why Diess warned the Wolfsburger Allgemeine Zeitung and Wolfsburger Nachrichten: “The resulting inflation could shake Europe.”
VW Vehicles: Less sales – more profit
VW is currently deriving its benefits from its high-level branches and, according to its own reports, due to high cost discipline. Sales of so-called VW brands, Skoda, Seats and light commercial vehicles dropped from 27.4 billion euros to 24.4 billion. However, before the specifics, the group still made a profit of 900 million euros here – after 1.4 billion euros in early 2021. VW passenger cars dropped from 17.6 to 14.9 billion in sales, but profits increased from 490 513 billion euros.
Charged fees are sharply reduced
The VW’s Premium brand group includes Audi, Bentley and Lamborghini. The group kept its sales stable, but increased its profits from 1.5 billion to 3.5 billion euros. Porsche also increased its profits: from 1.2 billion euros to 1.4 billion euros – sales at the Zuffenhausen company rose from 7.0 euros to 7.3 billion euros.
Chips for expensive cars
Above all, VW received a profit increase for so-called “high income contributions”. In other words, last year the group made available processors available for its luxurious high-end brands, model models with expensive accessories and electric vehicles subsidized by taxpayers. Car shortages around the world are maintained and keep prices for new and used cars higher. You can see in the photo gallery how the group can change its graphic frequencies as part of the conversion into an electronic drive.
The only time I can afford: yes. It is good if no one has ever been in a car before.
No, that’s too expensive for me. Only used cars have real value.
VW reports shocking figures for the first quarter of 2022: The group was able to double its profits despite a lack of treats and raw materials, the war in Ukraine and locks in China, as well as rising energy prices. On the one hand, the Wolfsburg company did this for the benefit of the balance sheet from the courtyard operations, on the other hand they preferred to make their available processors accessible for their profitable luxury cars. Global car shortages also lead to the highest prices – discounts are currently not possible.
As it looks to the future, VW is uncertain: CEO Herbert Diess warns of “unprecedented challenges” and even sees stability in Europe at stake because of rising inflation.