Volkswagen Lowers Delivery Targets as Supply-Chain Issues Persist
German car giant said logistics bottlenecks are shifting from semiconductor shortages to transportation delays Volkswagen employees work on the assembly line in Zwickau, Germany. Photo: Krisztian Bocsi/Bloomberg News David Sachs Updated July 27, 2023 3:02 am ET Volkswagen said some supply chain bottlenecks were easing, including less pressure on semiconductor supplies, but warned transportation delays persisted as it lowered its deliveries target for the year. The German car giant said it would deliver between 9 million and 9.5 million vehicles this year, down from its previous estimate of 9.5 million. It also reported higher revenue and lower profit for the second quarter. In an earnings report Thursday, Volkswagen said supply chain disruptions continued to ease in the second quarter, relative to some of
Volkswagen employees work on the assembly line in Zwickau, Germany.
Photo: Krisztian Bocsi/Bloomberg News
Volkswagen said some supply chain bottlenecks were easing, including less pressure on semiconductor supplies, but warned transportation delays persisted as it lowered its deliveries target for the year.
The German car giant said it would deliver between 9 million and 9.5 million vehicles this year, down from its previous estimate of 9.5 million. It also reported higher revenue and lower profit for the second quarter.
In an earnings report Thursday, Volkswagen said supply chain disruptions continued to ease in the second quarter, relative to some of the extreme shortages the auto industry suffered through during the pandemic and its aftermath and the war in Ukraine. It said though that pressure was “shifting from semiconductor shortages to transportation and logistics delays.” Still, it said it expects lower raw material costs and “gradually easing logistical bottlenecks.”
The German car maker said aftertax profit was 3.79 billion euros, equivalent to $4.2 billion, compared with 3.91 billion euros in the second quarter of last year. Pretax earnings were €5.45 billion, up from €5.14 billion, and revenue grew to €80.06 billion from €69.50 billion.
Volkswagen said margins rose to 7% for the period, up from 6.5% in the second quarter of 2022.
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