Volkswagen Raises Forecast After Record Profit

Volkswagen Raises Forecast After Record Profit

Volkswagen Raises Forecast After Record Profit

Volkswagen is raising its outlook for 2021 after a record profit in the first half of the year.

The operating return in the group is expected to be between six and 7.5 percent and thus half a percentage point higher than previously forecast, the Wolfsburg-based car company announced today. In contrast, the group dampened expectations for deliveries due to the lack of semiconductors.
However, Volkswagen is still assuming a “noticeable” increase over the previous year. In the first half of the year, Europe’s largest automaker sold almost five million vehicles worldwide, around 28 percent more than in the weak period of the previous year.
According to CEO Herbert Diess to ORF.at, the premium business in particular went very well with double-digit returns, as did the financial services division. According to Diess, the electric offensive is gaining momentum.
The impairments caused by the bottleneck in electronic components will now have an impact more in the second half of the year. According to VW, the bottleneck will drag on until the end of next year. In the first half of the year, Volkswagen was already unable to produce a high six-digit number of vehicles.
The day before, VW had taken another step towards its declared goal of becoming a mobility company with the purchase of the car rental company Europcar.

Volkswagen Raises Forecast After Record Profit

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