Volkswagen warns of more supply chain issues in 2022

BERLIN, March 15 (Reuters) – Volkswagen (VOWG_p.DE) sold 2 million fewer cars than expected last year due to semiconductor shortages, it said on Tuesday, warning that bottlenecks Persistent supply bottlenecks, high commodity prices and the Russian-Ukrainian conflict could hit growth in 2022.

Volatility in commodity markets could continue into 2026, Volkswagen said, exacerbated by Russia’s invasion of Ukraine, which sent prices for materials critical to car production, such as nickel, skyrocketing. and palladium.

The Volkswagen Group has a production site in Kaluga as well as sales units and financing companies in Russia, he said, which could be affected by new sanctions against the country. It has no subsidiaries or equity investments in Ukraine.

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Still, the group’s business activities in Russia and Ukraine were not significant, he said.

Volkswagen announced on Friday that it had doubled its operating profit in 2021 to just under 20 billion euros ($21.99 billion) thanks to higher prices and a more favorable product mix, despite deliveries total units reaching a 10-year low of 8.9 million. Read more

Going forward, it plans to increase deliveries by 5-10% in 2021 and increase revenue by 8-13%, it said on Friday, even as it warned of problems persistent in the supply chain.

The automaker reported increased revenue in all major regions in 2021, including Asia-Pacific, where it saw lower unit sales.

Volkswagen and Toyota (7203.T) have temporarily suspended production at some factories in China due to COVID-related lockdowns, with Toyota warning on Tuesday that the suspensions could last until the end of the month. Read more

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Reporting by Victoria Waldersee Editing by Miranda Murray and Louise Heavens

Our standards: The Thomson Reuters Trust Principles.

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