Volkswagen records strong 2022 Q1 sales despite global challenges
Volkswagen Group has announced positive financial results for quarter one of this year. The auto major informed it earned sales revenue of 62.7 billion euros. Volkswagen attributed the revenue to improved sales mix, better pricing, consistent cost discipline and the flexibility provided by the Group’s global set-up. The company said it mitigated the impact of the semiconductor shortage by reallocating resources between its main markets in Europe, China, and the Americas.
Volkswagen earned around 5 billion euros as operating profits which, it stated, is significantly higher than the previous year. The company also shared its outlook for 2022 where it expects that the semiconductor shortage may get better in the second half of this year. Volkswagen remains uncertain about the Russia-Ukraine conflict and the effects of the Covid-19 pandemic on the Group's business. Volkswagen CEO Herbert Diess said the Group has shown resilience again in the first quarter despite the unprecedented challenges of the world.
Volkswagen said, despite the challenges, it will continue to push for expansion in global growth markets. It will focus on the North American region, especially the United States, as it intends to grow its profit share by 10 per cent by 2030. Battery-electric vehicles (BEVs) will be the central element of this strategy, as the auto major wants to introduce more than 25 EVs by the end of the decade.
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Diess shared Volkswagen will continue to expand its global footprint and push for profitable growth. “As a truly global company, we have extensive production capacities in all major growth and sales markets worldwide. Volkswagen’s global set up helped us to mitigate many of the adverse effects we are currently seeing. Even in a more polarized world, Volkswagen is firmly committed to expanding its global footprint, further driving its transformation into a sustainable and fully digital mobility provider," he added.