Volkswagen AG said an improving situation in the supply chain and strong demand for vehicles bode well for the second half of the year as the automaker reported second-quarter results that beat expectations.
Deliveries have rebounded noticeably in recent weeks, VW said on Thursday, joining Mercedes-Benz AG and rival Stellantis NV in solid car-buying forecasts as the battle for enough semiconductors eases. Despite reporting robust earnings, VW is still suffering from the July 22 ousting of its CEO Herbert Diess, who will be replaced by Oliver Blume, head of the company’s Porsche brand.
The company’s shares rose as much as 3.1 percent in early trading in Frankfurt.
VW expects car availability to improve across its premium and mass-market brands after prioritizing production of high-end models as the supply backlog throttles production. Since the semiconductor crisis began, the strategy has helped deliver strong returns for manufacturers and cushion the blow of a supply slump.
Europe’s biggest automaker, which has had four CEOs since 2015, swapped out its market leader after flaws in its software unit delayed key models like the Porsche Macan SUV. Blume, a former Audi trainee with a strong operational track record, is also navigating an increasingly fragile business environment, plagued by Europe’s energy crisis and record inflation.
The Cariad software unit made strides in the second quarter with updates to driver-assistance features and new lane-changing and automated parking features, VW said.
With car demand still outstripping supply, Volkswagen is throwing a listing at its cherished Porsche brand into an increasingly bleak economic outlook. The company has hired a dozen banks to speed up its fourth-quarter share sale in what could become Europe’s largest IPO. Blume, who runs both VW and Porsche, hasn’t wowed potential investors already worried about governance issues because the sports-car maker isn’t independent of its parent company under current plans.
Clean operating income, which included a partial reversal of hedging gains on commodity contracts, fell to 4.7 billion euros ($4.8 billion) in the three months ended June, compared to 4.1 billion euros analysts had forecast.
https://www.independent.ie/business/world/volkswagen-sees-robust-outlook-on-strong-demand-and-easing-supply-pain-41873634.html Volkswagen sees a robust outlook of strong demand and easing supply concerns