Global Volkswagen Group Sales Plummet by 22% While BEV Sales Increased

Volkswagen 7 photos
Photo: Volkswagen
The company's Central European sales were down by almost 50%, while Western Europe saw declines of 25.7%. Battery-electric vehicle sales increased modestly by selling 217,100 in the first half of the year,
As recently as May 2022, the company was sticking to its earlier forecast of increased sales between 8-13% and an increase in deliveries of 5-10% for the year, as reported by Reuters. Volkswagen seemed to ignore the concerns of other global automakers who believe supply chain disruptioins and parts shortages will continue. Some automakers believe the easing of these issues will not be noticeable until next summer. If Volkswagen reaches their sales goals, they will do so by pulling a rabbit out of a hat to circumvent the issues plaguing other carmakers.

CEO Herbert Diess pointed out the company was forced to shut down plants in Europe due to a shortage in a wiring harnesses. They sent semiconductors they did not need to other regions to keep production flowing. They are hoping to continue using their position as a truly global company to balance production across their markets and relieve supply chain and product shortage pressure. Diess, unlike other senior executives in automotive manufacturing, believes chip shortages will ease in the second half of the year.

The company reiterated plans to list its luxury division Porsche AG in a partial initial public offering in the fourth quarter.

The positive news for the automaker is the increase in BEV sales in China. Bloomberg reported that they expect Volkswagen sales will overtake Tesla by 2024. They believe that Tesla's days as the top dog in BEV sales are numbered, and Volkswagen is next in line. It is thought that most legacy automakers will be unable to divest their BEV-related assets from their gas vehicle production since they are funding the move to BEV production. Volkswagen will be in a different position based on the injection of capital from the Porsche IPO.
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