Volkswagen expects deliveries, revenues and margins to rebound strongly this year as the Covid-19 pandemic eases, after an almost halving in profits in 2020 that was still better than the German carmaker originally expected.
The global number two carmaker after Toyota, Volkswagen is spending tens of billions of euros to reinvent itself as a leader in the market for electric vehicles, where Tesla has stolen a march on established rivals.
Deliveries and sales, which were both hit by the pandemic in 2020, are seen up significantly this year, the company said, without being more specific. In 2020, sales fell 11.8% to €222.9bn, while deliveries dropped 15.2%.
“The financial results now available are far better than originally expected and show what our company is capable of achieving, especially in a crisis,” VW finance chief Frank Witter said.
“We intend to carry over the strong momentum from the significantly better second half into the current year.”
While the company has emerged from the hit to demand caused by the pandemic, a shortage of crucial semiconductors caused it to adjust production through February, joining other carmakers around the world that have suffered similar problems.
Despite the profit drop, Volkswagen recommended keeping its dividend.