Volkswagen keeps outlook despite challenges

STORY: Volkswagen stuck to its outlook for the current year on Wednesday (May 4) despite supply chain challenges.

VW, like other global carmakers, has found a scarcity of key components due to the health crisis and the war in Ukraine.

Those two factors have also added to the ongoing shortage of semiconductors.

But VW said its global production network helped it offset supply chain disruptions.

Chief Executive Herbert Diess said this had allowed the auto giant to move parts to those regions and brands that needed them most.

Europe's largest carmaker still saw uncertainty due to the conflict in Ukraine and the health crisis.

It added it could not yet foresee what the full impact on its business would be, should the situation worsen.

VW saw steady sales in the first three months of the year of around $66 billion.

Looking ahead, VW said it expected sales to rise 8 to 13% this year and projected an operating profit margin of 7 to 8.5%.

The automaker also saw chip supply improving in the second half of the year.

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