Volkswagen warns bottlenecks here to stay

STORY: Volkswagen warned supply bottlenecks were the new normal on Friday (October 28).

The German automaker blamed barriers to technology transfers between East and West.

VW said it had 150,000 unfinished vehicles due to a lack of semiconductors and other critical parts.

It is now stocking up on supplies to protect against more shortages this winter.

VW also reported earnings slowed down in the third-quarter to just under $4.3 billion - below pre-health crisis levels.

It pointed towards the cost of its Porsche listing, and the write-off of its self-driving startup Argo AI - a joint venture with Ford.

Earnings were boosted by sports and luxury brands.

They are more able to pass on higher prices to wealthier consumers than volume brands.

VW lowered its expectations for deliveries this year to be on par with last year - down from a previous forecast.

But it did keep its earnings outlook of hitting the upper end of a 7 to 8.5% margin.

It also expects growth in the auto market next year, despite a worsening economic outlook.

VW shares fell more than 2% in early trade.