VW lifts profit goal on strong premium car demand

Volkswagen is getting more confident about 2021.

The group on Thursday (May 6) lifted its profit margin target for the year.

That could now go as high as 7%, with vehicle deliveries and sales both seen up by more than a fifth.

VW says its premium brands get most of the credit.

Demand is coming in strong for Audi and Porsche.

During the first quarter, both saw deliveries of new cars rise by about a third on the year.

Sales of electric vehicles are also booming.

Over the same period they more than doubled to 133,000 units.

Chief Executive Herbert Diess said the group had "great momentum".

He said its "e-offensive" was gathering strength as new models were rolled out.

Operating profit for the quarter came in at $5.8 billion, helped by cost cuts.

That's several times higher than this time last year, when sales were hit by the global health crisis.