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Semiconductor crisis wipes out € 500 million from Volkswagen’s profits

The semiconductor crisis wiped out nearly € 500 million from Volkswagen’s pre-tax profit in the previous quarter as the German group struggled to produce enough cars to meet the resurrected demand.

According to the world’s second-largest automaker, profits fell by about 15% in the three months to the end of September, nearly € 3.1 billion, compared to just over € 3.6 billion in the same period in 2019. In 2021, we will sell as few cars as the ones sold during last year’s pandemic. The group delivered just over 9.3 million vehicles in 2020.

According to UBS, semiconductor bottlenecks reduced global car production in the previous quarter by 18% compared to the same period last year. However, some of VW’s rivals have exceeded Wall Street’s expectations anyway, and GM reports on Wednesday that it will reach the “high end” of 2021’s earnings guidance.

Herbert Diess, Volkswagen’s Chief Executive Officer, said:

Thursday’s results are in the midst of a new clash between Dís and Volkswagen’s powerful labor-management council. Volkswagen accounts for the majority of the 292,000 strong German workforce.

On Wednesday, the council accused executives of not wanting to engage with employees facing an uncertain future and planning a meeting with U.S. investors rather than confronting the appointment of a union. ..

“This action is unprecedented in our history, and once again shows that CEOs are neither sympathetic nor sensitive to the situation of workers in this crisis,” the council earlier said. Daniela Cavaro, who took over the representative of the group, said. Year.

Late Wednesday, Dís decided to cancel his other appointment and promised to meet with the Labor-Management Council, a person near the executive said.

Semiconductor crisis wipes out € 500 million from Volkswagen’s profits

Source link Semiconductor crisis wipes out € 500 million from Volkswagen’s profits

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