Volkswagen Group posts positive first-half results despite fewer deliveries

The Volkswagen Group has posted a strong operating result for the first half of 2022, despite a significant drop in vehicle sales and deliveries.

Thanks in part to a positive performance from its premium and sports brands, such as Bentley and Lamborghini, the group recorded an operating result of €13.2 billion (£11.0bn) - a 16.1% increase compared with the first half of 2021.

Overall group deliveries for January to June 2022 dropped by 22.2% year on year to 3.875 million units, while sales were down 14% to 4.0m.

Electric vehicle order intake remained healthy, growing 40% year on year in Western Europea and 27% globally. The group has sold 217,000 EVs so far this year, with 118,000 EVs delivered to customers in China.

Volkswagen achieved the results despite a drop in performance during Q2, where it recorded operating profits of €4.7bn (£3.98bn) – a 27% drop year-on-year for the quarter, partly due to commodity hedging transactions involving raw materials.

The Volkswagen brand, Skoda, Seat and Audi all experienced a drop in year-on-year vehicle sales.

Volkswagen’s CFO stated the brand was performing well despite the ongoing global semiconductor crisis and war-related parts shortages. It previously had problems supplying wiring harnesses produced from Ukraine, but said it had managed the shortages successfully.

"Despite unprecedented global challenges, Volkswagen has demonstrated remarkable financial robustness. The operating margin in the first half of the year reflects the strong product substance and proportionately higher sales in the premium segment,” said Arno Antlitz, Volkswagen Group CFO. “In addition, the volume group has proven that it can deliver good results even in a challenging environment.”

However, the firm added that it is “still not possible to conclusively assess” the total impact of the war in Ukraine or the coronavirus pandemic will have on business for the year.

It also raised concerns about potential energy supply problems in Europe but insisted supply chains will improve and vehicle availability will ramp up in the second half of the year.   

"Despite all the caution in the face of the volatile market environment and geopolitical risks, we are confident that we can further accelerate the transformation of the group," Antlitz said.