The shortage of microchips and semiconductors had a considerable impact on Volkswagen’s accounts. Not surprisingly, the German group showed all its negativity in view of the end of the year: the final decision was to revise the estimates downwards sales and earnings. Two more have been added to the crisis caused by the lack of fundamental components factors not to be underestimated: the production stops generated by the Coronavirus pandemic, and the acquisition in the truck sector of the American Navistar, for which Volkswagen has paid a considerable sum.
Volkswagen’s pessimism is easy to read: the German group itself has specified how there is a risk of bottlenecks and interruptions in the supply of semiconductor components, a phenomenon that has intensified throughout the sector and whose negative impact has been felt especially since the beginning of the second half of the year. The estimates in view of the end of the year have thus been revised downwards, and now speak of a substantial linearity between the results of 2021 and those of last year. Market conditions are not easy to deal with, however, so it cannot be ruled out that Volkswagen’s pessimism could become even more accentuated. Also because the German group itself has identified what are likely to be the factors that will most affect the company’s future business.
They range from the economic situation to the growth of fierce competition, passing through the volatility of the commodity and foreign exchange markets and the need to secure supply chains to the most stringent requirements relating to CO2 emissions: all variables which ultimately risk affecting Volkswagen’s results, both in 2021 but also in the coming months. We will see how the German group intends to react to this situation, which we remember involves closely most car manufacturers globally.
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