AUTONEWS

Volkswagen will not repeat 2019 production pace

The world's second-largest automaker still faces the challenge of dealing with a semiconductor shortage, and the effort to stay afloat in the all-electric age only adds to the financial challenge. Volkswagen management expects car production to reach pre-pandemic level only in 2023, and it will be possible to completely overcome the deficit in 2024.

Relevant statements, as explained by Reuters, Volkswagen CFO Arno Antlitz made in an interview with Boersen-Zeitung at the end of the exit week. According to a representative of the automaker, in the second half of the year there will be some improvement in the supply of chips, but demand has already risen to a new level, so it will only reach equilibrium with supply in 2024.

Volkswagen is now suffering from interruptions in the supply of electrical wiring, the production of which was located on Ukrainian territory. This is still forcing the company to reduce the number of work shifts in its companies. Channels for the supply of wiring from other countries are urgently being worked on.

Before the end of the year, Volkswagen's main shareholder Porsche hopes to go public on the stock exchange to raise up to 90 billion euros of capital. In the German concern, these resources will be directed to the development of modern software and investments in the development of own production of traction batteries. Without the presence of the latter, as Volkswagen explains, it is difficult to count on the scale of the business for the production of electric vehicles.

Image source: Porsche