FRANKFURT, Germany – The Volkswagen Group’s after-tax profit rebounded dramatically to 3. 4 billion euros ($4. 1 billion) in the first 3 months of the year, as sales recovered in China, the company’s largest singles market, and when consumers opted for the most beneficial models in the company’s lineup. Electric car sales more than doubled.
The profit for the first quarter was 517 million euros in 2020, when the pandemic meant the closure of concessionaires and factories.
Sales revenue in the first quarter of 2021 increased by 13% to 62. 3 billion euros, driven by a 61. 4% uptick in unit sales when China reopened after being hit hard by the pandemic in the first quarter of 2020.
The Wolfsburg, Germany-based organization raised its profitability outlook for the year, saying that operating returns on sales would be 5. 5% successful to 7. 0%. The company stated that it expected consumer sales to be “significantly higher” compared to last year. , assuming a success of the COVID-19 pandemic.
The outlook advanced despite the continued shortage of semiconductors from suppliers that charge the company 100,000 cars lost in first-quarter production. Scarcity would “significantly increase” profits this quarter, the company said.
Chief Executive Herbert Diess said at a conference call with reporters that the company is restricting the effect of scarcity on profits by directing scarce semiconductor materials to cars that generate profits consistent with vehicle-consistent profits. functions, adding battery management, in-flight entertainment and precautionary systems and power-driving assistance.
CHIEF Arno Antlitz said the call that a strong part of the expected moment would help offset the previous production loss, and said the company saw “a smart chance of recovering lost cars in this part of the year. “
The company said Thursday that its position in currencies had advanced to 29. 6 billion euros, coins that it can use to invest in new technologies and boost its momentum towards electric cars and transport-related services. -internal combustion, more than double in the first 3 months of last year to 133,000 cars. Overall, Volkswagen sold 2. 4 million cars in the quarter, up 21%.
In addition to its eponymous brand, the Volkswagen Group includes luxury car brands Porsche and Audi, such as SEAT and Skoda.
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