Volkswagen Lowers 2023 Deliveries Target Due to Supply Chain Issues

Volkswagen was forced to lower its 2023 deliveries target because of continuing transportation delays coupled with supply chain issues, according to The Wall Street Journal.

In a July 27 earnings report, Volkswagen lowered the target from 9.5 million automobiles to between 9 million and 9.5 million vehicles. The automaker said pressure was shifting from semiconductor shortages to transportation and logistics delays, although it also said that supply chain disruptions had eased during the second quarter of 2023. Overall, Volkswagen expects the cost of raw materials to decrease and logistics bottlenecks to lessen.

“The focus for the second half [of 2023] is now on strengthening net cash flow,” said Arno Antlitz, chief financial officer and chief operating officer of Volkswagen Group. “With the launch of performance programs at all brands and our strategic decisions in China, we will improve the competitive position of the Volkswagen Group even further.”

Volkswagen reported that its revenues grew during the second quarter of 2023 while its after-tax profits shrank from €3.91 billion ($4.31 billion) in Q2 2022 to €3.79 billion ($4.18 billion) in Q2 2023.

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• Source: https://www.supplychainbrain.com/articles/37797-volkswagen-lowers-2023-delivery-targets-due-to-supply-chain-transportation-issues