Volkswagen Profits Surged in Q1, but the Chip Shortage Will Hurt Q2
German automaker Volkswagen (OTC: VWAGY) reported better-than-expected first-quarter earnings and strong sales of its electrified vehicles, but said that it expects the ongoing global shortage of automotive semiconductors to get worse before it gets better.
VW's net income of 3.4 billion euros ($4.1 billion) was a huge improvement from the 517 million euros it earned in the first quarter of 2020, when its sales and manufacturing were hampered by the onset of the COVID-19 pandemic. VW also beat estimates: Its operating profit of 4.8 billion euros ($5.76 billion) was well ahead of the 4.3 billion-euro average estimate from Wall Street analysts surveyed by FactSet.
VW began production of its ID.4 electric SUV in Germany and China during the first quarter. Image source: Volkswagen AG.
Source Fool.com
