At another time in history, the outlook would have been pink lenses. But the war in Ukraine changed everything. The Volkswagen group, the second largest carmaker in the world with its 9 million cars sold in 2021, has nevertheless announced solid prospects for 2022 as part of its New Auto program, without hiding that the conflict in Eastern Europe threatens the global economy . Nobody can feel safe, not even a giant like Volkswagen, which is also very present in Russia. The weight of supplies from Russia and Ukraine is “very significant,” admitted the CEO of the group Herbert Diess. Everything will depend on the duration and developments, but evidently if the situation deteriorates Diess admitted that “the outlook should change”. the German group, meanwhile, is putting a hand to its strategies for hedgingexplained CFO Arno Antlitz.
The decline of the title
Volkswagen shares down sharply in line with the Frankfurt index, the DAX 30. For the German stock exchange, the downside risk is 3 times higher than in Piazza Affari. The European lists have engaged the reverse for the evolution of the war in Ukraine, the stalemate of talks between Moscow and Kiev, the tensions between the United States and China and the leap of infections in China itself, which triggered the collapse of the Hong indices Kong and Shanghai.
In fact, Volkswagen in 2021 sold 2 million cars less than planned due to the now well-known shortage of semiconductors, the group reiterated on Tuesday, admitting that the new bottlenecks in the supply, the skyrocketing prices of materials. prime and the Russia-Ukraine conflict could undermine the group’s growth in 2022, despite the performance of flagships Porsche and Audi, the premium brands that guarantee margins.
What matters is that the volatility of commodities in the markets could continue until 2026, according to Volkswagen, exacerbated by the Russian invasion of Ukraine, which has skyrocketed the prices of key materials for the production of automobiles. example to nickel, aluminum and palladium. The German group has a Russian manufacturing site in Kaluga, as well as sales units and finance companies in the attacking giant led by new Tsar Vladimir Putin. Such companies could be indirectly affected by further sanctions. There are no subsidiaries or holdings in Ukraine. In any case, the group’s commercial activities in Russia and Ukraine have not been significant, according to the group’s leaders, engaged in the annual conference.
Volkswagen reported on Friday that it doubled operating profit in 2021 to just under € 20 billion ($ 21.99 billion) thanks to higher prices and a more favorable product mix, despite total unit deliveries having reached the 10-year low of 8.9 million.