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Porsche and Audi Boom Buttresses VW as Chip Shortage Worsens

  • Carmaker sees higher returns despite hit to deliveries
  • Sales of premium and high-spec models boost first-half results
WATCH: CEO Herbert Diess discusses how the computer chip shortage has impacted the busines and how the company has managed through the Covid-19 pandemic.(Source: Bloomberg)

Strong sales of high-end Porsches and Audis are limiting the damage the global chip shortage is doing to Volkswagen AG, leading Europe’s biggest carmaker to raise its profitability outlook for the year.

VW lifted its forecast operating return on sales for the second time this year, now to between 6% to 7.5%, thanks to booming demand for premium and high-spec models. Double-digit margins at Porsche and Audi have been making up for semiconductor scarcity that’s prompted the company to temper expectations for annual deliveries.