VW Says Chip Shortage Will Continue To Affect New Car Sales In 2023

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After having had a tough year in 2022, Volkswagen announced that 2023 is likely to be just as challenging. Chip shortages and other supply chain disruptions, including a production shutdown due to the war in Ukraine, caused a persistent headwind.

Overall, Volkswagen ended 2022 on a strong note. Sales of electric cars grew by 23.6% to a total of 330,000 worldwide, led by the ID 4 crossover, which accounts for roughly half of shipments. However, 2022 sales were still down 6.8 percent compared to 2021, dropping to a total of 4.56 million cars.

In China, Volkswagen doubled its growing EV sales to more than 143,100 vehicles, including the ID 3 hatchback, ID 4 crossover and China-market ID 6 SUV. It is expected that sales in that market will grow significantly in 2023 with the launch of the updated ID 3, the new ID 7 sedan and the ID Buzz MPV. Other German automakers, including BMW and Mercedes-Benz, are seeing similar increases in sales in the China market and expect strong demand to continue in 2023.

Likewise, Volkswagen’s sales also increased in the US. The company reported a third-quarter increase of 12 percent for all vehicles for a total of 88,820. Sale The ID.4 hits a new sales recordincreased to 6,657 vehicles in the third quarter, up 10 percent over 2021. Overall, the company ended the quarter down 20 percent for the year.

According to Imelda Labbe, Volkswagen AG’s board member for sales and marketing, the automaker has an “unbelievably high” order backlog due to “persistent supply chain deficiencies.” Volkswagen expects those problems to subside by 2023, with production finally stabilizing.

Last August, outgoing CEO Herbert Deiss signed a Memorandum of Understanding with the Government of Canada. The deal relates to materials and battery technology, which Volkswagen hopes will address deficiencies in those areas.

Labbe also added, “The roadmap is clear. Volkswagen already has the widest portfolio of electric models. By 2026, the brand will have the right product in every segment, from entry-level e-cars to the new flagship ID 7.”

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