How Volkswagen CEO Got Fired After Praising Tesla
Volkswagen ends 2020 with over $ 12 billion in profits despite the coronavirus pandemic that has disrupted car sales and disrupted manufacturing supply chains.
The world’s largest automaker said Friday it expects operating income of € 10 billion ($ 12.2 billion) in 2020, boosted by a good year-end.
After losing 1.4 billion euros ($ 1.7 billion) in the first six months of 2020, Volkswagen (VLKAF) «proved to be quite stable in the second half». Q4 deliveries «continued to recover strongly» and exceeded the indicators of the previous three months.
Volkswagen made nearly double the money in 2019, with revenues of € 19.3 billion ($ 23.5 billion) on sales of € 252 billion ($ 306.6 billion). But the company’s shares jumped 6% in Frankfurt on Friday, suggesting investors were expecting an even sharper fall in earnings..
Automakers were hit by a crash in sales and supply chain disruptions in the early months of the pandemic. They now face a critical semiconductor shortage that threatens to disrupt production as the industry struggles to recover..
According to UBS analysts, Volkswagen was forced to adapt production at factories in China, North America and Europe this quarter and could lose 100,000 units, or about 4% of global quarterly production, due to component shortages..
The German automaker, which also owns the Audi and Porsche brands, said last week that it «expanded a little» its share of the global passenger car market in 2020. It delivered 9.3 million vehicles, 15.2% less than in 2019. It performed best in China, its single largest market, down 9% from a 20% decline in Europe..
Battery electric vehicle shipments reached 231,600 units, more than three times the volume in 2019. Plug-in hybrid vehicle shipments grow 175% to 190,500 units.
It looks like traditional car makers «can handle the shift to electric mobility much better than anticipated», – said senior analyst at Bernstein Arndt Ellinghorst (Arndt Ellinghorst) in a note to customers on Friday. «Investors should be aware of the overly low valuation of traditional carmakers, especially in the context of valuing all «new mobility»», – he added.
Despite only 500,000 vehicles produced in 2020, electric vehicle leader Tesla (TSLA) is worth $ 800 billion, eight times the market capitalization of Volkswagen..
In his very first tweet last week and perhaps in a sign of growing confidence in the German industrial giant, Volkswagen CEO Herbert diess (Herbert Diess) Mentioned The Company’s Advancement In Electric Vehicles, Noting Tesla CEO Success Ilona mask.