VW Says Chip Shortages Will Continue Impacting New Car Sales In 2023

Volkswagen predicted that 2023 would be just as difficult as 2022 with chip shortages and other supply chain disruptions, such as production halts caused by the Ukraine war, are causing persistent headwinds. Volkswagen finished 2022 on a high note. Electric car sales increased by 23.6% to 330,000 worldwide, led by the ID 4 crossover, which accounted for roughly half of all deliveries. However, sales in 2022 fell 6.8 percent from 2021 to a total of 4.56 million vehicles.

Volkswagen more than doubled its EV sales in China, increasing to over 143,100 vehicles, including the ID 3 hatchback, the ID 4 crossover, and the ID 6 SUV for the Chinese market. With the introduction of the updated ID 3, a new ID 7 sedan, and the ID Buzz MPV in 2023, it anticipates significant growth in that market. Other German automakers, such as BMW and Mercedes-Benz, saw similar increases in Chinese market sales and anticipate continued strong demand in 2023.

Volkswagen sales are also increasing in the United States. The company reported a 12% increase in total vehicle sales in the third quarter, totaling 88,820 units.The ID.4 set a new sales record in 2016, with 6,657 vehicles sold, up 10 percent over 2021. Overall, the company ended the quarter down 20 percent for the entire year.   Herbert Deiss, the outgoing CEO, signed a Memorandum of Understanding with the Government of Canada last August. The agreement is related to battery materials and technology, and Volkswagen anticipates that it will address shortages in those areas.

"The roadmap is clear," Labbe added. Volkswagen already has the most diverse lineup of electric vehicles. By 2026, the brand will have a product for every market segment, from entry-level e-cars to the new flagship ID 7."