Despite disappointing new sales, record profits are being made.
People want to drive, that’s for sure. So if automakers can’t deliver new cars because of a shortage of computer chips, people get used cars. And so German car companies that respond well to this, despite the disappointing new sales, still collect large amounts.
Profit at Volkswagen due to chip shortage
Fortune reports that Volkswagen Financial Services is heading for a record profit of 4 billion euros this year. A spokesperson for the financial branch at Volkswagen reports that they have already earned more in the first half of 2021 than in all of 2016. In a non-corona year, the profit of, for example, Porsche or Volkswagen is about the same. The financial divisions of BMW and Daimler also report record profits this year.
According to fortune, large part of the profit comes from selling and leasing second-hand models. The used car market is overheated at the moment and there is a lot to be made from used cars. Volkswagen would according to fortune for example buying used cars in one country and exporting them to another country to sell them there for a profit. The branch also provides loans and insurance. They expect the profit to be permanent, even if the new market normalizes soon.
