Volkswagen on Friday said that the Ukraine-Russia war could dent business this year, as it reported a doubling of operating profit for the last year.
Automakers including Volkswagen and BMW are scrambling to search for alternative sources of important parts made in Ukraine from as far afield as China and Mexico, as the war has halted assembly lines and breaks complex supply chains.
“There is a risk that the recent developments in the war in Ukraine will have a negative impact on the Volkswagen Group’s business. This may also result from bottlenecks in the supply chain,” the automaker said.
The doubling of operating profit in 2021 was due to higher prices and a more favorable product mix, the automaker said.
The automaker expects an operating margin on sales of 7.0%-8.5% this year, compared with 7.7% in 2021.
