Volkswagen (VWAGY) said the global semiconductor shortage, which has limited the output of the auto industry, will continue through the first half of 2022 and perhaps beyond.
The report came from MarketWatch, which cited Murat Aksel, management-board member for procurement.
The executive expects chip supply to gradually improve next year. "We anticipate a slight improvement in the supply of semiconductors for the year as a whole versus 2021," he said.
Other auto makers have been hit hard too.
Volkswagen shares recently traded at $30.70, up 3%. They have soared 47% this year amid investor enthusiasm for the company’s electric vehicle business.
Morningstar analyst Richard Hilgert puts fair value at $40 for VW but assigns the company no moat.
He noted that third-quarter profit beat expectations.
“Volkswagen is successfully executing a global automotive strategy and has one of the most aggressive plans to transition to battery electric vehicles from internal combustion powertrains,” Hilgert said.
“A broad array of brands, serving multiple segments, reduces reliance on any one vehicle category.
“As one of the world's leading volume producers, Volkswagen's economies of scale from common platforms across a number of models enable cost savings unattainable by smaller competitors.”
To be sure, “management cut 2021 volume guidance to ‘in line with the prior year level’ from ‘noticeably above,’” Hilgert said.
“The company slightly lowered revenue expectations to ‘considerably higher’ from ‘significantly higher’ than last year.”
So, “we reduced our estimates to a 5% rise in revenue on a 1% increase in volume, down from 12% revenue and 8% volume growth,” he said.