Issue link: https://maltatoday.uberflip.com/i/1447668
10 COMMERCIAL 3.2.2022 VOLKSWAGEN sales dropped around 8% in 2021 as it battled the ongoing global semiconductor shortage, but it recorded a substantial uptick in sales of all electrified models. e German company delivered 4.897 million vehicles globally, down from 5.328m in 2020 - which was itself a 15.1% decline, attributed to the impact of the Covid-19 pandemic. Volkswagen cited the lagging supply of semiconductors as the principal fac- tor in the latest decline, with output of various models restricted by temporary factory closures throughout the year. Volkswagen said the effect of the pro- duction limitations couldn't be entirely compensated for throughout 2021 and predicts that the first half of 2022 will remain highly volatile and challenging as the shortages persist. It claimed to have a record European order backlog of 543,000 vehicles but anticipates that it will lower this figure as production rates stabilise over the course of the year. While overall sales declined, however, Volkswagen is celebrating a 73% year- on-year increase in the sale of plug- in vehicles. Sales of plug-in hybrids (PHEVs) climbed 33%, while EV vol- ume nearly doubled, soaring 97% with 263,000 sold globally. Volkswagen CEO Ralf Brandstätter hinted that this trend is set to carry on as the electrification of the brand's line- up continues. In a very short time, we've reached a top position for all-electric vehicles in Europe, he said. With our Accelerate strategy and the expansion of the model portfolio, we will continue to increase the pace of the e-mobility offensive. Before the end of this year, the ID Buzz will represent yet another emotional model in our ID family. e ID Buzz van is the fourth addi- tion to the ID family in Europe. It will be launched in commercial and pas- senger-carrying forms later this year, following a reveal in the coming weeks. EVs and hybrids accounted for more than 7% of global deliveries and almost a fifth in Europe. In Volkswagen's home market, a quar- ter of all cars sold had a plug-in drive- train of some form. e rise in EV popularity was most profound in China, where Volkswagen sold 437% more EVs than in 2020. It an- ticipates a further considerable increase in 2022. e most popular Volkswagen EV was the ID 4 SUV, accounting for near- ly half of the 263,000 EVs sold globally, while around 76,000 examples of the ID 3 hatchback were sold, compared with 41,500 e-Up city cars and 18,000 exam- ples of the China-only ID 6 SUV. Volkswagen sales drop 8% but electric vehicle volume doubles The Volkswagen ID 4 GERMANY'S BGA trade association warned on Wednesday of massive supply chain disruptions due to the rapid spread of the highly infectious Omicron variant of the coronarvirus, but said a long-term collapse of the supply chains was unlikely. German industry has been hit by supply shortages of microchips and other com- ponents, while rising coronavirus cases are clouding the outlook for retailers at the start of 2022. ere is no risk of collapse, but of a massive disruption of the supply chain – at least temporarily, BGA President Dirk Jandura was quoted by Funke newspaper group as saying. Although many wholesalers around the world have made their supply chains more flexible, disruptions in global deliv- ery networks might still occur, he said. You cannot fully cover yourself against a global pandemic, Jandura said, calling for government support through lower ener- gy and electricity prices and other forms of help. Omicron now accounts for more than 44% of coronavirus infections in Ger- many, the Robert Koch Institute (RKI) for infectious disease has said. Germany reported 45,690 cases on Tuesday, 49.5% more than on the same day a week ago. Concerns that the new variant could bring critical services to a halt prompted the German government to tighten the rules for restaurant and bar visits and to shorten COVID-19 quarantine periods. Germany's Chamber of Commerce (DIHK) welcomed the new isolation reg- ulations but said it was concerned about a growing number of infections in the logistics sector, which is already suffer- ing from staff shortages, and warned of consequences for food retail and medical production sectors. German trade body warns of huge supply chain disruption over Omicron