The war in Ukraine and the resulting sanctions imposed on Russia also had a negative impact from an economic perspective.
AUDI AUTOMOBILE SUPERDRAW AT OUTLOOK COM DRIVERS
Outside of China also, the Premium brand group had to face a number of logistics constraints, primarily in the area of truck freight due to a lack of drivers as well as in rail traffic and sea freight. This caused disruptions in the logistics chains as well as temporary closures of production sites and dealerships. Production and deliveries in China came under strain at times owing to local lockdowns as part of the zero-Covid strategy imposed by the government up until the end of 2022. Good price enforcement and reductions in sales incentives in the face of strong market demand had a positive impact on the operating profit of the Premium brand group. Furthermore, the Audi brand in particular worked closely with customers to find the best possible alternatives, while partially limiting the range of models and options offered at the same time. Other key measures included ongoing adaptations in production to take account of installation rates, equipment variants and profit contributions within the Premium brand group as well as the development of technical alternatives and alternative solutions. Group Procurement was also in constant contact with chip brokers in order to further increase supply security. The Premium brand group collaborated very closely in this respect with its suppliers and in part also with the manufacturers of semiconductors. There were also further restrictions in supply, in relation to batteries for plug-in hybrid and fully electric models, for example.Ĭrisis teams established as early as 2020 worked at great pace in consultation with the Volkswagen Group in order to minimize the impact. The structural undersupply of semiconductors is likely to continue to be felt in 2023, even though there has been some gradual improvement in the supply of parts since the second half of 2022. Supplies of semiconductors were therefore restricted throughout all of 2022, impacting planned vehicle production and consequently deliveries. The Premium brand group was faced with major challenges in 2022 in a year that was defined by the Russia-Ukraine war, fragile supply chains, ongoing restrictions in the supply of semiconductors, lockdowns in China due to the pandemic, threats of energy shortages and high energy prices, to say nothing of high inflation and fears of recession. Business operations and key figures of the Premium brand group were significantly impacted in the year under review by numerous other crises and the convergence of negative external influences, albeit some temporary in nature.
The year 2021 was already significantly affected by problems in the supply of semiconductors, among other reasons due to regional Covid lockdowns and natural disasters.
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