Volkswagen lowers sales outlook as chip shortage hits profit

FRANKFURT, Germany (AP) — Volkswagen has lowered its forecast for deliveries to customers and reported a decrease in operating profits for the third quarter. The global shortage of semiconductors disproportionately hit the company’s business in China despite strong demand for its cars there. The company said on Thursday that deliveries in 2021 would be in line with last year’s. Previously, Volkswagen expected an increase in unit sales. It said operating profit fell 12% to 2.8 billion euros ($3.25 billion) compared to the year-earlier quarter, which also was weak due to the coronavirus pandemic. Chief Financial Officer Arno Antlitz described the results as a challenge to make “decisive improvements” in keeping costs down and improving productivity.