Por Nick Carey
LONDON, May 7 (Reuters) – BMW remains on track to meet its 2021 profit targets despite rising raw material costs, the German carmaker said on Friday, having largely avoided the semiconductor chip shortage that hits competitors like Volkswagen.
Volkswagen CEO Herbert Diess had said on Thursday that Europe’s top automaker was in “crisis mode” over chip shortages, which would hurt second-quarter earnings, while Ford Motor Co said last week that the lack of chips could cut its vehicle production in half in the second quarter.
BMW is known for its strong relationships with suppliers and has been working with them to avoid disruptions. Aside from a temporary closure of MINI production in the UK, the automaker has not been affected.
BMW said sales of its electrified vehicle models more than doubled in the first quarter, which also benefited from rising prices and strong demand in China.
BMW had already reported a 370% increase in profit before tax, as it recovered more quickly than expected from a pandemic-ravaged first quarter of last year.
Sales in China almost doubled in the first quarter compared to the same period in 2020, according to the company.
(Reporting by Nick Carey, edited by Keith Weir, translated by Tomás Cobos)