Volkswagen eyes U.S. market as war in Ukraine disrupts European production.

Volkswagen is shifting its focus towards North America, because the fallout from Russia’s assault on Ukraine precipitated extra provide chain complications for the corporate in Europe, executives mentioned.

For the reason that outbreak of the warfare final month, a number of of the manufacturers within the Volkswagen Group, together with Porsche and Volkswagen, have been pressured to droop manufacturing at their vegetation due to disruptions to provides, particularly the wiring methods important to the operation of autos.

Herbert Diess, the corporate’s chief government, mentioned on Tuesday that in response, Volkswagen was “shifting automotive manufacturing to areas reminiscent of China and the Americas” to assist compensate for the disruptions in Europe and fill a backlog of orders.

Final yr a scarcity of semiconductors that plagued the business contributed to a 6.3 p.c drop in gross sales for Europe’s largest carmaker. However the corporate made greater than 20 billion euros ($22 billion) in revenue earlier than taxes in 2021, almost doubling that of the earlier yr, because of a give attention to constructing extra worthwhile higher-end autos and reducing bills.

This yr, the corporate will put a precedence on rising in North America, particularly america, the place the 2015 diesel dishonest scandal eroded Volkswagen’s repute. Extra just lately, although, the corporate’s S.U.V.s, together with an electrical mannequin, have proved fashionable amongst American drivers, executives mentioned.

“Our enterprise depends on enhancements within the North American market,” Ralf Brandstätter, the chief government of the Volkswagen model, mentioned on Wednesday.

Tesla, the preferred maker of electrical vehicles in america, stays the strongest competitors for Volkswagen, though each Common Motors and Ford Motor have fashionable electrical fashions. Final week, the corporate unveiled an electrical model of the Volkswagen bus, the ID.Buzz, which it hopes will reignite American imaginations within the age of sustainability and #vanlife.

Volkswagen is relying on spinning off its extremely profitable Porsche division within the final three months of the yr, which may give it extra monetary flexibility within the unsure surroundings.