The car maker’s profits were boosted in part by Porsche’s investment in EVs, as sales of its electric Taycan sedan more than doubled from the previous year. During the first nine months of 2021, Porsche sales accounted for about 34% of the profits from VW’s automotive division.

Luxury cars withstood chip shortage

Porsche isn’t the only luxury car brand doing well. Rolls-Royce sales also rose to record highs in 2021, as did those of Bentley vehicles, another luxury brand owned by VW. Aston Martin sales to dealers rose by 82% last year, the company reported yesterday.

Luxury cars have done well during the pandemic in part because they’ve been less hard hit by the semiconductor shortage, as Bentley sales chief Alain Favey explained to the Wall Street Journal last month.

“We are hardly affected by the chip shortage,” Favey said, explaining that auto manufacturers make sure the most profitable cars get chips first. “From that perspective we are prioritized, so we managed to get all of the chips we needed.” This supply chain advantage, coupled with demand from wealthy car buyers who likely got richer during the pandemic, makes brands like Porsche particularly resilient.

If VW does does pursue a Porsche IPO, it could happen in the second half of this year.

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