<p>German auto giant Volkswagen said Friday that it expected to report improved sales and profits for the first half, in preliminary results ahead of an earnings report later this month.</p>.<p>The company also has decided to extend the contract of chief executive Herbert Diess until October 2025, it added later.</p>.<p>"Deliveries to customers of the Volkswagen Group continued to recover strongly in the first half of the current year, leading to a very strong Group turnover as well as a very high operating profit," the initial company statement said.</p>.<p>Operating profit is expected to reach around 11 billion euros ($13 billion) in the first six months of 2021, it said ahead of its scheduled earnings report on July 29.</p>.<p>A global shortage of semiconductors that hurt production had "shifted and will rather impact us" in the second half of the year, it added.</p>.<p>The carmaker had reported first-quarter net profits of 3.4 billion euros, up from 517 million euros in January-March 2020 when the first wave of the pandemic closed showrooms and factories.</p>.<p>The supervisory board has now renewed its support for Diess, who was named chairman of the board in 2018 with a mandate to shake up traditional ways of operating in the wake of the "Dieselgate" emissions cheating scandal.</p>.<p>Diess tangled with VW's powerful unions several months ago and they accused him of serious management errors around the launch of crucial models.</p>.<p>He has turned the German automaker unwaveringly towards electric vehicles, a growing trend in the auto sector, and a compromise with the unions was reached at the end of last year.</p>.<p>This year's results now appear to be headed in the right direction with sales for the 12-brand group, which also includes the Audi, Porsche and Skoda brands, gaining 13 percent in the first half to 62.4 billion euros.</p>.<p>Like other carmakers, VW has been grappling with a supply crunch of semiconductors as the pandemic boosts demand for crucial microchips also needed for consumer electronics.</p>.<p>The chip shortage has forced VW to trim auto production at some plants and put thousands of workers on shorter hours, delaying car deliveries.</p>.<p>VW had already said in February that it nevertheless expected group revenue in 2021 to be "significantly higher" than last year, while car deliveries would also be "significantly up" on 2020.</p>.<p><strong>Check out DH's latest videos:</strong></p>
<p>German auto giant Volkswagen said Friday that it expected to report improved sales and profits for the first half, in preliminary results ahead of an earnings report later this month.</p>.<p>The company also has decided to extend the contract of chief executive Herbert Diess until October 2025, it added later.</p>.<p>"Deliveries to customers of the Volkswagen Group continued to recover strongly in the first half of the current year, leading to a very strong Group turnover as well as a very high operating profit," the initial company statement said.</p>.<p>Operating profit is expected to reach around 11 billion euros ($13 billion) in the first six months of 2021, it said ahead of its scheduled earnings report on July 29.</p>.<p>A global shortage of semiconductors that hurt production had "shifted and will rather impact us" in the second half of the year, it added.</p>.<p>The carmaker had reported first-quarter net profits of 3.4 billion euros, up from 517 million euros in January-March 2020 when the first wave of the pandemic closed showrooms and factories.</p>.<p>The supervisory board has now renewed its support for Diess, who was named chairman of the board in 2018 with a mandate to shake up traditional ways of operating in the wake of the "Dieselgate" emissions cheating scandal.</p>.<p>Diess tangled with VW's powerful unions several months ago and they accused him of serious management errors around the launch of crucial models.</p>.<p>He has turned the German automaker unwaveringly towards electric vehicles, a growing trend in the auto sector, and a compromise with the unions was reached at the end of last year.</p>.<p>This year's results now appear to be headed in the right direction with sales for the 12-brand group, which also includes the Audi, Porsche and Skoda brands, gaining 13 percent in the first half to 62.4 billion euros.</p>.<p>Like other carmakers, VW has been grappling with a supply crunch of semiconductors as the pandemic boosts demand for crucial microchips also needed for consumer electronics.</p>.<p>The chip shortage has forced VW to trim auto production at some plants and put thousands of workers on shorter hours, delaying car deliveries.</p>.<p>VW had already said in February that it nevertheless expected group revenue in 2021 to be "significantly higher" than last year, while car deliveries would also be "significantly up" on 2020.</p>.<p><strong>Check out DH's latest videos:</strong></p>