Volkswagen reportedly considering closure of factories in Germany for the first time in its 87-year history as it fights competition from China’s electric vehicle (EV) makers.
But seriously, they do everything but build compelling and affordable cars.
During COVID they realised they can build only SUVs and sell them for inflated prices and that would be even more lucrative than selling cheaper more affordable and sustainable cars, and now they are surprised why people are not buying their cars.
This is the reason. It is not because of their interest in fairness or free market (there is none), but because China is both critical to their production process and a massive market that cannot be ignored. If China retaliates their execs won’t be able to buy their tenth yacht.
This is a bad interpretation from the outlet. VW has been fighting against tariffs for Chinese EVs.
https://www.reuters.com/business/autos-transportation/volkswagens-cupra-at-risk-planned-eu-tariffs-says-brand-ceo-2024-09-03/
But seriously, they do everything but build compelling and affordable cars.
During COVID they realised they can build only SUVs and sell them for inflated prices and that would be even more lucrative than selling cheaper more affordable and sustainable cars, and now they are surprised why people are not buying their cars.
Mystery, right? /s
This is the reason. It is not because of their interest in fairness or free market (there is none), but because China is both critical to their production process and a massive market that cannot be ignored. If China retaliates their execs won’t be able to buy their tenth yacht.