What’s happening with VW?
Workers at the car giant have been taking industrial action following VW’s revelations about the possibility of closing German plants and axing thousands of jobs. Volkswagen is struggling with falling sales in Europe, high labour costs and excess capacity. Historic moment for Volkswagen: Automaker plans to close ‘at least’ 3 German plants and cut thousands of jobs. Volkswagen employees gather to hear from the automaker’s works council at the company’s headquarters in Wolfsburg, Germany on October 28, 2024.Volkswagen, Europe’s biggest carmaker, is in the midst of a severe sales and cost crisis that it says requires plant closures and layoffs. Talks to rescue VW have started, but could Germany’s car policy prevented this?
Why is VW falling?
Declining demand and EV transition hits VW Volkswagen is grappling with declining demand in several leading markets, including China. Rising interest rates and sluggish sales have weakened the company’s position, leaving it vulnerable to the economic slowdown affecting many global automakers. Volkswagen of America sales fell for the second-straight quarter as the German automaker saw broad declines across its portfolio, except for three models. Sales at the Audi luxury brand edged up slightly, enough to end a skid of six consecutive quarterly declines.VW has been hit especially hard. Once the biggest car company in China by some distance, its market share has fallen from 19% in 2019 to 14% today. It may slip into the single digits by 2030, says ubs. Business in China is also getting harder for Germany’s upmarket firms.
Is VW in crisis?
Volkswagen, Europe’s biggest carmaker, is in the midst of a severe sales and cost crisis that it says requires plant closures and layoffs. Talks to rescue VW have started, but could Germany’s car policy prevented this? President Donald Trump’s tariffs cost German auto giant Volkswagen about $1. Friday. Sales in North America plunged 16% due primarily to U. S. Volkswagen, which owns a host of brands including Audi, Lamborghini and Porsche.Volkswagen Passenger Cars CEO Thomas Schäfer said: We have to get to the root of the problems: we are not productive enough at our German sites and our factory costs are currently 25 to 50 percent above target. This means that some of our German plants are twice as expensive as our competitors.Volkswagen is grappling with mounting financial troubles, signalling a worsening situation in its global manufacturing operations. With two profit warnings in three months, the automotive giant faces falling EV sales, factory underutilisation, and tariff threats from China.
Does Volkswagen have a future?
Volkswagen’s future is electric. The company has committed to becoming carbon-neutral by 2050, and the transition to electric vehicles is at the core of this strategy. By 2025, Volkswagen aims to have more than 20 fully electric models in its global lineup, with EVs expected to account for 25% of total sales. Volkswagen has big plans over the next few years, including affordable electric cars and hybrid SUVs. Here’s everything you can expect to see before 2030. If you’re planning to buy a Volkswagen in the next few years, you’ve got a few exciting new models to look forward to.Volkswagens are practical, well-engineered cars that offer great value, while Audis cater to drivers looking for a more luxurious and high-performance experience. The extra cost of an Audi goes toward better materials, more advanced technology, and enhanced driving dynamics.Brand Prestige and Resale Value Resale Value Leader: Audi holds the top spot for luxury brand resale value, outperforming BMW in long-term value retention. Industry Recognition: Audi’s consistent accolades for value and quality enhance its prestige among luxury brands.
Is Volkswagen going to close in India?
Verdict- don’t worry about such rumours. VW India is neither shutting down nor they are doing any partnership with mahindra. Mahindra issued a statement stating the report claiming its plans to buy 50 per cent stake in Europe’s largest car manufacturer group operating in India as ‘speculation’. However, the carmaker did not specifically deny report that talks about a possible merger is underway.