The CEO of Volkswagen, Thomas Schäfer, expressed during a recent internal meeting with top managers that the company is facing significant challenges. He stated that the company is facing a crisis, indicating that the German brand, which aims to become a leading manufacturer of electric vehicles while also supplying vehicles with combustion engines to global markets, is encountering considerable problems.
The director of the VW group says “difficult times” are ahead
The meeting follows the presentation of mixed sales results. While sales of the Volkswagen ID.4 crossover in the United States quadrupled in the second quarter compared to last year, with 6,690 units sold, the European plant in Emden, Germany, where the ID.4 is assembled, had to be closed for six weeks at the end of June due to weak demand.
In light of this, Schäfer indicated to more than two thousand managers that the coming weeks and months will be “very challenging” and he hopes to achieve at least “small victories.” The CEO of the carmaker also plans to introduce a new series of “performance programs” aimed at saving the company $11.2 billion in expenses over the next three years.
“Our costs are currently too high in many areas,” says Thomas Schäfer, calling for an immediate freeze on spending, as the brand continues to heavily invest in new technologies and infrastructure for electric vehicle production, as reported by Wards Auto.
Photo by VW
Volkswagen seeks favor in China while deceiving
European customers Insufficient sales in China pose a problem for the German brand, forcing them to lower the prices of their models to remain competitive. However, this also leads to lower profits. For instance, the price of the Volkswagen ID.3 electric hatchback was reduced to a mere $17,500 in China, roughly half of the European price, which starts at around $36,000 before taxes.
The German car manufacturer is currently preparing to launch the production of a brand-new electric sedan, the ID.7, as well as the new generation of petrol models, the Tiguan and Passat. Volkswagen also plans to soon introduce a range of more affordable electric vehicles, with prices starting at $22,000, aiming to compete with offerings from rival automakers Citroen and Renault.
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