Volkswagen, the European automotive leader, is in crisis. The brand’s CEO, Thomas Schäfer, has said that Volkswagen “is no longer competitive in its current configuration.”
But where does this crisis come from ? The reasons are multiple. First, Volkswagen was slow to enter the electric car market. The German brand arrived on this market with models that were more expensive than those of the competition, which hurt sales.
In addition, Volkswagen has high production costs. The German company has a fairly complex structure, with many factories and many processes. This leads to additional costs that competitors do not pay, which have simpler structures.
And most importantly, Volkswagen is facing fierce competition from Tesla and BYD. These two companies are specialized in electric cars and have lower production costs than Volkswagen.
To get out of this crisis, Volkswagen needs to take radical measures. The German brand needs to reduce its production costs and simplify its structure. It also needs to invest heavily in electric cars to offer more competitive models.
Leave a Reply