Sebastian Bell’s Post

Volkswagen is facing significant challenges, prompting potential plant closures in Germany for the first time in its history. The company is struggling with declining sales in China, increased competition from Chinese electric vehicle manufacturers in Europe, and its own operational inefficiencies. With a workforce much larger than competitors like Toyota, VW's profit margins have shrunk, driving a "drastic attempt to cut costs." This situation reflects broader struggles as VW grapples with outdated technology and strategic missteps, leading to internal conflicts over potential closures. Article link below 👇🏼 #volkswagen #cars #automotive #engineering https://lnkd.in/eRwMy5-c

Costs, costs, costs” are what Oliver Blume, the boss of Volkswagen (VW), recently said the car giant must address most urgently. His diagnosis of VW’s longstanding problem is nothing new, but his approach to dealing with it undoubtedly is. On September 3rd Mr Blume announced that, for the first time, vw was considering closing factories in Germany to tackle the “demanding and serious situation” confronting Europe’s carmakers. Even if he succeeds in doing so, however, shutting factories will not be sufficient to reverse VW’s dwindling sales and stay ahead of the looming onslaught of cheap Chinese electric vehicles (EVs). #Germany #Volkwagen #is #facing #major #obstacl #with #high #manufacturing #costs #therefore #VW #will #close #some #factories

Germany Mulls Support for VW Amid EV Transition Challenges Germany’s government is exploring ways to support Volkswagen as the automaker faces hurdles in its shift to electric vehicles, according to Reuters. This comes as VW grapples with high costs, low productivity, and fierce competition in the EV market. Government Considers Aid Amid Job Cut Concerns Economy Minister Robert Habeck stated, “VW is of central importance to Germany,” highlighting the automaker’s significance to the nation’s economy. The government’s consideration of support comes in response to potential job cuts at Germany’s largest carmaker. VW recently announced the need to slash costs at its namesake brand, citing challenges in the competitive EV […] by Haye Kesteloo #ev #Germany #Make #Nio #Tesla #Volkswagen

Volkswagen is contemplating its first-ever factory closures in Germany, which could lead to conflicts with unions as the company navigates challenges related to its transition to electric vehicles (EVs) and a decline in consumer spending. The automaker is also considering ending a long-standing agreement with workers that guarantees job security. The primary focus is on its struggling passenger car brand, which is facing reduced profit margins. If implemented, these closures would be unprecedented in Volkswagen's 87-year history. Following the announcement, VW shares rose by 1.3%, mitigating a 13% decline experienced this year. #MotiveAsia #Japan https://lnkd.in/ddcPfaGv

Volkswagen, a cornerstone of German engineering, is facing a critical challenge as it struggles to transition to electric vehicles (EVs) and compete with fast-growing Chinese automakers. After a 64% drop in profits and plans to close plants and cut jobs, VW’s shift to EVs has been slowed by costly delays and internal setbacks. The company’s reputation was already tarnished by the Dieselgate scandal, and now, waning demand in key markets like China, where local EV brands are gaining momentum, is putting further pressure on its future. To survive, VW must overhaul its business model and adapt to a rapidly changing global automotive landscape. https://lnkd.in/gHtsMhJX

Germany’s car industry is sputtering. Volkswagen plans to shut at least three factories in Germany and cut pay by 10 per cent, according to its employee council. Mercedes-Benz’s net profits have halved from a year ago... #automotiveindustry #automotive #automotiveaftermarket #motortrade #vw #mercedesbenz

Volkswagen AG is considering factory closures in Germany for the first time in its 87-year history, parting with tradition and risking a feud with unions in a step that reflects the deep woes roiling Europe’s auto industry. The reasons are clear: Europe’s efforts to compete with Chinese rivals and Tesla Inc. in electric cars are faltering.

Volkswagen could close plants in Germany, warns of "serious situation" Volkswagen's vast empire is showing signs of cracking. “Why it matters: As the second largest automaker in the world, VW remains a powerful force in Europe, the U.S. and China in particular — but the company's size is turning into a problem.” “The German company says it may close plants in its home country amid what CEO Oliver Blume reportedly called ‘a very demanding and serious situation’ for the European automotive industry.” “That would mark the first-ever German plant closures in the company's nearly nine-decade history.” “Another part of the problem is that VW is a bloated company compared with its competitors, meaning it has less margin for error.” “The company had some 684,000 employees in 2023. That's about 309,000 more than the ever-efficient Toyota, which sold about 2 million more vehicles than VW worldwide last year.” “By the numbers: The VW brand's profit margin fell from 3.8% in 2023 to 2.3% in the first half of 2024, moving in the wrong direction from the company's long-term target of 6.5%,” according to Evercore ISI analyst Chris McNally.

Challenges and Changes: The Current State of the German Automotive Industry”? Volkswagen is currently facing significant challenges in Germany and in Europe. The company has announced that it might close some of its factories in Germany for the first time in its 87-year history. This decision comes as VW struggles to meet its cost-cutting goals amid a tough economic environment. "The European automotive industry is in a very demanding and serious situation," Oliver Blume, Volkswagen Group CEO, said in a statement Monday On the other hand, AUDI AG, which is part of the Volkswagen Group, is performing relatively better. The luxury brands under VW, including Audi, are seeing better sales compared to the core VW models. These developments have caused concern among workers and German politicians, as the potential plant closures and job cuts could have a significant impact on the local economy. #industry #manufacturing #automotive #future https://lnkd.in/d8xFbPqN

🚨 Volkswagen's Historic Shift: German Plants Facing Closure for the First Time in 87 Years 🚨 Volkswagen, one of the world's leading automotive manufacturers, is navigating through an unprecedented challenge as it contemplates shutting down its German factories — a first in its storied 87-year history. Several factors are contributing to this seismic shift in the European automotive landscape: 🔹 The rise of affordable electric vehicles (EVs) from Chinese manufacturers is reshaping competition. 🔹 Germany’s role as a manufacturing hub is weakening, adding operational pressure on VW’s efficiency. 🔹 VW's market share is particularly under strain in China, where local EV brands like BYD are becoming strong competitors. 🔹 The company is under pressure to make cost reductions, potentially affecting job security agreements that have been in place since 1994. As VW looks to adapt to evolving market dynamics, this moment will be crucial in determining its long-term success. Balancing cost management, workforce stability, and innovation in this turbulent time will be key. 🚗 What do you think lies ahead for one of the world’s largest automakers? Credit SAURABH SINGH . #Volkswagen #Germany #China #AutomotiveIndustry #ElectricVehicles #EV #BusinessTransformation