Volkswagen struggling, will cut production significantly

[gonealookin]

Volkswagen to Slash Half Its Models as Sales Fall (NYT free share link)

It sounds like their biggest problem is losing a lot of their market to electric vehicles made in China.  VW used to be the #1 automaker in the China market, but now the flow of vehicles is going the other direction, with the China-made electrics getting a big share of sales in Europe.

Besides the VW brand, the company also makes Audis and Porsches.  Trump's tariffs have had a particularly strong impact on sales of German-built Porsches in the United States.

Total production appears on its way to dropping by 25%, with significant job losses an obvious side effect.

The company said it would aim to produce nine million cars a year, compared with a goal of 12 million before the Covid-19 pandemic and 10 million more recently.

[kalvado]

Should I feel sorry about them?

[Plutonic Panda]

Should I feel sorry about them?

I don't feel sorry about any of the big auto makers, especially in America. I think we should've let them fail. All that money we spent bail them out we should've given that to new startups who want to make actual better vehicles.

[wanderer2575]

Another Herbie movie with Dean Jones and Michele Lee will take care of it.

[Max Rockatansky]

Should I feel sorry about them?

I don't feel sorry about any of the big auto makers, especially in America. I think we should've let them fail. All that money we spent bail them out we should've given that to new startups who want to make actual better vehicles.

As much as I don't care for the products of new GM they have been fairly financially stable.  Part of the hook with not letting GM and Chrysler go under was the economic impact it on domestic blue collar sector.  Having tens of thousands of workers suddenly out of a job was probably the worse than fronting bailout money.

[SP Cook]

IMHO.

- Of course we should have let Chrysler and GM go broke.  The high-quality manufacturers would have replaced them and employed just as many people, obviously not the same people, but that is what happens when you break faith with your customers, which both Detroit managers and Detroit workers did long ago.

- VW management made several really stupid decisions.  It got too deep in China.  There is no Rule of Law in China.  The socialist government will "partner" with an industry until it learns to do things on its and then just steal your investment.  It also got too deep in electric cars, which cannot exist outside subsidy.  And then there was the woe is me kowtowing to the greenies over the Diesel issue.   

- VW is the second largest car maker in the world.  The key statistic is that it is barely 8th in the USA. That is just how big VW is in the rest of the world.  Big sales in third world, domination of Europe.  The foolish deal with the Chinese government hurts.  Russia hurts. 

- VW, vis the USA, is what it is.  VW vehicles are fine, but there are plenty of other high-quality manufacturers with similar efforts, with more vehicles and better dealer networks.  Audi is about the same thing.  Its vehicles are fine, but the other two German brands are aimed at the same people and then the true high-quality manufacturers all have better than that.  And then there is Porsche, which they sell about 40K of per year.  You can only go against type so long before it isn't against type any more.  They chose to quit being a sports car maker and make SUVs for rich women.  Their mistake.

[kalvado]

IMHO.

- Of course we should have let Chrysler and GM go broke.  The high-quality manufacturers would have replaced them and employed just as many people, obviously not the same people, but that is what happens when you break faith with your customers, which both Detroit managers and Detroit workers did long ago.

- VW management made several really stupid decisions.  It got too deep in China.  There is no Rule of Law in China.  The socialist government will "partner" with an industry until it learns to do things on its and then just steal your investment.  It also got too deep in electric cars, which cannot exist outside subsidy.  And then there was the woe is me kowtowing to the greenies over the Diesel issue.   

- VW is the second largest car maker in the world.  The key statistic is that it is barely 8th in the USA. That is just how big VW is in the rest of the world.  Big sales in third world, domination of Europe.  The foolish deal with the Chinese government hurts.  Russia hurts. 

- VW, vis the USA, is what it is.  VW vehicles are fine, but there are plenty of other high-quality manufacturers with similar efforts, with more vehicles and better dealer networks.  Audi is about the same thing.  Its vehicles are fine, but the other two German brands are aimed at the same people and then the true high-quality manufacturers all have better than that.  And then there is Porsche, which they sell about 40K of per year.  You can only go against type so long before it isn't against type any more.  They chose to quit being a sports car maker and make SUVs for rich women.  Their mistake.

VW got a lot of bad press and lost market share on emissions scandal in US.
And BYD is a total newcomer eating existing manufacturers alive. They have their own technology... I am sure US would continue to compete on typical US terms - by not allowing better product on a market.