"As VW, engineer a vehicle that fits within everybody's budget."
"As VW, engineer a vehicle that fits within everybody's budget."
Volkswagen is in a tough spot. Their top brass is considering implementing severe cost-cutting measures, such as salary reductions and shutting down some factories. Economy Minister Habeck has now slammed Volkswagen for their faulty approach to vehicle policies.
German Economics Minister Robert Habeck has urged Volkswagen to start producing affordable electric cars for everyone. He suggested having options priced around 20,000 euros, a sum that's within reach for most people, during a "Handelsblatt" gathering in Berlin. "Volkswagen isn't about luxury cars. Manufacture a car that's affordable for all and bring it to the market," Habeck challenged. Volkswagen seems interested in this idea, but they need to make it a reality "hopefully soon."
Germany must prevent companies like Tesla from the US and Chinese manufacturers from dominating the evolving market. Tesla has done well in manufacturing electric cars. Chinese firms are now making bigger, good, and affordable cars, with a growing presence in Germany and prominent spots that had been Mercedes-Benz's territory before.
"We can't act like Chinese cars are less than great now. They are substantial, high-quality, and budget-friendly cars. We always talk about competition. It's here, and we need to handle it," Habeck stated.
Habeck again advocated for a purchase incentive of 1,000 euros for new or used electric cars to boost sales. He also suggested a subsidy for individuals with lower or middle incomes from the state.
Volkswagen, Europe's largest car manufacturer, is in trouble. The company is fighting declining sales and is threatening layoffs and factory shutdowns, while also pressing for a 10% pay cut from employees and elimination of benefits like bonuses and allowances. The IG Metall union is insisting on retaining all locations and ensuring employment for the approximately 130,000 workers.
Dax companies, including Volkswagen, should focus on producing more affordable electric cars to compete effectively with US and Chinese manufacturers. The German government could help by offering purchase incentives and subsidies for lower and middle-income individuals.
Despite facing challenges, Dax companies like Volkswagen should learn from successful electric car manufacturers, such as Tesla and Chinese firms, which have penetrated European markets and are offering high-quality, budget-friendly electric cars.