Financial predicament looms over Volkswagen as a ripple effect endangers operations - "We're just out of cash"
In a recent report by Handelsblatt, corporate insiders have revealed delays in the production of the highly-anticipated electric models, the ID.Roc and ID.Golf. The original production schedule, set for 2029, has been pushed back to 2030.
The delay in the production of these electric models has significant implications for Volkswagen's main plant in Wolfsburg. The combustion engine Golf may be moved to Mexico due to the delay, with the main plant not becoming fully electric until at least 2028. The ID.3, originally planned to move to Wolfsburg by 2027, will remain in Zwickau for the time being.
The delay in the production of the ID.Roc and ID.Golf is attributed to high cost pressure, weak electric vehicle sales, and open production questions. Volkswagen is currently facing a dilemma as it needs to save money and invest at the same time.
To gain financial breathing room, Volkswagen Group is planning to extend the use of electric vehicle platforms MEB and PPE. The company is also actively looking for strategic partners or buyers for several subsidiaries, including the battery division Powerco, Everllence, Moia, and ADMT.
The current planning round for Volkswagen is uncertain, with the supervisory board's date to set utilization of 115 plants and financial planning for the next five years being questionable internally. No official postponement or new General Meeting date related to delays in production of the ID. Roc and ID. Golf has been reported as of now.
Much speculation surrounds the implications of the delay in the production of the ID.Roc and ID.Golf for several plants. Volkswagen has not commented on the rumors about the delay, and no new information about the initial market launch of these electric models has been provided.
Despite the challenges, Volkswagen remains committed to its electric future. The delay in the production of the ID.Roc and ID.Golf is just one part of a larger strategic plan that aims to position Volkswagen as a leader in the electric vehicle market.
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