Volkswagen Admits It Has Lost Its Competitiveness

Volkswagen, Europe's largest automobile manufacturer, is trying to combat the difficulties it has experienced in recent years. Increasing pressure from Japanese, Korean and Chinese competitors, the transition to electric vehicles and rising costs put Volkswagen in a difficult situation. Volkswagen CEO Thomas Schäfer admitted in a message to employees that the brand had lost its competitive edge.

Volkswagen's Throne is Shaking

Volkswagen has been the leader of the European automotive market for many years. The Golf model, in particular, dominated the market as Europe's best-selling vehicle. However, in recent years, Volkswagen's throne has begun to shake. Toyota's hybrid models, the establishment of Stellantis, Renault's renewed product range, and Hyundai and Kia's electric models have eroded Volkswagen's market share. In addition, Chinese manufacturers began to enter the European market.

Volkswagen's difficult situation was revealed by a message sent by CEO Thomas Schäfer to employees. According to Reuters, Schäfer said in his message: "We see that the Volkswagen brand is no longer competitive with our old structure, operating and production costs." Schäfer stated that the brand has entered a restructuring process and aims to save 10 billion euros.

Volkswagen is Preparing for the Electric Future

Volkswagen is focusing on electric vehicles to regain its competitiveness. The brand is developing the new SSP platform that will lead to the all-electric Golf. This platform will make Volkswagen's electric vehicle production more efficient and cheaper. Volkswagen plans to introduce more than 2025 new electric models by 20.

Volkswagen is making major investments to become a leader in electric vehicles. The brand is building battery factories in Europe, China and the USA. It is also working to improve electric vehicle charging infrastructure. Volkswagen seems to do its best to be competitive in electric vehicles.