VW Troubles in the press again today

[tracktoy]

Just spotted this on Reuters

VW labour chief sounds alarm on mass layoffs, three German plant closures​

WOLFSBURG, Germany, Oct 28 (Reuters) - Volkswagen plans to shut at least three factories in Germany, lay off tens of thousands of staff and shrink its remaining plants in Europe's biggest economy as it plots a deeper-than-expected overhaul, the carmaker's works council head said on Monday.

Europe's biggest carmaker has been negotiating for weeks with unions over its plans to revamp its business and cut costs, including considering plant closures on home soil for the first time in a blow to Germany's industrial prowess.

Volkswagen reiterated on Monday that restructuring was needed and said it would make concrete proposals on Wednesday.
"Management is absolutely serious about all this. This is not sabre-rattling in the collective bargaining round," Daniela Cavallo, Volkswagen's works council head, told employees at the carmaker's biggest plant, in Wolfsburg, threatening to break off talks.
"This is the plan of Germany's largest industrial group to start the sell-off in its home country of Germany," Cavallo added, not specifying which plants would be affected or how many of Volkswagen Group's roughly 300,000 staff in Germany could be laid off.

 

[SRGTD]

Yes, VW aren’t in a great place just now.

I’m not the biggest fan of VW these days, but I hope they can get through their problems and they come out the other side leaner and fitter.

 

[H Rafiq]

What’s the reason? Not making enough profit?

 

[SRGTD]

What’s the reason? Not making enough profit?

From what I’ve read in recent weeks;

1. Shortfall of around 1/2 m sales a year - equivalent to the output of two factories, so production facilities are being under-utilised.
2. Slump in demand from VW’s traditional European markets.
3. Competition from Asia.
4. Slower than expected transition to EV’s.
5. Need to cut costs and restructure to be competitive.

 

[TheSwede]

Deutsche Welle news.

VAG group have problems, that goes for several other brands in the automotive industry in europe.

 

[SRGTD]

Deutsche Welle news.

VAG group have problems, that goes for several other brands in the automotive industry in europe.

Yes, it’s more widespread than just VW or VAG.

A major factor that could impact the financial stability of some car manufacturers is The Zero Emission Vehicle (ZEV) Mandate and it’s challenging targets for EV sales share - and heavy fines imposed (£15k fine per ‘non compliant vehicle sold) for not meeting those EV sales share targets.

The YouTube video below is worth a watch to understand the challenges facing car manufacturers as they’re required to ramp up EV production to meet the ZEV mandated targets. An interesting comment is made by the presenter in the video at around 12min 30sec to 13 min that they wouldn’t be surprised to see a major manufacturer the size of VW or Ford either be acquired by another manufacturer or go bust…..

 

[tracktoy]

and just to update this, saw these articles today

China tells carmakers to pause investment in EU countries backing EV tariffs, sources say​

Chinese EV maker BYD's net profit up 11.5%, revenue beats Tesla for first time​

VW faces strikes over 'Pandora's box' of plant closures as profits plunge​

the comments I find interesting are:

Volkswagen on Wednesday reported a 42% drop in third-quarter profit, its lowest level in three years and the fact the German Govt may have to resort to state aid (is that not what the tariffs are about against China.
and following on from @sgrt comments

With regards to Ford check out Ford investors impatient for the automaker to boost efficiency efforts
"Differing cost structures at Ford and GM are clear when comparing revenue and earnings before interest and taxes. They recorded similar revenues in the third quarter, $49 billion for GM and $46 billion for Ford, yet GM’s EBIT, which takes revenue minus the cost of goods sold and operating expenses, was about 1.5 times larger than Ford’s at $4.1 billion."

and then

Ford to halt production of F-150 Lightning EV pickup trucks for six weeks​

Ford has been scaling back its EV plans, saying in August it was killing a planned three-row electric SUV and pushing back a new electric version of its best-selling F-150 pickup.

 

[tracktoy]

And apart from all the other rubbish going on

Telemetry data from 800K VW Group EVs exposed online​

Infosec in Brief Welcome to 2025: hopefully you enjoyed a pleasant holiday season and returned to the security operations center without incident - unlike Volkswagen, which last week admitted it exposed data describing journeys made by some of its electric vehicles, plus info about the vehicle’s owners.

check out https://www.theregister.com/2025/01/06/volkswagen_ev_data_exposed/ along with many other sites for the full story.

 

[tracktoy]

saw this last week but did not have access to my account on this forum.

https://www.reuters.com/business/autos-transportation/vws-seat-boss-warns-spanish-jobs-risk-if-china-made-ev-tariff-is-not-lowered-2025-02-07/

Exclusive: VW's SEAT boss warns Spanish jobs at risk if China-made EV tariff is not lowered​

CUT OUTPUT, START LAYOFFS​

SEAT and VW Group executives have held regular meetings with EU officials on the Tavascan's fate, the latest on Thursday, while Spain's Prime Minister Pedro Sanchez has also appealed to Commission President Ursula von der Leyen to solve the issue and avert major job losses, a SEAT spokesperson said.

Griffiths declined to say what level of tariff the carmaker could afford but said it needed to be "as close as possible" to the original 10%.
If the additional tariff is not reduced or removed in the first quarter, SEAT will be forced to cut the loss-making vehicle from its line-up, Griffiths said.

 

[Tell]

It's Stellantis that campaigned for the European EV tariffs on Chinese made cars. Vag didn't want it. Stellantis wanted a joint deal with Vag like the Ford one. By that stage Vag had its joint Chinese / Vag factory going to make Vag EVs made in China for export across the world. Tavascan falling foul to that.

It's conceivable they could bring the Tavascan to Europe for manufacturer given the ID4 is made in Europe. I'm putting my money on a reworked Skoda badged as a Cupra which will be the electric Ateca replacement. Elrog... but I could be talking dribble

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Just assemble it in the same plant. Bit of a come down for Cupra brand thou.