@@Siculo.77 He said, 3 years ago, that if they failed to rapidly transition to EV, they would have to lay off 30k workers in the near future. He got fired, and the unions spearheaded this. Today, his successor, having curtailed the EV initiative, is now saying the same.
We went through this long term decline of our car industry in the UK in the 1970s. We didn’t invest in innovation and were riddled with Unions that just couldn’t evolve and compromise. Now it’s Germany’s turn.
But Germany bought into the EV dream , they spent a fortune on trying to switch to produce EV's People now do not want EV's Ive just checked EV sales in Aug are DOWN 70% in Germany All VW cash reserves have gone into EV development that people are rejecting , thats the root of the problem France EV sales have declined 45% I doubt if there will be a recovery from this Here in the UK ICE cars are being rationed trying to force people into EV's , result is people not buying . U can buy a brand new 2 year old EV that has been sitting pre registered on a lot today at a massive discount . So any good sales of EV's can easily be put to pre reg cars sitting on a lot somewhere , the future looks bleak .
Well I think the UK was not that big in cars as Germany is today. If you check out the various industry branches in Germany then you find out that the automobile industry creates about 560 billion annual sales volume (260 bln alone Volkswagen!), the next biggest industry is the chemical and pharma industry which makes about 250 billion then mechanical engineering branche with 240 bln. This shows the car industry is crutial for Germany's prosperity.
But this is how the money will be made. They are public listed and can't ignore the facts. However the worker unions played their part as well ... by asking for unreseaonable payments and working hours. Now blame the management sounds a bit ridiculous to me. They have to ask themselves ... what can they do? Same need the management to look into details.
Legacy auto are not used to giving the customer what they want. And VW service costs too much their oil is the same price as gold. Can’t wait to own an ev
@@tilapiadave3234😂😂😂not this again! waking up to what petrol/diesel cars are the worse thing you could buy..that’s why closing factories old automakers and EV is booming everywhere
Another part of the truth is that VW just paid out some of the highest dividends they ever did. So it’s not like they don’t have money. They just don’t want to give it to the employees and invest in development as they should.
Dividends can be a curse for mature companies if/when a tech disruption comes along. Shareholders lose their minds when their dividends are cut - especially those who depend on them for their living expenses. Cutting dividends is often a death blow for a stock. And you know that's the last thing the C-Suite want, since stock options are a large part of the proverbial Golden Parachute.
As a turkish Origin German i say: VW made big mistake by pushing the Diesel Engine instead of looking for efficient ev Production Methodes. Germany made best ICEs and the best GEarboxes by ZF. Guess which parts missing in EVs? engines and gearbox!
You guys in Europe just know two worlds: EVs and ICEs. In China the producers listen to customer needs and best selling are long range PHEVs. Imagine 200km on battery and petrol engine for 15k Euro:) That's what Chinese companies are doing, and hiw about Volkswagen? Just EV and ICE to choose, no wonder they are in decline.
@@GallAnonim-jx2cz PHEVs are the worst of both worlds.....A very bad compromise. You have the complexity, costs, weight and maintenance of two drive trains and you are still emitting pollutants and CO2....
@@GallAnonim-jx2cz soon, no need for hybrid. Nio already has 1000km at battery swap station. How long until other brands have 1000km battery and cost comes down? Only small window of time where hybrid makes sense for some people. Window is closing..
People are starting to realize that Ev vehicles are not NetZero. The major portion of their carbon footprint is during the manufacturing of these vehicles. Add to that the cost of battery replacement after 10 to 20 years which can be almost as much as the used vehicle is worth. These vehicles because of their weight has much more wear on the tires and brake components than a similar gas vehicle. Tesla's problem with the model 3 is what to do with a used vehicle. We have yet to be impacted with soon to be flood of used electric vehicles coming to market. Then you add to that the lack of charging infrastructure here in the US and Britain for example and the electrical infrastructure to supply power to these charging stations. California has already seen the problem with rationing electricity not only for their general usage but the added demand with electric vehicles. These legacy car companies are suffering because they made the mistake of using their profits from gasoline vehicles to pay for the electric vehicle change over and then reducing the number of gas vehicles to the point that they no longer offer gasoline vehicles that people want without first finding out if electric vehicles cost of manufacturing is self-sustaining.Add to that the problems with Ford, Volkswagen and GM is all the recalls as a result of cheap electronic components and modules that fail that are supplied by China. You can also add to that the safety requirements in these new vehicles which caused the cost to balloon in each and every vehicle. A good example is the millions of airbags that they have had to replace. Then you add on the unrealistic emissions and fuel mileage standards set forth by governments. History has shown that these regulations are arbitrary at best and every time a company meets their demands they move the goal posts. As we have seen companies have tried to hide or cheat on these regulations such as Volkswagens ability to hide the true emissions output of their vehicles, which I thought was brilliant. I thought the risks outweighed the costs because you can be sure that they saved more money even after all the fines and replacement costs they still came out ahead. Henry Ford built electric cars in the early 20th century and they failed for the same reason these vehicles will fail today, range anxiety and battery replacement cost
You’re right about Diesel Gate. The problem with VW is NO ONE BUYS EV’s outside Europe. EV is a stupid idea that only Tesla does well. People buy Tesla NOT EVs. People do not buy VW EV’s. People want VW hybrids and PHEV. NOT EVs.
@@sagaciousid no, people want cool EVs with lots of features, for example in China. The VW EVs are slower than the others and the infotainment is... nothing compared to others. No emotions...
Who'd ever thought that losing access to cheap Russian gas would DE-industrialise Germany? The U.S. knew this would happen when they blew up the Nord Stream Pipeline.
Germany should never have relied on gangster russistan in the first place. Everybody warned them of the risks. If they would have doubled down on renewables in a zero-rate environment they would not be in this predicament. But the oligarch bribes were too good I guess.
any industries that are very labour-intensive are obviously going to be more competitive if they’re manufacturing in Asia. cost of living is fairly cheap there and so the wages can be lower than in Europe. That’s just the reality that the European Auto makers and an American legacy Auto have priced themselves out of that market.
Quality does not match western cars as well as cutting corners and stealing of technology is common in China. E.g. how come the new MI SV 7 looks very very similar the the Porsche? Why not facing the truth ... China has not invented anything for centuries ... they just force companies to mfr in China by adding huge taxes on import cars and force joint vendures with CN car mfr, while now complaining about a smaller tax %? If you want to be fair ... make the same. Set 100 % for all made in China cars to EU and force them to mfr locally. Than enforce joint vendures and see what China is saying. Also pls pls compare apple with apple ... their quality and after sales service is poor ... check out what Russia is facing with made in China cars. Good luck to all of us if we still believe a country cheating, stealing and counterfeit everything is great. Some more it is annoying how they behave to their neighbours. I think who still think they are such great guy deserve to get all their low quality products incl. breakdowns and delays at repair, beside used toxic chemicals and potential hazards poisoning. LOL. Have the West nothing learned about the last 30 years ...
You're even missing the other two legs of the trifecta: local raw materials make for cheaper production compared to the US, and the rapid increase in renewables is cutting electricity prices, making goods even cheaper to make. The more we fight EVs/renewables in the US, the more we hand the future global economy to China by showing we don't care to become cost-competitive. The GOP - in particular - are dead-set on handing the future to China on a silver platter in the desperate attempts to own the libs. Turns out that vengeance is a bad economic policy.
For 10 years we warned the legacy manufacturers that EVs were going to change the market. Did they listen? Of course not. They'd been building cars for more than 100 years, and they weren't going to pay attention to some African guy trying to sell electric golf carts that nobody would want to drive around in. Now they're paying a terrible price for their hubris.
It is very possible that over the coming years all western companies will not be able to work in China. This move by VW is a bitter pill for sure, but might be the smart move based on the likely looking geopolitical outlook.
Probably. But on the other hand, VW is lobbying against tariffs on Chinese cars in the EU. They have to decide where they stand, they can't have it all.
In this case, the employees caused the problem. Herbert Diess mandated VW to pivot to electric. The union pushed him out in 2022 to go back to gas vehicle. Employees only looked at short term gain and sacrafice long term loss. Don't believe in union lies. Employee are no better at long term planning. Only the best CEO like Elon care about the long term. Everyone hates Elon. Maybe because he is successful. Funny.
I believe it's a consolidation of their ICE factories in China, and they will probably follow-up with building new factories specifically for EVs which are more automated and streamlined. Shutting obsolete factories is the fastest way to cut loss. Painful, yes. But it has to be done.
Do you even know that in China best selling cars are not EVs but EREVs? Google what's that because this category doesn't even exist in Europe. Simply said long range PHEV.
Everything I've read says EV sales in Europe are way down. Reuters reports they're down 44% in August. Bloomberg reports EV sales are struggling in America as well.
"August" sales are normal. August 2023 sales were an outlier - multiple soon-expiring incentives resulted in a ridiculous spike in sales. Bloomberg NEF is reliable: rest is advertising-driven clickbait.
Most of those articles are super misleading, and framed in the most catastrophic way possible to generate clicks so their ad revenue goes up. In reality, global auto sales are about 20% EVs currently, up from 2023's 18%. There are markets where EVs are down, but that is *MORE* than made up for by the markets that are up (and which conveniently do not exist according to Reuters, Bloomberg, et. al). The real critical puzzle piece is that China is now over 50% EVs. Given that most US, Japanese, and German automakers make half their revenue inside China, that means there is no longer any choice but to prioritize EVs for any automaker who wishes to continue to exist. A 50% hit to revenues is a company-ending one.
Basically, this is a good sign, even though Europe is currently facing many short-term challenges and a significant paradigm shift. It is only through crises that we can innovate, and innovation, along with staying up-to-date, is essential to being part of the future.
10 yrs down the road, we will all be riding in Chinese electric vehicles that were put together locally from crates shipped from the Chinese fabrication factory. The comparison between Chinese to German quality in the ev market sees the Chinese win.
@@grahamkearnon6682 I was yesterday at my local BYD dealer and I must admit I was positively shocked! The quality is top-notch and by looking at the technology it is way better than Mercedes, BMW or Audi! The BYD Seal U Hybrid is a game changer. I got it offered 33k and with 4x4 it would be around 43k I would have taken it but waiting still for the trailer hitch wich should be available in some month. I think everyone should check out the new chinese cars and make up their own opinion about the market situation. And I am really stunned by the whole market shift to China. I've seen it already on the smartphone market and now the car market got its turn. In about 5 years "Made in China" will be equally stand for quality as it used to be "Made in Germany" regarding technology.
It cracks me up that Russia is now the biggest LNG supplier to Europe. The pipeline was destroyed, and now Europe is paying much more for the same Russian gas. I’ll never understand that plan, unless it was to intentionally make it harder for Europe to compete in the global economy.
@@crinklecut3790 It always was. Basically Germany's industry success was build on cheap Russian gas (and cheap atom energy). To bad it's all gone now...
True, but it's even worse than that. Those tariffs give automakers a false sense of security to keep slow-walking EVs, giving China even more time to get ahead. Ultimately, the tariffs only make it even more likely that US, Japanese, and German automakers go bankrupt in the end.
@@AMortalDefiant Here's what may be the case. The tariffs will give the high paid execs in legacy companies a few more years of pulling down huge salaries. And those execs will bail just before the companies go under. Some sucker will get the blame for being in charge when the sheriff serves the eviction notice.
@@AMortalDefiant yup look at the last 4 years and now look at the NEXT 4 - 8 years of Chinese cars they will be advancing with or without "western" markets and they will keep "leaking" into western markets and consumers will eventually DEMAND to be able to buy them over there "local" inferior and far more expensive offerings protectionism will only raise prices as they are the ONLY game in town
USA is next on the China hit squad list . The United States-Mexico-Canada (USMCA) Free Trade Agreement is fast becoming a free trade agreement for the world, whereas any multinational with a presence in Mexico can set up shop and make the U.S. its number one target. ⚠️China is doing that now. How will Detroit fare against China offering Americans better quality and lower priced cars? The majority of US car buyers under 40YO have no issues buying a Chinese car.
For the most part, maintenance on an EV is non-existent. I know people with 2017 Teslas who have never had any maintenance yet aside from wiper blades and tires. That's just a byproduct of taking a vehicle from 2000+ moving parts down to only a dozen moving parts. All the failure points disappear. You don't need oil changes if you don't use oil, etc. Studies show that the average EV driver saves ~$5000/year in fuel and maintenance combined over an ICE.
@@AMortalDefiant LESS maintenance BUT not ZERO - there is OIL and FILTERS to change but without combustion happening there is far LESS contamination plus far LOWER temps the oil LASTS far longer and even Teslas have "normal car parts" like suspension ball joints and shocks that all need replacing when worn out
A story about Kodak, apart from the first digital camera's from Kodak, Kodak invented the first Digital film production system called Cineon. Even that didn't save them. Building EV's is really difficult.
It didn't save Kodak because they decided to not be a digital camera company. Kodak made the first digital SLR and had a line of decent compact digital cameras. Then some genius decided that Kodak would do better in the printing business. They didn't see that people were largely going to quit printing their pictures but looking at them on screens.
USA is next on the China hit squad list . The United States-Mexico-Canada (USMCA) Free Trade Agreement is fast becoming a free trade agreement for the world, whereas any multinational with a presence in Mexico can set up shop and make the U.S. its number one target. ⚠️China is doing that now. How will Detroit fare against China offering Americans better quality and lower priced cars? The majority of US car buyers under 40YO have no issues buying a Chinese car.
I prefer when the cars are just slightly more complex than motobikes. The worst case scenario is very complex and expensive cars (like modern Mersedes or Audi or BMW). The cars should be simple and cheap! Easy to repair! Please.
It's over ....Europe EV sales were down 43.9% in August 2024 vs August 2023. Germany EV sales in August were down 70% vs August 2023. Rising popularity of EV's ? ,,,,not in Europe ,USA or Australia.
Global EV sales are reaching 25% of the new car market. You can cherry pick a month or a few weeks in one part of the world and try to say something meaningful. But it isn't meaningful.
@@tilapiadave3234 Well, Dave, I'm sorry you find actual facts to be inconvenient. Just make up some stuff that makes you happy. And don't run with scissors.
My own experience in the car business which went on for about 60 years before I got into the real estate business. I can assure you these big corporations take a hard look at you when you get in your 60s. They don’t see an upside to anybody in their 60s and the law is pretty much ignored. They find a way to get rid of you one way or the other so you have to be a gig worker I always acted as a gig worker because I knew that they never cared so since somebody offered me more money I moved on I’m glad I did, as you can see they really don’t care.
Hard to tally that with battery EV's only accounting for 18% of new car sales and that seems to be fairly static. I would have thought they would have a few years yet. Especially given all the negative publicity around EV's relating to depreciation, repair costs, insurance and so on.
WHAT…! If these closures are going ahead… who, what or where are their vehicles going to be made? Let alone the monetary losses of shutting a large factory on the company’s bottom line. This is a period of incredible contraction that is not being talked about by the media.
Worked for a company that reasoned like VW did. Let one company do 80% of something very specific and the last 20% we'll do ourselves. The VW name has been in the news for a bit for various reasons but it is now the consumers (often times very brand loyal) that are waving the red flags.
The hubris of the large legacy car manufacturers has lead them to this. They thought that they could easily make the switch to EVs no problem. Now they're struggling on life support. They were warned years ago, this would be the result.
You should play a 4sec clip of the Bloodhound Gang and try to work in "The Roof is on fire" as amny times as you possibly can. We don;t need to water let the VW burn - burn...
A seldom-mentioned point is that all legacy autos are being led by salaried employees, including the CEOs themselves. Throughout their careers, they had always been assigned certain entities or portfolios that they took over and then continue to run well or even improve upon. They are professional managers, not entrepreneurs. So even if deep down these CEOs knew since long ago that their companies had to switch to EVs, they simply couldn't do it because they lack the necessary psyche. In Toyota's case, even though Akio himself can be regarded as an owner, consider this: how often in human history has a great achiever in any field had a grandchild who was equally outstanding in the same field? Almost never. On the other hand Tesla and many of the Chinese EV manufacturers such as BYD, Li Auto, Geely, XPeng or even Xiaomi are all still being driven hard by their founders/owners.
Union in Germany are furious, but they are part of the problem with all the benefits that they asked so many years and what made the company not competitive.
Kodak was a known dead man walking. Digital cameras had been taking off and then the cameras went into phones. We are not there for VW or any ICEs, yet. I'm trying to figure out European August car sales. While gasoline sales plummeted 17%, Diesel down 26%, and EV sales were down 36%. BEVs dropped to 14% of the EU market. I didn't realize the EU was looking at punitive CO2 standards in 2025. I'm a fan of BEVs, but not if done by economically punitive methods. Ironically, this video had a VW advertisement for me at the end.
You know something, this could not happen to a more deserving bunch of corporations. Complete failure to plan for the future. They tried to ignore all this stuff and just hope it was a passing fad. Fools.
One thing that I dont like about VW is all the add on costs, with many chinese cars there are so many features added as standard. They have to change their business model and be more honest.
Misinformation on Jeep: GAC-FAC a Joint Venture between Stellantis and Guangzhou Automobile Group Co., Ltd. files for bankruptcy in China. Not Jeep or Stellantis itself.
that IS JEEP of China as stated same as GM America went bankrupt on 08 BUT GM cars Canada NEVER went bankrupt same with Holden cars Australia all DIVISIONS
Software has now become a defining feature of BEVs, and in this area, VW has failed compared to most Chinese automakers and, of course the leader, Tesla
It's not over till it's over, get positive!!! A sale is a sale!!! Get real!!! In performance, there's a saying, it's not over till the f-t lady sings!!! I sold and fitted car tyres, when I was younger, I learned every sale counts!!!! Don't give up, be part of the electric revolution!!! Just do it!!!
As a VW ID.4 owner, I am terrifed at the thought of VW going belly up. As Fisker owners know all too well, if the company goes under, software support and spare parts will eventually be unavailable, and we'll find ourselves to be the proud owners of a 4,600 lb. paperweight. Well, to be honest, I am mostly worried about the spare parts and repairs side of things since the software support has sucked from the very beginning.
I have a new Jetta that needed $10,000 in parts the first year and the engine needed to be taken apart to put in new gaskets that were on back order because they couldn’t keep up with the number of engine leaks.
Your VW Sounds like my Ford, water pump replacement, Parts: $400usd Labor $2700 and it took over a month ………USA is next on the China hit squad list . The United States-Mexico-Canada (USMCA) Free Trade Agreement is fast becoming a free trade agreement for the world, whereas any multinational with a presence in Mexico can set up shop and make the U.S. its number one target. ⚠️China is doing that now. How will Detroit fare against China offering Americans better quality and lower priced cars? The majority of US car buyers under 40YO have no issues buying a Chinese car.
EVs are a total disruptor. We see it in every industry eventually as technology develops. You either change (like Netflix who really invested the streaming model moving away from sending DVDs out) or die (like Blockbuster). These legacy, mainly German EV makers thought they had an unassailable position and didn’t move quickly enough, and didn’t reduce costs enough. Toyota may really suffer soon. Compare to a company like Renault.
100%. You have to wonder what management was thinking. But they are not the first to keep milking the cash cow and only realising it's dying when it's already stone cold dead.
@@MultiMenvafan What there were thinking is that typical auto exec only stays at a company for less than 10 years. They knew that they could keep milking profits and personal bonuses at the expense of the life of the companies they work for, then deploy their golden parachutes as the companies crash and burn. They have no real loyalty to those brands; they are just a stepping stone to buying another personal jet, etc. Then they waltz on to their next multi-million-dollar salary at another company. No skin off their back.
I'm certain it will happen. It is good news for everyone except for the OPEC+ mafia and legacy dinosaur-auto. And China can do it all within the framework of WTO claiming it is for the sake of climate and environment.
Our linear systems of observation and control do not understand technoligical convergence, disruption and exponential growth. The paradigm shifts result in economic and social disruption without control. Tesla sits at several tech convergences..
Tesla Shanghai is a HUGE factory, one of the largest worldwide @ 1M vehicles/Year. No bells and whistles, just very efficient large scale production...and it ramped to full production very quickly! Meanwhile at Tesla TX they have spent several times more $$$ to build it...and it is STILL under construction, with only a tiny fraction of the vehicle output of the Shanghai plant. Net result for Tesla....they are making good profit on every vehicle made in Shanghai, and they are LOSING money on EVERY vehicle made in TX.
While those things are true, that's not really the key observation that should be taken. As their Texas factory scales, it will gain similar cost advantages to their Shanghai plant, which had almost a half decade head start. Ramping auto factories typically takes 2-3 years. Focusing on their current, limited production (compared to their total end capacity) tells us next to nothing. As they have much more land to grow into at Texas, ultimately, their output could even dwarf the Shanghai factory, making it even more capital efficient. Scale is one of the key drivers of efficiency. It's also a very apples-to-oranges comparison, as Shanghai was originally a copy-paste of the Fremont design (except arranged linearly for more efficiency), then added improvements over time. On the other hand, Austin is largely involved in "new" technologies like 4680s and CT; neither of which are fully-scaled products. Apples and oranges.
EV EV sales are on a downward spiral only thing keeping them going is government subsidies people don't want them they are crap and depreciate like a flying brick
The ACEA have today released August's sales figures for the EU, EFTA & UK. The total market is down 16.5% compared to August 2023. BEV sales -36%, PHEVs -22%, Petrol -18%, Diesel -26%. The only growth is in Hybrids (including mild hybrids) which are +8%. YTD, BEVs -5.5%, PHEVs -1.7%, Petrol -3.9%, Diesel -10.2%. Again, only Hybrids are up at +20.3%.
@@MultiMenvafan Yep, as scale or ICE falls of a cliff, that also affects scale for hybrids, which are dependent on ICE to exist. So, we'll first see ICE prices skyrocket to offset lost sales, followed shortly thereafter with skyrocketing PHEV prices, until both are completely unaffordable. Conversely, as EVs keep scaling, their prices will keep coming down in accordance with Wright's Law. This was all super predictable to any of use who have been paying even a sliver of attention these past 10 or so years.
good work mate... lets clean up the air quality and get healthy.. V Lung cancer in young nonsmokers is on the rise: Uncovering the cause;vehicle exhaust. What are the symptoms of lung cancer in nonsmokers? mostly none...Car Exhaust contains over 40 poisons that go into our Lungs Blood.. And Brain..
High interest environment and recession yes, but hardly market saturation. People postpone buying new cars in such and environment, that's only natural. I believe EV demand will recover when interest rates fall and recession ends. Fossil will just keep losing market share to irrelevance.
Not really. Automotive development cycles are 4-7 years. There are some years when it seems like nothing is happening because everyone is building factories or designing EVS, and there are years that go comparatively apeshit. It's not a linear progression. It comes in starts and fits due to the long development cycle. From 2018 to 2019 was only a 9% increase in EVs, which was followed by two of the highest-growth years on record (one of which was over 100% growth YOY). That coincided with Tesla opening their Berlin factory and VWAG ramping their first EV factories. We're just in one of the "slow" years. The overall trajectory is still accelerating. In 2008, global EV share was ~0% In 2018, global EV share was 2% In 2023, global EV share was 18% YTD, global EV share is ~20% The growth is still there, we are just at a period when factories are going up, rather than ramping output.
Of course the European governments could save their legacy Automakers if they simply reversed the impending ban on ICEs. Simply impose a 5l/100km limit and allow them to continue.
The fact that Golf has almost the same Design for every single generations is so crazy. Especially the interiors looks almost identical on every single generations for decades! Because of Tesla and Chinese cars they have updated Golf's interior with bigger screen and some ambient lighting to stay relevant!
I think one of the problems facing the EV adoption in the US is that of body type. The sedan has been a low profit dying body style in the US being surpassed in favor of SUVs and here in Texas Pickups (UTEs to you). The profit for legacy auto has come from big SUVs and Pickups and they are not set up to compete and make a profit in the sedan market weather ICE or EV. We see this problem with Tesla moving to non-luxury models 3 and Y. The CyberWTF is not going to be a solution.
I wish they could bring back Herbert Diess. He was more focused on electric. There are nice things about Volkswagen vehicles if the software could be improved and efficiency of the motors was improved. I heard Lucid Motors is considering licensing their motors. They have higher efficiency motors. They almost have a Toyota problem by creating electric vehicles with lower range and higher prices. It is better to do something the best instead of half trying.
Running at 56 % manufacturering not great but pays the bills What's behind closings is its not going to get better and alot faster losing market share.
@@FrunkensteinVonZipperneck ty my thoughts because the massive size shut down say half the plant could be deal breaker but no thinking goes into building the plant for exactly what does happend from time to time this time might be bigger than norm still......
Its a problem caused by management and unions together. Management failed to understand that quick and efficient Research is a must to succeed. And the Unions did not understand that Labor is a major cost factor and if a vehicle is not competitive in cost it will eventually be phased out. China has a big advantages. They throw tons of money into R&D and they build new factories that utilize automation as much as possible.
Corporations need to reform their methods of choosing their leadership. Over and over corporate leaders are making decisions that are terrible for their companies, their workers and their investors. Change is difficult but leaders must have the courage to change if they are to truly lead. Not just do status quo and collect a big check.
While I agree it is also a complex question. Herbert Diess got fired at least in part for being too visionary. The owners and stakeholders in VW had it coming, it's not only leadership.
That's one of the many downsides to an economic system to prioritizes making money over everything else. We like to idolize capitalism, but it's just a tool like any economic system; it can be used wisely, or poorly.
Real economy is by real investment and reaction. Once they leave , a dark pic is waiting ahead. Trans moving is not investment creation . It does not mean anything about economy but a mere number, which shall be saturated ceased.
SAIC isn't owned by the state, it is owned by Municipal gov. of ShangHai... State owns three factories you may have heard of: FAW in ChangChun, DongFeng in WuHan, Chang'An in ChongQing
@@mindaza0 What do you mean with "hydro" ....water? Because hydro is water... But building engines with water fuel might be a environment friendly solution....
Here’s the USA Rivian Problem. The United States-Mexico-Canada (USMCA) Free Trade Agreement is fast becoming a free trade agreement for the world, whereas any multinational with a presence in Mexico can set up shop and make the U.S. its number one target. ⚠️China is doing that now. How will Detroit fare against China offering Americans better quality and lower priced cars? The majority of US car buyers under 40YO have no issues buying a Chinese car.
@@tilapiadave3234 Any single article about it does mention that ANY western brand that produces in China has access to same subsidies and profits from them. Thats one of reasons why Tesla cost so little in China in comparision to rest of the world and could participate in price war going on there.
Context matters. The sharp decrease was due to massive cuts to subsidies. It's disingenuous to infer that that was just due to lack of demand. Elsewhere, EVs are still growing. YTD, we are about 20% EVs globally, up from 18% last year. The key number is China being over 50% EVs, as most global automakers make half their revenues inside China. That means they no longer have the option to slow-walk EVs. It's either make EVs ASAP, or lose half their revenues, and go out of business.
@@AMortalDefiant exactly. remove subsidies, and it no longer makes financial sense. no demand. Nobody want them. Those that do already own them. Ok, sure, the lifespan of EV car is much shorter, because the battery life is kinda woeful. ANd it not make sense to replace the battery because of the very high cost, and you still have a beat up old car. It not make sense
@@simpromovie America is not the world. That's not how people in the biggest car market nor the fastest growing are using PHEVs since there are no incentives
@@jayceh Maybe. But I did not see any real advantage compared to a BEV. I am so happy that I get rid of this combustion engine and all that is related to it...
@@simpromovie some people need that peace of mind. 2,000km range also let's you go on road trips without checking for charging stations. Some people like that. Freedom of choice. That's a nice thing.
China has invested in engineering to build these cars which legacy hasn't done because they were more interested in investors making money. The wages of the workers are not the issue here when you look at the profits of these companies. This started in 70s with GE shutting down factories and moving to foreign countries and other companies followed suit and now they are paying the price for allowing it to happen but at the same time blame the workers who are the middle class and without them who buys anything. China's problem is that it relies on selling out of the country to keep people working but with a population in decline because of their one child policy so It's now or never for them. Younge people are rebelling in China and are dropping out of the work environment and XI does not know what to do about it.
City People want scooters now, not cars. VW could have produced them but choose not to. Low demand means it's not required to produce as much as before, leading to layoffs.
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Remember Herbert Deiss? He warned VW again and again what would happen and they fired him. You are reaping what you have sowed.
Galatian6:7-10.
I remember Herbert Diess. Brave man, but he didn't address the big problem in Germany: the Unions that block every change.
What did he warn about?
@@hardyvonwinterstein5445Nonsense. A clear diversion from the leadership in german companies being utter morons.
@@Siculo.77 He said, 3 years ago, that if they failed to rapidly transition to EV, they would have to lay off 30k workers in the near future. He got fired, and the unions spearheaded this. Today, his successor, having curtailed the EV initiative, is now saying the same.
We went through this long term decline of our car industry in the UK in the 1970s. We didn’t invest in innovation and were riddled with Unions that just couldn’t evolve and compromise.
Now it’s Germany’s turn.
But Germany bought into the EV dream , they spent a fortune on trying to
switch to produce EV's
People now do not want EV's
Ive just checked EV sales in Aug are DOWN 70% in Germany
All VW cash reserves have gone into EV development that people are
rejecting , thats the root of the problem
France EV sales have declined 45%
I doubt if there will be a recovery from this
Here in the UK ICE cars are being rationed trying to force people into
EV's , result is people not buying . U can buy a brand new 2 year old
EV that has been sitting pre registered on a lot today at a massive
discount . So any good sales of EV's can easily be put to pre reg cars
sitting on a lot somewhere , the future looks bleak .
Before that was the motorcycle industry which the Uk dominated until Japan woke up!
Unions simply did not evolve. Their behavior remains the same as it was in the 19th century.
There’s a time for everything. Maybe in coming decades its Chinas turn. It could be good for Germany to do something different than cars and chemicals
Well I think the UK was not that big in cars as Germany is today. If you check out the various industry branches in Germany then you find out that the automobile industry creates about 560 billion annual sales volume (260 bln alone Volkswagen!), the next biggest industry is the chemical and pharma industry which makes about 250 billion then mechanical engineering branche with 240 bln. This shows the car industry is crutial for Germany's prosperity.
Those companies paying too much tention on their stock markets rather than it's customers and products.
that’s how shareholder capitalism works
@@Western_DeclineSounds dumb
But this is how the money will be made. They are public listed and can't ignore the facts. However the worker unions played their part as well ... by asking for unreseaonable payments and working hours. Now blame the management sounds a bit ridiculous to me. They have to ask themselves ... what can they do? Same need the management to look into details.
@@Sabsch-ow4tp money is made by satisfying customers. Nothing else is sustainable
@@Western_Decline "that’s how shareholder capitalism FAILS" ... fixed it for you
Blackberry and Nokia were very good phones. Then came iPhone.
Volkswagen and Mercedes were very good cars. Then came Tesla, BYD and Xpeng.
iPhone only (Tesla )
Legacy auto are not used to giving the customer what they want. And VW service costs too much their oil is the same price as gold. Can’t wait to own an ev
VW sacked their previous CEO and devoted themselves back to the ICE arena.
VW uses customers as guinea pigs, while asking a premium price for their horse manure.
16 golf truning on app service costs 430 euro , which is available free in modern car
@@tilapiadave3234😂😂😂not this again! waking up to what petrol/diesel cars are the worse thing you could buy..that’s why closing factories old automakers and EV is booming everywhere
@@tilapiadave3234 hahahahaahhaahahahahahahahahha, and Germany is on planet MArs, right?
Another part of the truth is that VW just paid out some of the highest dividends they ever did. So it’s not like they don’t have money. They just don’t want to give it to the employees and invest in development as they should.
Preparing to go bankrupt in 2009, GM paid out $36Billion in dividends to shareholders. Lenders were left with nothing.
VW has a +200B debt
Dividends can be a curse for mature companies if/when a tech disruption comes along. Shareholders lose their minds when their dividends are cut - especially those who depend on them for their living expenses. Cutting dividends is often a death blow for a stock. And you know that's the last thing the C-Suite want, since stock options are a large part of the proverbial Golden Parachute.
As a turkish Origin German i say: VW made big mistake by pushing the Diesel Engine instead of looking for efficient ev Production Methodes.
Germany made best ICEs and the best GEarboxes by ZF. Guess which parts missing in EVs? engines and gearbox!
You guys in Europe just know two worlds: EVs and ICEs. In China the producers listen to customer needs and best selling are long range PHEVs. Imagine 200km on battery and petrol engine for 15k Euro:) That's what Chinese companies are doing, and hiw about Volkswagen? Just EV and ICE to choose, no wonder they are in decline.
@@GallAnonim-jx2cz PHEVs are the worst of both worlds.....A very bad compromise. You have the complexity, costs, weight and maintenance of two drive trains and you are still emitting pollutants and CO2....
@@GallAnonim-jx2cz soon, no need for hybrid. Nio already has 1000km at battery swap station. How long until other brands have 1000km battery and cost comes down? Only small window of time where hybrid makes sense for some people. Window is closing..
@@GallAnonim-jx2cz You are too modest. The range of a BYD Sealion is 2000 km!
People are starting to realize that Ev vehicles are not NetZero. The major portion of their carbon footprint is during the manufacturing of these vehicles. Add to that the cost of battery replacement after 10 to 20 years which can be almost as much as the used vehicle is worth. These vehicles because of their weight has much more wear on the tires and brake components than a similar gas vehicle. Tesla's problem with the model 3 is what to do with a used vehicle. We have yet to be impacted with soon to be flood of used electric vehicles coming to market. Then you add to that the lack of charging infrastructure here in the US and Britain for example and the electrical infrastructure to supply power to these charging stations. California has already seen the problem with rationing electricity not only for their general usage but the added demand with electric vehicles. These legacy car companies are suffering because they made the mistake of using their profits from gasoline vehicles to pay for the electric vehicle change over and then reducing the number of gas vehicles to the point that they no longer offer gasoline vehicles that people want without first finding out if electric vehicles cost of manufacturing is self-sustaining.Add to that the problems with Ford, Volkswagen and GM is all the recalls as a result of cheap electronic components and modules that fail that are supplied by China. You can also add to that the safety requirements in these new vehicles which caused the cost to balloon in each and every vehicle. A good example is the millions of airbags that they have had to replace. Then you add on the unrealistic emissions and fuel mileage standards set forth by governments. History has shown that these regulations are arbitrary at best and every time a company meets their demands they move the goal posts. As we have seen companies have tried to hide or cheat on these regulations such as Volkswagens ability to hide the true emissions output of their vehicles, which I thought was brilliant. I thought the risks outweighed the costs because you can be sure that they saved more money even after all the fines and replacement costs they still came out ahead. Henry Ford built electric cars in the early 20th century and they failed for the same reason these vehicles will fail today, range anxiety and battery replacement cost
VW's problems started with Diesel Gate. That fiasco cost them big bucks. It's been downhill since. And now it's their late entry into EVs.
You’re right about Diesel Gate. The problem with VW is NO ONE BUYS EV’s outside Europe. EV is a stupid idea that only Tesla does well. People buy Tesla NOT EVs. People do not buy VW EV’s. People want VW hybrids and PHEV. NOT EVs.
VW's problem starts with the cost structure and the influece of German politics in Lower Saxony on the company which can veto any decision..
@@sagaciousid no, people want cool EVs with lots of features, for example in China. The VW EVs are slower than the others and the infotainment is... nothing compared to others. No emotions...
Its over and out for VW
vw was saved by chinese market 35 years ago . so their demise was delayed by 35 years .
Yes, the Triumph moment for VW now
Who's gonna pay VW's +200B debt?
@@larryc1616
Possibly no one. The lenders may well get stiffed.
@@larryc1616the germans
They should have listened to Herbert Deiss AND THE ELECTRIC VIKING ❤️
Who'd ever thought that losing access to cheap Russian gas would DE-industrialise Germany? The U.S. knew this
would happen when they blew up the Nord Stream Pipeline.
At last, a comment made by someone with a brain-cell.....👍👍
That and opening their borders wide open to all and sundry.
Germany should never have relied on gangster russistan in the first place. Everybody warned them of the risks. If they would have doubled down on renewables in a zero-rate environment they would not be in this predicament. But the oligarch bribes were too good I guess.
We have a senior politician in the UK who is doing everything in his power to close down ALL gas, oil and coal production and succeeding.
@@chazsach6594 smart man. It will all be out of business in 10 years anyway.
Most people cannot afford new cars anymore.
any industries that are very labour-intensive are obviously going to be more competitive if they’re manufacturing in Asia. cost of living is fairly cheap there and so the wages can be lower than in Europe. That’s just the reality that the European Auto makers and an American legacy Auto have priced themselves out of that market.
Innovation
Not true. Most of the EVs in China are made by robots. Human hands are needed mainly for quality control and marketing.
Quality does not match western cars as well as cutting corners and stealing of technology is common in China. E.g. how come the new MI SV 7 looks very very similar the the Porsche? Why not facing the truth ... China has not invented anything for centuries ... they just force companies to mfr in China by adding huge taxes on import cars and force joint vendures with CN car mfr, while now complaining about a smaller tax %? If you want to be fair ... make the same. Set 100 % for all made in China cars to EU and force them to mfr locally. Than enforce joint vendures and see what China is saying. Also pls pls compare apple with apple ... their quality and after sales service is poor ... check out what Russia is facing with made in China cars. Good luck to all of us if we still believe a country cheating, stealing and counterfeit everything is great. Some more it is annoying how they behave to their neighbours. I think who still think they are such great guy deserve to get all their low quality products incl. breakdowns and delays at repair, beside used toxic chemicals and potential hazards poisoning. LOL. Have the West nothing learned about the last 30 years ...
@@dennyliu7494 Owner Zhejiang Geely Holding (39.94%) Proper Glory Holding (26.2%)
Number of employees 60,000 (2023)
You're even missing the other two legs of the trifecta: local raw materials make for cheaper production compared to the US, and the rapid increase in renewables is cutting electricity prices, making goods even cheaper to make. The more we fight EVs/renewables in the US, the more we hand the future global economy to China by showing we don't care to become cost-competitive. The GOP - in particular - are dead-set on handing the future to China on a silver platter in the desperate attempts to own the libs. Turns out that vengeance is a bad economic policy.
For 10 years we warned the legacy manufacturers that EVs were going to change the market. Did they listen? Of course not. They'd been building cars for more than 100 years, and they weren't going to pay attention to some African guy trying to sell electric golf carts that nobody would want to drive around in. Now they're paying a terrible price for their hubris.
It is very possible that over the coming years all western companies will not be able to work in China. This move by VW is a bitter pill for sure, but might be the smart move based on the likely looking geopolitical outlook.
Probably. But on the other hand, VW is lobbying against tariffs on Chinese cars in the EU. They have to decide where they stand, they can't have it all.
Yup. When China invades Taiwan all investment will be lost anyway. But I'm sure that won't happen. Like when Putin would never invade Ukraine.
Rumour has it that Nio is considering taking over the Audi factory in Belgium , but of course Sam hates Nio to the core
Too bad employees will be fired, because the management and marketing department of VAG is destroying the VW brand...
In this case, the employees caused the problem. Herbert Diess mandated VW to pivot to electric. The union pushed him out in 2022 to go back to gas vehicle. Employees only looked at short term gain and sacrafice long term loss. Don't believe in union lies. Employee are no better at long term planning. Only the best CEO like Elon care about the long term. Everyone hates Elon. Maybe because he is successful. Funny.
State of Lower Saxony and the Unions destroyed VW because it's basically the same problem since the 90s
VW selling their EVs in china is like getting a girl at the brad pitt lookalike contest.
I believe it's a consolidation of their ICE factories in China, and they will probably follow-up with building new factories specifically for EVs which are more automated and streamlined. Shutting obsolete factories is the fastest way to cut loss. Painful, yes. But it has to be done.
Do you even know that in China best selling cars are not EVs but EREVs? Google what's that because this category doesn't even exist in Europe. Simply said long range PHEV.
I remembered most if not all taxies were Jetta in 2009, those were the days...
Everything I've read says EV sales in Europe are way down. Reuters reports they're down 44% in August. Bloomberg reports EV sales are struggling in America as well.
"August" sales are normal. August 2023 sales were an outlier - multiple soon-expiring incentives resulted in a ridiculous spike in sales. Bloomberg NEF is reliable: rest is advertising-driven clickbait.
Most of those articles are super misleading, and framed in the most catastrophic way possible to generate clicks so their ad revenue goes up. In reality, global auto sales are about 20% EVs currently, up from 2023's 18%. There are markets where EVs are down, but that is *MORE* than made up for by the markets that are up (and which conveniently do not exist according to Reuters, Bloomberg, et. al). The real critical puzzle piece is that China is now over 50% EVs. Given that most US, Japanese, and German automakers make half their revenue inside China, that means there is no longer any choice but to prioritize EVs for any automaker who wishes to continue to exist. A 50% hit to revenues is a company-ending one.
Globally, EVs now make up about 25% of all new car sales.
ALL car sales are WAY down GLOBALLY and EVs are down LESS so they are "gaining" market share
Basically, this is a good sign, even though Europe is currently facing many short-term challenges and a significant paradigm shift. It is only through crises that we can innovate, and innovation, along with staying up-to-date, is essential to being part of the future.
10 yrs down the road, we will all be riding in Chinese electric vehicles that were put together locally from crates shipped from the Chinese fabrication factory. The comparison between Chinese to German quality in the ev market sees the Chinese win.
I here such mantra-words during every crisis, and the next crisis will come again and will be more stronger.
@@grahamkearnon6682 I was yesterday at my local BYD dealer and I must admit I was positively shocked! The quality is top-notch and by looking at the technology it is way better than Mercedes, BMW or Audi! The BYD Seal U Hybrid is a game changer. I got it offered 33k and with 4x4 it would be around 43k I would have taken it but waiting still for the trailer hitch wich should be available in some month. I think everyone should check out the new chinese cars and make up their own opinion about the market situation. And I am really stunned by the whole market shift to China. I've seen it already on the smartphone market and now the car market got its turn. In about 5 years "Made in China" will be equally stand for quality as it used to be "Made in Germany" regarding technology.
It cracks me up that Russia is now the biggest LNG supplier to Europe. The pipeline was destroyed, and now Europe is paying much more for the same Russian gas. I’ll never understand that plan, unless it was to intentionally make it harder for Europe to compete in the global economy.
@@crinklecut3790 It always was. Basically Germany's industry success was build on cheap Russian gas (and cheap atom energy). To bad it's all gone now...
I learn more from you than all western media combined
I'm 62 and have NEVER in my life ever considered VW as a car brand I would buy.
I've got a mk4 GTI, and it's it's a great car!
可以尝试中国汽车
I'm 68 and the last VW I owned was air cooled and 6 volt. No power, dim lights, hard to start, and very cold in the winter. Barbaric little car.
@@TheWwong Ahh… happy days 🙂
70% of BYD production and sale is Hybrid power trains. And overseas demand for BYD hybrid is going to be larger for Hybrid as well.
That's the only way they have to prolonge their life!! and not going bankrupt immediately!!
VW group could have prospered, if they did not sack their previous CEO who believed in the EVs.
Tariffs in Europe and the US are just putting off the inevitable. All legacy manufacturers were too slow to bring EVs to market.
True, but it's even worse than that. Those tariffs give automakers a false sense of security to keep slow-walking EVs, giving China even more time to get ahead. Ultimately, the tariffs only make it even more likely that US, Japanese, and German automakers go bankrupt in the end.
@@AMortalDefiant
Here's what may be the case. The tariffs will give the high paid execs in legacy companies a few more years of pulling down huge salaries. And those execs will bail just before the companies go under. Some sucker will get the blame for being in charge when the sheriff serves the eviction notice.
@@AMortalDefiant yup look at the last 4 years and now look at the NEXT 4 - 8 years of Chinese cars they will be advancing with or without "western" markets and they will keep "leaking" into western markets and consumers will eventually DEMAND to be able to buy them over there "local" inferior and far more expensive offerings
protectionism will only raise prices as they are the ONLY game in town
The future is hybrid.
Not EV.
USA is next on the China hit squad list . The United States-Mexico-Canada (USMCA) Free Trade Agreement is fast becoming a free trade agreement for the world, whereas any multinational with a presence in Mexico can set up shop and make the U.S. its number one target. ⚠️China is doing that now. How will Detroit fare against China offering Americans better quality and lower priced cars? The majority of US car buyers under 40YO have no issues buying a Chinese car.
My sister bought a 2021 WV EV and is happy. I think that it is easier and cheaper to get repaired than more optimized EV's😊
For the most part, maintenance on an EV is non-existent. I know people with 2017 Teslas who have never had any maintenance yet aside from wiper blades and tires. That's just a byproduct of taking a vehicle from 2000+ moving parts down to only a dozen moving parts. All the failure points disappear. You don't need oil changes if you don't use oil, etc. Studies show that the average EV driver saves ~$5000/year in fuel and maintenance combined over an ICE.
@@AMortalDefiant LESS maintenance BUT not ZERO - there is OIL and FILTERS to change but without combustion happening there is far LESS contamination plus far LOWER temps the oil LASTS far longer
and even Teslas have "normal car parts" like suspension ball joints and shocks that all need replacing when worn out
Interesting comment about Kodak, your right legacy Auto is finished.
A story about Kodak, apart from the first digital camera's from Kodak, Kodak invented the first Digital film production system called Cineon. Even that didn't save them. Building EV's is really difficult.
It didn't save Kodak because they decided to not be a digital camera company. Kodak made the first digital SLR and had a line of decent compact digital cameras. Then some genius decided that Kodak would do better in the printing business. They didn't see that people were largely going to quit printing their pictures but looking at them on screens.
USA is next on the China hit squad list . The United States-Mexico-Canada (USMCA) Free Trade Agreement is fast becoming a free trade agreement for the world, whereas any multinational with a presence in Mexico can set up shop and make the U.S. its number one target. ⚠️China is doing that now. How will Detroit fare against China offering Americans better quality and lower priced cars? The majority of US car buyers under 40YO have no issues buying a Chinese car.
I prefer when the cars are just slightly more complex than motobikes. The worst case scenario is very complex and expensive cars (like modern Mersedes or Audi or BMW). The cars should be simple and cheap! Easy to repair! Please.
Electric cars (and motorcycles) are real simple. Easiest repair is no repair!
It's over ....Europe EV sales were down 43.9% in August 2024 vs August 2023.
Germany EV sales in August were down 70% vs August 2023.
Rising popularity of EV's ? ,,,,not in Europe ,USA or Australia.
In August it was set tariffs on Chinese manufacturers, too. MG4 Lux: 33 k€ -> 40 k€
You can't put 100% tariffs on affordable Chinese EVs and say they're not popular.
EVs continuing to take market share from ICE, world wide.
They’re certainly taking over.
Global EV sales are reaching 25% of the new car market. You can cherry pick a month or a few weeks in one part of the world and try to say something meaningful. But it isn't meaningful.
@@tilapiadave3234
Well, Dave, I'm sorry you find actual facts to be inconvenient.
Just make up some stuff that makes you happy. And don't run with scissors.
My own experience in the car business which went on for about 60 years before I got into the real estate business. I can assure you these big corporations take a hard look at you when you get in your 60s. They don’t see an upside to anybody in their 60s and the law is pretty much ignored. They find a way to get rid of you one way or the other so you have to be a gig worker I always acted as a gig worker because I knew that they never cared so since somebody offered me more money I moved on I’m glad I did, as you can see they really don’t care.
Hard to tally that with battery EV's only accounting for 18% of new car sales and that seems to be fairly static. I would have thought they would have a few years yet. Especially given all the negative publicity around EV's relating to depreciation, repair costs, insurance and so on.
WHAT…!
If these closures are going ahead… who, what or where are their vehicles going to be made? Let alone the monetary losses of shutting a large factory on the company’s bottom line. This is a period of incredible contraction that is not being talked about by the media.
they currently make "to many" vehicles so they just wont be made at all
They will be made in china, by chinese firms...
Worked for a company that reasoned like VW did. Let one company do 80% of something very specific and the last 20% we'll do ourselves. The VW name has been in the news for a bit for various reasons but it is now the consumers (often times very brand loyal) that are waving the red flags.
If only Tony Seba could have predicted this and then posted videos on UA-cam.
🤣🤣🤣
The hubris of the large legacy car manufacturers has lead them to this. They thought that they could easily make the switch to EVs no problem. Now they're struggling on life support. They were warned years ago, this would be the result.
sounds like the 80 JAPANESE "invasion" during the OPEC fuel crises
You should play a 4sec clip of the Bloodhound Gang and try to work in "The Roof is on fire" as amny times as you possibly can. We don;t need to water let the VW burn - burn...
A seldom-mentioned point is that all legacy autos are being led by salaried employees, including the CEOs themselves. Throughout their careers, they had always been assigned certain entities or portfolios that they took over and then continue to run well or even improve upon. They are professional managers, not entrepreneurs. So even if deep down these CEOs knew since long ago that their companies had to switch to EVs, they simply couldn't do it because they lack the necessary psyche. In Toyota's case, even though Akio himself can be regarded as an owner, consider this: how often in human history has a great achiever in any field had a grandchild who was equally outstanding in the same field? Almost never. On the other hand Tesla and many of the Chinese EV manufacturers such as BYD, Li Auto, Geely, XPeng or even Xiaomi are all still being driven hard by their founders/owners.
World governments are the problem, they mandated the electric car absent consumer interest.
Oh, yeah. All the problems get traced back to the King of the World.
(Seek help.)
Union in Germany are furious, but they are part of the problem with all the benefits that they asked so many years and what made the company not competitive.
Kodak was a known dead man walking. Digital cameras had been taking off and then the cameras went into phones. We are not there for VW or any ICEs, yet.
I'm trying to figure out European August car sales. While gasoline sales plummeted 17%, Diesel down 26%, and EV sales were down 36%. BEVs dropped to 14% of the EU market.
I didn't realize the EU was looking at punitive CO2 standards in 2025. I'm a fan of BEVs, but not if done by economically punitive methods.
Ironically, this video had a VW advertisement for me at the end.
You know something, this could not happen to a more deserving bunch of corporations. Complete failure to plan for the future. They tried to ignore all this stuff and just hope it was a passing fad. Fools.
One thing that I dont like about VW is all the add on costs, with many chinese cars there are so many features added as standard. They have to change their business model and be more honest.
Misinformation on Jeep: GAC-FAC a Joint Venture between Stellantis and Guangzhou Automobile Group Co., Ltd. files for bankruptcy in China. Not Jeep or Stellantis itself.
that IS JEEP of China as stated
same as GM America went bankrupt on 08 BUT GM cars Canada NEVER went bankrupt same with Holden cars Australia all DIVISIONS
Time for VW to pack up and leave China. They ruled rampantly decades ago because most if not ALL the taxis in China were VWs. Time changed.
Software has now become a defining feature of BEVs, and in this area, VW has failed compared to most Chinese automakers and, of course the leader, Tesla
It's not over till it's over, get positive!!!
A sale is a sale!!! Get real!!!
In performance, there's a saying, it's not over till the f-t lady sings!!!
I sold and fitted car tyres, when I was younger, I learned every sale counts!!!!
Don't give up, be part of the electric revolution!!! Just do it!!!
48s ad nice :)
Was never a big fan of VW so couldn't care less. Feel bad for the workers, maybe they can get a job at an EV factory.
Love your facial expression for that clip....priceless 😂
As a VW ID.4 owner, I am terrifed at the thought of VW going belly up. As Fisker owners know all too well, if the company goes under, software support and spare parts will eventually be unavailable, and we'll find ourselves to be the proud owners of a 4,600 lb. paperweight. Well, to be honest, I am mostly worried about the spare parts and repairs side of things since the software support has sucked from the very beginning.
I have a new Jetta that needed $10,000 in parts the first year and the engine needed to be taken apart to put in new gaskets that were on back order because they couldn’t keep up with the number of engine leaks.
Yikes.
Your VW Sounds like my Ford, water pump replacement, Parts: $400usd Labor $2700 and it took over a month ………USA is next on the China hit squad list . The United States-Mexico-Canada (USMCA) Free Trade Agreement is fast becoming a free trade agreement for the world, whereas any multinational with a presence in Mexico can set up shop and make the U.S. its number one target. ⚠️China is doing that now. How will Detroit fare against China offering Americans better quality and lower priced cars? The majority of US car buyers under 40YO have no issues buying a Chinese car.
EVs are a total disruptor. We see it in every industry eventually as technology develops. You either change (like Netflix who really invested the streaming model moving away from sending DVDs out) or die (like Blockbuster).
These legacy, mainly German EV makers thought they had an unassailable position and didn’t move quickly enough, and didn’t reduce costs enough. Toyota may really suffer soon.
Compare to a company like Renault.
100%. You have to wonder what management was thinking. But they are not the first to keep milking the cash cow and only realising it's dying when it's already stone cold dead.
@@MultiMenvafan What there were thinking is that typical auto exec only stays at a company for less than 10 years. They knew that they could keep milking profits and personal bonuses at the expense of the life of the companies they work for, then deploy their golden parachutes as the companies crash and burn. They have no real loyalty to those brands; they are just a stepping stone to buying another personal jet, etc. Then they waltz on to their next multi-million-dollar salary at another company. No skin off their back.
at some point china might just ban all ice autos. wonder what that would do to oil industry
I'm certain it will happen. It is good news for everyone except for the OPEC+ mafia and legacy dinosaur-auto. And China can do it all within the framework of WTO claiming it is for the sake of climate and environment.
Our linear systems of observation and control do not understand technoligical convergence, disruption and exponential growth. The paradigm shifts result in economic and social disruption without control. Tesla sits at several tech convergences..
That is some shite
Tesla Shanghai is a HUGE factory, one of the largest worldwide @ 1M vehicles/Year. No bells and whistles, just very efficient large scale production...and it ramped to full production very quickly!
Meanwhile at Tesla TX they have spent several times more $$$ to build it...and it is STILL under construction, with only a tiny fraction of the vehicle output of the Shanghai plant.
Net result for Tesla....they are making good profit on every vehicle made in Shanghai, and they are LOSING money on EVERY vehicle made in TX.
While those things are true, that's not really the key observation that should be taken. As their Texas factory scales, it will gain similar cost advantages to their Shanghai plant, which had almost a half decade head start. Ramping auto factories typically takes 2-3 years. Focusing on their current, limited production (compared to their total end capacity) tells us next to nothing. As they have much more land to grow into at Texas, ultimately, their output could even dwarf the Shanghai factory, making it even more capital efficient. Scale is one of the key drivers of efficiency.
It's also a very apples-to-oranges comparison, as Shanghai was originally a copy-paste of the Fremont design (except arranged linearly for more efficiency), then added improvements over time. On the other hand, Austin is largely involved in "new" technologies like 4680s and CT; neither of which are fully-scaled products. Apples and oranges.
Tomorrow german carmakers have a „autogipfel“ with the politicians. They talk about the strategy for the future…..10 years too late.😂
It would be funny if it wasn't so sad...
The Triumph moment for VW now🤣
My revivifier can't forget BSA - still has the scars!
Oh no, anyway some ones developing a battery that is the size of a matchbox and provides a range of 10,000 miles with a charge time of 2 mins !
Well yeah. That's a given.
EV EV sales are on a downward spiral only thing keeping them going is government subsidies people don't want them they are crap and depreciate like a flying brick
It is a shame that contractually to fire workers, they must close the factory
sales did not fall they cease to exist !
The gap between legacy automakers and Chinese electric vehicle companies is widening each year.
The ACEA have today released August's sales figures for the EU, EFTA & UK. The total market is down 16.5% compared to August 2023. BEV sales -36%, PHEVs -22%, Petrol -18%, Diesel -26%. The only growth is in Hybrids (including mild hybrids) which are +8%.
YTD, BEVs -5.5%, PHEVs -1.7%, Petrol -3.9%, Diesel -10.2%. Again, only Hybrids are up at +20.3%.
Hybrids is a "transition" technology. The shift to EV is inevitable and only a question of the pace of infrastructure rollout.
@@MultiMenvafan Yep, as scale or ICE falls of a cliff, that also affects scale for hybrids, which are dependent on ICE to exist. So, we'll first see ICE prices skyrocket to offset lost sales, followed shortly thereafter with skyrocketing PHEV prices, until both are completely unaffordable. Conversely, as EVs keep scaling, their prices will keep coming down in accordance with Wright's Law. This was all super predictable to any of use who have been paying even a sliver of attention these past 10 or so years.
@@AMortalDefiant interesting, I actually never thought about that dynamic, like Wrights law but in reverse
good work mate... lets clean up the air quality and get healthy..
V Lung cancer in young nonsmokers is on the rise: Uncovering the cause;vehicle exhaust. What are the symptoms of lung cancer in nonsmokers? mostly none...Car Exhaust contains over 40 poisons that go into our Lungs Blood.. And Brain..
You forgot the heart. Post-mortems have shown PM2.5 particles to be found in cardiac tissue. We inhale that shit, and it NEVER leaves our bodies.
I'm in the market for a VW. A 10 year old VW TDI. Hard to find. Did VW buy them all back?
The EV push ran into the reality of high interest rates and downtrend in demand as the market is saturated.
High interest environment and recession yes, but hardly market saturation. People postpone buying new cars in such and environment, that's only natural. I believe EV demand will recover when interest rates fall and recession ends. Fossil will just keep losing market share to irrelevance.
Not really. Automotive development cycles are 4-7 years. There are some years when it seems like nothing is happening because everyone is building factories or designing EVS, and there are years that go comparatively apeshit. It's not a linear progression. It comes in starts and fits due to the long development cycle. From 2018 to 2019 was only a 9% increase in EVs, which was followed by two of the highest-growth years on record (one of which was over 100% growth YOY). That coincided with Tesla opening their Berlin factory and VWAG ramping their first EV factories. We're just in one of the "slow" years. The overall trajectory is still accelerating.
In 2008, global EV share was ~0%
In 2018, global EV share was 2%
In 2023, global EV share was 18%
YTD, global EV share is ~20%
The growth is still there, we are just at a period when factories are going up, rather than ramping output.
Nah the trend is down for pure evs, self charging is the best that ev backers can hope for.
@@richardwalsh1838 lol sure bud. Give it ten years and we'll see which car company shares are up and which are gone.
Of course the European governments could save their legacy Automakers if they simply reversed the impending ban on ICEs. Simply impose a 5l/100km limit and allow them to continue.
The fact that Golf has almost the same Design for every single generations is so crazy. Especially the interiors looks almost identical on every single generations for decades!
Because of Tesla and Chinese cars they have updated Golf's interior with bigger screen and some ambient lighting to stay relevant!
Golf: the National Car for people suffering from OCD.
I think one of the problems facing the EV adoption in the US is that of body type. The sedan has been a low profit dying body style in the US being surpassed in favor of SUVs and here in Texas Pickups (UTEs to you). The profit for legacy auto has come from big SUVs and Pickups and they are not set up to compete and make a profit in the sedan market weather ICE or EV. We see this problem with Tesla moving to non-luxury models 3 and Y. The CyberWTF is not going to be a solution.
China saved VW once but not this time....
it has nothing to bring to the Chinese table, VW is screwed.
I wish they could bring back Herbert Diess. He was more focused on electric. There are nice things about Volkswagen vehicles if the software could be improved and efficiency of the motors was improved. I heard Lucid Motors is considering licensing their motors. They have higher efficiency motors.
They almost have a Toyota problem by creating electric vehicles with lower range and higher prices. It is better to do something the best instead of half trying.
Ev sales have collapsed...
Derisking is going well.
Volkswagen dosen't make compeling EVs except the ID Buzz which is too expensive
WV's problem is no demand.
Running at 56 % manufacturering not great but pays the bills
What's behind closings is its not going to get better and alot faster losing market share.
Business school rules suggest operating at Less Than 70% capacity leads to bankruptcy...
@@FrunkensteinVonZipperneck ty my thoughts because the massive size shut down say half the plant could be deal breaker but no thinking goes into building the plant for exactly what does happend from time to time this time might be bigger than norm still......
Its a problem caused by management and unions together. Management failed to understand that quick and efficient Research is a must to succeed. And the Unions did not understand that Labor is a major cost factor and if a vehicle is not competitive in cost it will eventually be phased out.
China has a big advantages. They throw tons of money into R&D and they build new factories that utilize automation as much as possible.
Corporations need to reform their methods of choosing their leadership. Over and over corporate leaders are making decisions that are terrible for their companies, their workers and their investors. Change is difficult but leaders must have the courage to change if they are to truly lead. Not just do status quo and collect a big check.
While I agree it is also a complex question. Herbert Diess got fired at least in part for being too visionary. The owners and stakeholders in VW had it coming, it's not only leadership.
That's one of the many downsides to an economic system to prioritizes making money over everything else. We like to idolize capitalism, but it's just a tool like any economic system; it can be used wisely, or poorly.
@@AMortalDefiant absolutely. But to paraphrase, capitalism is worst economic system apart from all other systems we've tried
Real economy is by real investment and reaction. Once they leave , a dark pic is waiting ahead. Trans moving is not investment creation . It does not mean anything about economy but a mere number, which shall be saturated ceased.
SAIC isn't owned by the state, it is owned by Municipal gov. of ShangHai... State owns three factories you may have heard of: FAW in ChangChun, DongFeng in WuHan, Chang'An in ChongQing
gov. of Shanghai is probably bigger than Frunkin' Canada!
they should build hydro now lol
Hydro what ?
@@christophmartin5381 go back to school kid
A mobile bomb?
@@mindaza0 What do you mean with "hydro" ....water? Because hydro is water... But building engines with water fuel might be a environment friendly solution....
also Rivian investment 1 billion 1 st year up to 5 billion over 4 years
Here’s the USA Rivian Problem. The United States-Mexico-Canada (USMCA) Free Trade Agreement is fast becoming a free trade agreement for the world, whereas any multinational with a presence in Mexico can set up shop and make the U.S. its number one target. ⚠️China is doing that now. How will Detroit fare against China offering Americans better quality and lower priced cars? The majority of US car buyers under 40YO have no issues buying a Chinese car.
Most ordinary people don't want EV,s.
I can't imagine what's going to happen to German automakers once the Chinese begin to aggressively compete in the luxury segment.
do chinese EV manufacturers receive more goverment incentives than international EV manucatures, does BYD get more ecentives than Telsa?
no
@@tilapiadave3234 Any single article about it does mention that ANY western brand that produces in China has access to same subsidies and profits from them. Thats one of reasons why Tesla cost so little in China in comparision to rest of the world and could participate in price war going on there.
EV sales in Germany down 50% YOY
Context matters. The sharp decrease was due to massive cuts to subsidies. It's disingenuous to infer that that was just due to lack of demand. Elsewhere, EVs are still growing. YTD, we are about 20% EVs globally, up from 18% last year. The key number is China being over 50% EVs, as most global automakers make half their revenues inside China. That means they no longer have the option to slow-walk EVs. It's either make EVs ASAP, or lose half their revenues, and go out of business.
@@AMortalDefiant exactly. remove subsidies, and it no longer makes financial sense. no demand. Nobody want them. Those that do already own them. Ok, sure, the lifespan of EV car is much shorter, because the battery life is kinda woeful. ANd it not make sense to replace the battery because of the very high cost, and you still have a beat up old car. It not make sense
Wir schaffen das
NEV cars are not only EVs....This are also ICE cars with a small battery,....
No, battery vehicles with a small ICE. Sounds like a small difference but actually totally different
@@jayceh I know many people here that never unpacked the charging cable for these PHEVs because they bought it for tax reasons alone....
@@simpromovie America is not the world. That's not how people in the biggest car market nor the fastest growing are using PHEVs since there are no incentives
@@jayceh Maybe. But I did not see any real advantage compared to a BEV. I am so happy that I get rid of this combustion engine and all that is related to it...
@@simpromovie some people need that peace of mind. 2,000km range also let's you go on road trips without checking for charging stations.
Some people like that.
Freedom of choice. That's a nice thing.
Heard a rumour that VW is considering pulling out of Australia. If true, ultimately good for consumers not so good for dealer staff.
US auto may have to use same strategy to rid unions
Who pays for the closed factories? Its not for free, and the quy with the money is the car buyer...
Good Chinese brands can buy and take over these production lines instead of building new ones
China has invested in engineering to build these cars which legacy hasn't done because they were more interested in investors making money. The wages of the workers are not the issue here when you look at the profits of these companies. This started in 70s with GE shutting down factories and moving to foreign countries and other companies followed suit and now they are paying the price for allowing it to happen but at the same time blame the workers who are the middle class and without them who buys anything. China's problem is that it relies on selling out of the country to keep people working but with a population in decline because of their one child policy so It's now or never for them. Younge people are rebelling in China and are dropping out of the work environment and XI does not know what to do about it.
City People want scooters now, not cars. VW could have produced them but choose not to. Low demand means it's not required to produce as much as before, leading to layoffs.