Concern is growing at Volkswagen for the future of the German giant and the European market in general. The position of Oliver Blume, CEO of Volkswagen, is clear: the change It is necessary as the European market is shrinking and competition is increasing. In his words to the German newspaper Bild am Sonntag, “the cake has become smaller and there are more guests at the table“.
Volkswagen’s concern
According to Blume, there are in fact two elements to take into consideration: on the one hand “Fewer cars are sold in Europe“, on the other “new competitors from Asia are forcefully pushing into the market.” Translated: if no measures are taken, even heavy ones, the risk of collapse for Volkswagen could become more concrete. This is why the company’s plans also include the possibility of closing two factories in Germany and ending job guarantees in six of its plants, in an attempt to strengthen its cost-cutting strategy from 10 billion euros.
The factors: from the market to the competition
In recent days, a meeting was held at Volkswagen headquarters in Wolfsburg attended by several executives, including CEO Oliver Blume and CFO Arno Antlitz. And it is precisely the latter that raised the alarm: Volkswagen he’s only one, maybe two years old available to recover as the group’s main brand. According to the German giant’s own financial director, in fact, the European car market has contracted since the beginning of the pandemic and at the moment it is unlikely to think that it will be able to return to previous levels in a short time: therefore, we should see a significant drop in demand, especially for electric vehicles, which will mean that Volkswagen will sell around 500,000 fewer cars in a year.
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