...Source: [ Ссылка ] Transcript: Per InsideEVs, Volkswagen and Stellantis are facing significant challenges in 2024. Volkswagen is dealing with software issues, labor problems, and competition from Chinese automakers in the Electric Vehicle market. Stellantis, which includes brands like Jeep and Ram, is struggling with underperforming models and a lack of cohesive company culture.
Volkswagen may even be forced to close plants in Germany for the first time in its 90-year history. Stellantis, meanwhile, is heavily reliant on its American brands for revenue, but those brands are also struggling.
A report from Transport & Environment predicts that Electric Vehicles will account for 20% to 24% of new car sales in Europe by 2025. However, the report raises concerns about whether European automakers can compete with more affordable Chinese Electric Vehicles. Chinese brands already make up 11% of European EV sales, and this number is expected to grow as Chinese manufacturers establish local factories in Europe to avoid tariffs.
Volkswagen’s CFO recently admitted the company is short by about 500,000 cars due to shrinking market demand in Europe. This has left several factories operating at unprofitable levels.
As Chinese automakers continue to offer more affordable and technologically advanced Electric Vehicles, European companies may struggle to keep up, with potential long-term impacts on jobs and the broader economy.
