EXPLAINER | What's driving the Volkswagen crisis
In May, Volkswagen finance chief Arno Antlitz warned that Europe's top carmaker had about two or three years to prepare for cut-throat competition from abroad, mainly China.
Second, Volkswagen recently cut prices for VW brand cars to counter tougher competition, a move that according to works council boss Daniela Cavallo has cost the company hundreds of millions of euros in profits. "This is one of the largest car producers in the world which is not producing large returns out of all that scale," Cole Smead, CEO of Volkswagen shareholder Smead Capital Management, said."Do I think they can sustain that level of production in a country that demands so little? It's impossible."
By comparison, margins at Renault and Stellantis , the two other big European volume carmakers, were 8.1% and 10% respectively in the first half of the year. Citing the numerous challenges, DZ Bank analyst Michael Punzet said he expected Volkswagen to cut its full-year group margin target again when it publishes third-quarter results.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Ex-Volkswagen CEO faces trial over 'dieselgate'Former Volkswagen CEO Martin Winterkorn is set to go on trial Tuesday for his role in the "dieselgate" scandal, nine years after the saga first plunged the German auto titan into crisis.
Read more »
Volkswagen warns of historic German plant closures, end to job securityVolkswagen warns of historic German plant closures, end to job security
Read more »
Wait almost over: Volkswagen prices spruced-up T-CrossPreviewed as its maiden product Indaba in February, Volkswagen has released official details and pricing of the facelift T-Cross.
Read more »
Copper-clad ‘concept’ Volkswagen Polo revealed at Kyalami F.o.MFor now only a case study concept, Volkswagen has used the Kyalami Festival of Motoring to debut the Polo Copper Edition.
Read more »
Volkswagen Golf 8.5 and Tayron in the pipeline for South AfricaVolkswagen South Africa has confirmed interest in bringing both the Golf 8.5 and replacement for the Tiguan Allspace to market.
Read more »
Volkswagen unwraps safer, more tech filled facelift Polo VivoVolkswagen South Africa given the country's best-selling passenger vehicle, the Polo Vivo, its first mid-life update since unveiling in 2018.
Read more »