The sales figures for battery-powered vehicles are plummeting, leading to job cuts and reduced production shifts at VW and Porsche. Manufacturers like Mercedes and BMW are once again focusing more on combustion engines. Herbert Diess’s ambitious goal of making Volkswagen the world leader in electromobility by 2025 has not materialized, and the company is now facing challenges due to the decline in electric car sales.
Despite selling a record number of electric cars last year, VW’s battery-powered vehicles accounted for only a small percentage of total sales. The company has had to rely on combustion engine models to generate profits, leading to job cuts and reduced production shifts at its Zwickau plant. Porsche is also considering similar measures due to weakening demand for its electric flagship model Taycan.
German buyers are shying away from electric vehicles, leading to a drop in sales and oversupply in the market. Chinese competitors offering cheaper electric vehicles have added to the pressure on German car companies. This, coupled with political decisions like the cancellation of purchase premiums for electric cars, has further exacerbated the crisis in the industry.
Some German manufacturers are shifting their focus back to combustion engines, acknowledging the challenges in the electric car market. Companies like Mercedes-Benz and BMW are investing more in combustion engine development and production. Volkswagen is looking to the state for support in overcoming the electric crisis and has called on the government to resume subsidy programs to promote electric vehicle sales.
In the midst of this crisis, strategic shifts are taking place in the boardrooms of German automobile manufacturers. While some are reevaluating their goals for electrification, others like BMW are maintaining a balanced approach to both electric and combustion engine technologies. The industry is facing challenges, but with the right strategies and support, it may be able to navigate through this turbulent period.