VW seems to be panicking...
Discussion
Well worth a watch: https://www.youtube.com/watch?v=z2hdSMlaoBg
https://www.telegraph.co.uk/business/2023/09/14/vo...
Volkswagen is cutting almost 300 roles at a factory in Germany as demand for electric cars dwindles.
The redundancies are being carried out at the car giant’s plant in Zwickau, where a further 2,000 temporary workers are also at risk of losing their jobs.
Volkswagen’s Zwickau factory only produces electric vehicles, which have fallen in popularity due to high inflation and faltering government support.
The job cuts, which were first reported by the German press agency DPA, come as the company prepares for an influx of cheaper electric cars from China.
While purchases of electric vehicles have been strong in the past few years, manufacturers fear customers are being increasingly put off because they are too expensive.
Volkswagen is cutting almost 300 roles at a factory in Germany as demand for electric cars dwindles.
The redundancies are being carried out at the car giant’s plant in Zwickau, where a further 2,000 temporary workers are also at risk of losing their jobs.
Volkswagen’s Zwickau factory only produces electric vehicles, which have fallen in popularity due to high inflation and faltering government support.
The job cuts, which were first reported by the German press agency DPA, come as the company prepares for an influx of cheaper electric cars from China.
While purchases of electric vehicles have been strong in the past few years, manufacturers fear customers are being increasingly put off because they are too expensive.
Pit Pony said:
coetzeeh said:
The EU are already exploring tariffs for Chinese cars to counter subsidised Chinese brands. China apparently outraged. The EU won’t allow manufacturing to fail given The amount of people the industry employs.
The thing is.The world's universities have been giving away our IP for nearly free, the corporations in the west have milked the low wage economy of China for years, and we got in bed with the devil long ago.
Cam we even make electronics anymore ?
In the place where I work:
One research group, hugely successful in repeatedly gaining EPSRC research grants. Well into the millions at this point. Highly technical, mathematical, and, increasingly ML-related, area. Hits all the right buttons for the Government's vision of UK Plc and, therefore, gets lots of money thrown at it.
The Prof leading the research group is a Chinese national.
The lecturers associated with the research group are all Chinese nationals.
Every single PhD student they recruit is a Chinese national (strange, that).
And they don't interact with anyone outside their group.
So, UK research funding is generating IP that is flowing straight to China year after year.
The Government doesn't care because it's "supporting UK Plc."
The University VC absolutely does not care because these guys are generating the research income and writing the papers and that means league table movement in the "right" direction.
This situation is not rare across the UK.
And don't get me started on Confucius Institutes...
The point for the Chinese government - assuming their property sector doesn't completely implode and take everything else with it in the interim - is to "pump and dump" their products into well established markets overseas. Pricing below cost.
Do this for long enough and the incumbent Western actors (e.g. VW in the automobile sector) can't complete and go under. Then the Chinese take over and prices rise back to what they needed to be for business survival.
It worked for the Chinese previously with the Western steel producers.
And worked for the Rothschild family prior to that with American railroads.
Do this for long enough and the incumbent Western actors (e.g. VW in the automobile sector) can't complete and go under. Then the Chinese take over and prices rise back to what they needed to be for business survival.
It worked for the Chinese previously with the Western steel producers.
And worked for the Rothschild family prior to that with American railroads.
DMZ said:
The problem for VW when it comes to Chinese trade barriers is that they make cars in China and they are one of China’s biggest brands if I’m not mistaken.
I suspect the bigger problem is the complete lack of FOMO when it comes to EVs. Deflation is obviously a big factor and VW has been on a big price cutting spree along with others and then there’s the reality of something new and better and perhaps cheaper in another few months. Unless you are stuck on the lease train, why bother? Particularly if you already have an EV that keeps ticking in the same EV benefits.
My understanding is that things are going really badly for VW in China as well. I suspect the bigger problem is the complete lack of FOMO when it comes to EVs. Deflation is obviously a big factor and VW has been on a big price cutting spree along with others and then there’s the reality of something new and better and perhaps cheaper in another few months. Unless you are stuck on the lease train, why bother? Particularly if you already have an EV that keeps ticking in the same EV benefits.
The Chinese consumer is far less tolerant of VW's quality problems, it seems. Esp. when the local brands are better.
https://www.ft.com/content/1386906c-5dd1-4167-bc96...
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